Japan FTA Opens Gates To Cheaper Cars, Parts
Bandar Seri Begawan - Used car dealers are glad that the free-trade deal between Brunei Darussalam and Japan will lead to cheaper car imports, but at the same time they are apprehensive this may force them to lose their markup during the months when the pact takes effect.
The two trading partners on Monday signed a free-trade agreement which is aimed at cutting tariffs or import duties and ensuring a stable supply of natural gas to Japan.
Brunei will abolish its 20 per cent tariff imposed on automobiles and auto parts from Japan within three years of the implementation of the agreement. With most of the general public looking forward to seeing the tariff eliminated, there are some who remain uncertain, such as second hand car dealers.
“Currently we aren’t certain when the exact date the tariff will be eliminated and depending on how much cars are left in the stock yard or how much we purchase the cars for, in the end the price of our existing Japanese cars will have to be reduced,” a dealer said. “It’s bitter-sweet in a way that the next shipment after the announcement will also be cheaper. But right now it’s uncertain what will happen.” READ MORE…