Under the AICO scheme, Republic Asahi will export rear windshield safety glass to Thailand.
In return, Thai Glass will export safety glass for appliances to the country.
The expected export volume for Republic Asahi is only $200,000, while the projected export value of Thai Glass is higher at $487,000.
Trade and Industry Secretary Manuel Roxas II said that the Trade and Related Matters (TRM) Inter-agency committee has approved Republic Asahi’s AICO plans.
Roxas said that while the AICO scheme between Republic Asahi and Thai Glass appears to be in favor of Thai Glass, it will actually be more beneficial for the country.
He said the government actually wants to develop a local kitchen appliance industry. "The country needs the raw materials to develop a kitchen appliance industry," Roxas said.
Under the AICO scheme the two cooperating firms would enjoy preferential tariff rates for their imports. The preferential rates under the AICO scheme ranges from zero to five percent.
Roxas pointed out that while the TRM has given its approval for Republic Asahi’s AICO scheme, it will still have to go through a certain process.
He said that the TRM would have to elevate the approval into an Executive Order and recommend it for signing.
Such a process is necessary since it involves bilateral negotiations on tariff matters.