Dreans Of Cheap Beer Lao Destroyed

[ricklev]

I had breakfast this morning with a Thammasat economist who told me that Laos participation in AFTA would be delayed til

2015 in some areas because they were not original ASEAN members and that he did not expect any tarriff reductions in beer or liquor from Laos until that time. I hope he is wrong but he sounded both confident and knowledgeable.

"When the AFTA agreement was originally signed, ASEAN had six members (Brunei, Indonesia, Malaysia, Philippines, Singapore, and Thailand). Vietnam joined in 1995, Laos and Myanmar in 1997, and Cambodia in 1999. All four countries were required to sign on to the AFTA agreement in order to join ASEAN, but were given longer time frames in which to meet AFTA's tariff reduction obligations."

[dantilley]

Well, if that's true then it would be even longer for Cambodia also - so no Angkor or Black Panther beer either!

[gotlost]

I love rumors.

[terrier123]

Does anyone have personal knowledge of imported beers being CHEAPLY available under this scheme -- especially along the Mekong River?

[angiud]

Do you mean smuggled, possibly together with fake Marlboro, Yabaa, ice, weapons etc etc ?

[ricklev]

The economist told me that there is a certification process for duty free importation under AFTA that is currently "time consuming" and he had no idea when tarriff free imports would actually occur.

[thunder30101]

In laymans terms what he is saying = We will delay any competition from outsiders until forced to.

[Briggsy]

The big 2, Boon Rawd & Thai Beverage, will continue to fight tooth and nail to block this and will be successful in doing so for many years to come. They have a very cosy cartel and are amongst the richest, most powerful families in Thailand. Their political connections and lobbying ability are very impressive.

I have been saying this on this forum for a long time and will continue to do so.

Thanks to the OP for some factual insight into how they are achieving their protectionist goals.

There are some interesting beers brewed in Malaysia but these will be effectively blocked if they threaten the mass market.

On a separate but related point, don't be hoping for any reduction of the duties on imported wine.

[kyb789]

The economist told me that there is a certification process for duty free importation under AFTA that is currently "time consuming" and he had no idea when tarriff free imports would actually occur.

I think "duy free" doesn't mean a thing. There was something in the paper the other day about the goverment considering another tax to protect Thai brands and keep people from drinking too much. Anyone read it? There are plenty of loop-holes to get around political jargon.

[mahtin]

I hate breakfast meetings.

Thank heaven for little Leos.

[blakegeee]

I was wondering what would happen. I didn't believe for a second that the price of imported alcohol from ASEAN countries would actually go down as of Jan 1, 2010 as promised. What excuse are they using for the other countries that have been part of ASEAN since the beginning?

[Credo]

They will, they won't, they will, they won't.....Should it the Land of a Thousand Broken Promises.

Same, same the on-line lottery.

[raro]

The problem is not that much the duties but the excise tax which is imposed on the value of the goods plus the duties.

No comes the trick: If there is a duty exemption or reduction the excise tax is calcualted as there was NO exemption/reduction, i.e. it remains quite high. Hence, the overall savings would be minor.

Moreover, I heard rumours that the excise tax on imported alcohol will be increased. So...even if duty free, you still keep paying through your nose. Wonder how ASEAN would deal with that if it comes through.

[Meridian007]

We're 17 days in from the "starting date", and although the certification process is "time consuming", I think Briggsy's ideas about the political strength of the families tied to Thai brewing companies is correct, and is going to dictate where this goes. ASEAN as the "paper tiger" continues to show how insular each country is, (or at least Thailand), when it might be faced with actual "forced" changes.

Each country is happy when there is nothing more than talk, as it makes them seem advanced and progressive, "Oh look, we are like the E.U.!", but they can't even get trade equalization within the union working properly.

Now they're focusing on the "ASEAN community" and human rights throughout the region? They should learn to walk before thinking about flying...

It's not just beer either, they've also decided to pull out of other ASEAN initiatives: http://www.thaivisa.com/forum/Thai-Tourism...15-t329974.html

There has been talk of an ASEAN wide visa policy (for foreigners to ASEAN, ASEAN members supposedly no longer need visas) that I don't see Thailand participating in either. With its draconian visa requirements, Thailand has to be the most difficult country out of the bunch, and I don't think they want to make any changes.

In the other thread, someone mentioned that Thailand seems to be increasingly internally focused, and afraid of forcing itself to shape up to international standards. It seems to think that it is easier to close its doors and congratulate itself on its false accomplishments, rather than working hard to make real ones. I don't know if the rest of ASEAN is being as stubborn as Thailand, but most of the news I see shows Thailand backing away more than any other member. Thailand seemed to moving forward 10 years ago, but it is sadly being left behind by its neighbors who understand what is needed to succeed. I really hope they figure this out in time!

[SantiSuk]

Has anyone tried bringing back cases of say ABC or Black Panther for personal consumption across the Cambodian border in their own vehicles? I will be travelling to Siem Reap a fair bit now I have discovered it is less than 4 hours drive from my house. It would be nice to pick up say 10 cases of mixed Cambodian beers. Anyone know whether duty would be penal or just sensible?

Same question re Beer Laos and Laos.

[sanook2me]

Its only falands who drink Lao beer in Thailand...do we really drink enough for it to be sold in the 7 - 11 's? probably not...

Me personally don't enjoy loas beer and am quite happy switching between crisp sharp heineken and flat leo.....

[Briggsy]

I would love to have the choice of beer that one has in Cambo or Laos.

When I go into the 7-11 in BKK, I am confronted with about 8 different fizzy lagers, some "premium", some "cheapo". Actually, I don't mind a fizzy lager but variety is the spice of life and sometimes I fancy a Beer Lao Dark or an ABC or a barley wine that can be bought in neighbouring countries, along with all the Thai beers.

Admittedly I can go up to Villa or Foodland and buy very pricey imported beers.

The bottom line is it comes down to protectionism by the big breweries here who have no wish to have to compete with beers brewed in other ASEAN countries. And I have not even begun on the profitable spirits sector.

As another poster mentioned, the same thinking and market conditions can be seen in other sectors.