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Will Australia end tariffs on car imports?

Saturday, 16-Aug-2008 10:24PM PDT
    
Story from United Press International
Copyright 2008 by United Press International (via ClariNet)

CANBERRA, Australia, Aug. 17 (UPI) -- A report recommends the end of tariffs that have protected Australian automobile makers from foreign competition.

Steve Bracks, former premier of the state of Victoria, suggests the industry get more assistance than previously planned -- a total of $3.5 billion Australian ($3 billion U.S.) over the next 10 years, The Australian reported.

The government of Prime Minister Kevin Rudd is expected to accept the report and to cut tariffs 5 percent to 10 percent in 2010.

About 65,000 people work in automobile manufacturing in Australia, most of them in South Australia and Victoria.

Bracks said the industry would be "better off overall than had we recommended a freeze in the tariff." He also warned that carmakers should prepare to be completely self-supporting within 10 years.