Australian Tariffs

Topics: Automotive industry, Economics, Tax Pages: 2 (672 words) Published: December 22, 2013
Should Australia reintroduce tariffs for the car industry?
Australia’s automotive industry is a significant contributor and major employer to the national economy. But the economy is in crisis. The greatest problem for the automotive industry is the mindset of the cabinets. Cabinets became downright apoplectic and argue that tax payers should not support a failing industry, and they vehemently combat the automotive industry policy as a matter of principle. The truth is, Australia cannot afford losing its car industry. Several academic investigations have been conducted about how this industry contributes to national economy, and the answer couldn’t be clearer: it would cost Australia more losing its automotive industry rather than supporting it so it can grow strong again. Instead of being a dead weight to Australian economy, the automotive industry is a great contributor to it. The Abbot cabinet shouldn’t burden this weakened industry with tariffs that will ultimately lead it to its doom; instead, it should invest more in it, understanding its real value and accepting that it hasn’t received enough attention. The government focuses more on primary production, like cattle, mining or grains; little is left for transforming industries like the automotive one. Australia should improve what it has to offer to investors, since it’s facing a hard competition from other countries. If the automotive industry were to collapse, it’s clear that other industries would follow it as well.

Can you give examples of current tariffs, subsidies or quotas applied by the Australian Government? Do you agree with the imposition of these tariffs, subsidies and quotas? Australia applies several tariffs on a wide variety of trading goods. For example: instruments, weapons and manufactured articles have a 1% tariff; dairy produce, natural honey, birds’ eggs and other edible products of animal origin that aren’t specified elsewhere (in the tariff establishment table) have a 0.17%...
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