Indian Industry Group Seeks Duty On Chinese Cars
The Hindu Times reports that the Society of Indian Automobile Manufacturers and TATA Motors have asked the Indian government to slap a 35 percent duty on Chinese goods. The duty's proponents argue that Beijing's enforced yuan-to-dollar parity has given Chinese manufacturers up to 30 percent advantage on exports. The proposed duty will supposedly level the playing field. Of course, what's bad for Indian manufacturers is good for Indian consumers. But protective tariffs have become a worryingly commonplace phenomenon in the Asian auto biz. Once one country gives its industry a small advantage, it tends to create a protective tariff arms race and from China and Korea to Malaysia and Indonesia, everyone is jumping in on the action. If India further legitimizes the practice, there will be few remaining incentives for fair competition in the fastest growing auto markets in the world.