FOREIGN CAR IMPORT RULES TO BE TOUGHENED?

RIA Novosti ^ | 12/05/2005

[jb6]

NABEREZHNYE CHELNY, May 11 (RIA Novosti) - Russian Industry and Energy Minister Viktor Khristenko has proposed fixing prohibitive import duties on foreign cars beginning from five instead of the present seven years of age. He said this when visiting the AvtoVAZ factory (Russia's leading carmaker).

The Russian automobile market is promising and expanding, he said.

"Recalling the last year estimates, it is 17 billion dollars as regards only cars. This year it is 20 billion dollars. In 2010 the Russian car market will increase to 31 billion dollars," Khristenko said.

His working visit to the KAMAZ factory is pegged to the preparations for cabinet consideration of the average-term outlook for the development of the national automobile industry.

The cabinet of ministers passed the decision to ban the import of cars older than seven years in late 2003.

Khristenko said that the measures taken then were no longer justifying themselves.

For instance, in the first quarter of 2004 the import of used cars greatly increased and its rate of increment is now much above the rate of production and sale of cars made in Russia.

Khristenko noted that, during his visit to KAMAZ (Russia's leading manufacturer of trucks), Russia's truck making on the KAMAZ example was in discussion. "It was a very useful and to-the-point conversation. Overall, the rules of the game on the domestic automobile market have been in discussion today," Khristenko said.

He noted that clear and long-term technical control norms, as well as requirements for reaching the European environmental-friendliness standards, are to appear.

A deadline for switchover to the new standards is to be set, Khristenko said. It will make things clear for both producers and partners, he said. "For instance, KAMAZ is in cooperation with foreign makers of automobile components," he added.

In Khristenko's opinion, customs tariffs as a market regulation method also have to be revised.

"The duties should be adequate. Imported foreign cars should not enjoy the same preferences in environmental friendliness as home-made cars, which is unfortunately often the case," said the industry and energy minister

[jb6]

Since they first put down 25% tariffs in 1999, there have been 6 auto plants openned up by foreign companies and Toyota, Nissan and Honda are also planning on openning plants. Just like the flat tax, tariffs work.

[Wally_Kalbacken]

The KAMAZ GT 500XL - MKII eats Chevy's for breakfast!

[jb6]

ping

[Red6]

I'm 100% for free trade, as long as it's REALLY two way free trade.

That's the issue! All will give you lip-service and talk a good bit. In the end, few are really sincere and all they want is to export export export and with behind closed door taxes, environmental rules, safety codes, insurance games or whatever will try to block our imports. Yet these restrictions are never called a "tariff", all awhile they export heavily and if the US cries foul they scream "Free trade" back at us.

I’m all for “free trade”, but our government needs to become a real “A-hole” in monitoring and enforcement. We need to slap a 1:1 dollar trade balance limit on those who are determined to be playing crooked. Their products or services may not enter our country unless we sell an equal value to them.

Red6

[jb6]

bing