Europeans demand Australia dumps car taxes

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European Union trade negotiator, Cornelis Keijzer, insists the abolishment of Australia’s 5% import tariff on European cars and the 33%tax on luxury cars will be a key condition of any free trade agreement (FTA) with the EU. Trade Minister Simon Birmingham says the federal government will be open to requests from the EU with regard to tariffs on specific products, but any decisions will be made in the context of the broader deal:

Senior EU trade negotiator Cornelis Keijzer told The Age and The Sydney Morning Herald on Wednesday that Australia had agreed to discuss the removal of the automotive taxes which he argued would give local consumers cheaper cars and more choice.

During a visit to Melbourne on Wednesday Mr Keijzer described the EU push for the removal of the car tariff and luxury car tax as “one of the key demands on our side”…

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About the author
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness. Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.