gopalakrishna

European car-makers, which have pumped in excess of two billion dollars to set up manufacturing units in India, are opposing an EU proposal for big tariff cut on automobiles under WTO negotiations, an Indian official said here.

India has written to the European Union highlighting demand of several multinational firms, including Renault, BMW and Volkswagen, that tariffs should not be reduced as these provide protection against imports.

The US and EU are putting pressure on emerging economies such as India to scrap tariff on the automobile sector under the so-called 'zero-for-zero' or 'zero-for-x' sectoral initiatives in the proposals put out by the WTO.

The demand is seen to end protection from imports provided by high tariff enjoyed by many firms like BMW, Volkswagen, Honda, Renault and Hyundai, which have set up plants in India.

"We have even got a letter from all these companies saying that they do not want the tariffs to be reduced. We have told this to EU Trade Commissioner Peter Mandelson," according to a senior Indian official here. PTI

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