General Motors says Asia still protective<\/p>\n
MANILA (UPI): U.S. automotive giant General Motors Corp.
\nSaturday criticized persisting protectionism in some Asian
\ncountries, blocking Western car manufacturers from tapping the
\nregion's potential markets.<\/p>\n
GM chief economist G. Mustafa Mohatarem said most of Asia's
\nbooming car markets remains untapped, except for Japan and South
\nKorea, frustrating American car manufacturers' aim to cash in on
\nthe region's rapid growth.<\/p>\n
\"The problem in Asia Pacific is that each country has a large
\nlevel of protection,\" said Mohatarem, one of some 550 top
\ncorporate officials attending the Asia Pacific Economic
\nCooperation Business Forum in Manila.<\/p>\n
\"It is very difficult for us (western carmakers) to achieve
\neconomies of scale,\" he told journalists.<\/p>\n
Mohatarem cited China as a possible \"explosive market,\" with
\nthe number of affluent Chinese amassing wealth and property
\nincreasing as rapidly as the economy grows.<\/p>\n
He urged Asian countries to adopt policies in line with
\nregional trade blocs' goals to liberalize trade and investments,
\nincluding APEC and the ASEAN Free Trade Area.<\/p>\n
\"If they go in the direction of AFTA goals, there will be a
\nsubstantial decline in car prices,\" he said. \"But if they choose
\nto remain to serve country-based market, this will hold back
\ngrowth (in the industry.)\"<\/p>\n
AFTA aims to reduce tariffs by the year 2003 among the seven
\nmembers of the Association of Southeast Asian Nations, which are
\nthe Philippines, Vietnam, Indonesia, Thailand, Malaysia, Brunei
\nand Singapore.<\/p>\n
Mohatarem also criticized an Indonesian car policy giving
\npreferential tariff exemption to Kia Motors Corp., which has a
\njoint venture with President Soeharto's son.<\/p>\n
GM hopes the dispute would not reach the World Trade
\nOrganization, which implements the General Agreement on Tariffs
\nand Trade.<\/p>\n
\"I'd rather have it settled now because this is when the
\nmarkets are growing and this is when we have to make investment
\ndecisions,\" he said.<\/p>\n
The United States, European Union and Japan threatened last
\nmonth to file a complaint against the Indonesian national car
\npolicy favoring vehicles produced by Kia Motors.<\/p>\n
The duty-free status of Kia Motors already has forced GM to
\nstop one of two production lines as manufacturing became too
\ncostly, making Indonesia a tough market for Detroit's largest
\ncarmaker.<\/p>\n
Mohatarem expressed hope U.S. Trade Representative Charlene
\nBarshefsky could convince Indonesia its car industry will not
\nbenefit from a policy of protectionism amid a booming global
\nmarket.<\/p>\n
\"We certainly hope that Amb. Barshefsky will be able to
\npersuade the government of Indonesia that (the policy) is not in
\ntheir long-term interest,\" he told journalists.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/general-motors-says-asia-still-protective-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}