Move to permit used-car imports criticised
02 June 2008
Mumbai: Even though the Indian government took a tough stand against the liberalisation of trade in re-manufactured goods at the World Trade Organisation (WTO), it is now trying to get the industry to get the industry to give up its opposition to the import of ''re-manufactured'' goods.
However, the Indian industry is of the view that re-manufactured goods are actually cheap second-hand goods masquerading under a so-called respectable banner of having been 're-manufactured'.
Most industry bodies are opposed to the import of second hand goods, saying that they will adversely impact domestic manufacturing.
Coording to reports, some government sources acknowledge that the recent inclusion of re-manufactured goods in the non-agricultural market access (NAMA) discussions has been done to appease some developed countries. Though they say that government will opposed it, they are still optimistic that the Indian industry should rethink its stand on market access in re-manufactured goods.
High up on the list of re-manufactured goods is the Indian automobile industry. Though other countries such as Afghanistan, Australia, New Zealand, Fiji and Sri Lanka have opened up their markets to remanufactured automobiles, India continues to oppose the move.
The Society of Indian Automobile Manufacturers (SIAM) and the Auto Component Manufacturers Association (ACMA) are unified in their opposition, saying that permitting re-manufactured auto components into India could expedite the demise of the nascent Indian automotive industry.