”We will not hesitate to do what we must to defend our jobs, our industry and our growth.”

President Dilma said once that the substantial increase of imported cars that is taking place in Brazil is “an attempt to cannibalize” the local auto market. Her solution was easy: just tax them!

According to O Globo’s Carlos Alberto Sardenberg, she did not explain what she meant with “cannibalizing’ but she gives a clear example of how and why the imported cars are a success in Brazil. The President circulates in a shielded Omega, produced by General Motors in Australia and imported by GM Brazil. Also included in the presidential fleet are Ford Fusion cars, manufactured in Mexico and imported by the same manufacturer.

China is planning to pass a rule that would require government officials to stick to purchasing locally made carsthe “Buy China” rule comes after slowed growth and greater competition in the market, which poses a problem for the local car industry.

Shouldn’t Brazil do the same?

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