Saturday, November 6, 2010
What’s Wrong with the Harley-Davidson Deal?
President Obama has identified the Harley-Davidson deal as a great one for America that will increase jobs in our country. In fact it will result in new jobs in India and result in no decrease in the current tariff India’s consumers pay on fully assembled motorcycles from the U.S. For the average India consumer the import tariff imposed on Harley-Davidson motorcycles doubles the cost. Rather than convince the Indian government to reduce their tariff in support of lowering trade barriers the Obama solution is help Harley open a production facility in India that create jobs for the Indian economy and does nothing to reduce the existing trade barrier for American goods in the Indian market. It’s hard to see how this is a win-win for America. It’s just another example of poor negotiating by Obama’s trade team. People often complain about call-centers for American products being located in India. How will they feel when their Harley-Davidson motorcycles come from India too?