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goinbroke2 · 02-22-2009, 08:33 PM

A buddy of mine still wears his NAFTA t shirt that depicts an eagle screwing a beaver. Both Canadian and americans think they got the shaft.
I personally think the issue is the fact that every other country has a VAT (Value Added Tax) except the States and Canada on most products.
Example:

It cost $15,000 to build a car in north america and you sell it for $20,000 you make $5,000

In other countries though it only cost $10,000 to build, $1,000 to ship and sell for $15,000 making $4,000 and undercutting the very economy you ship to!

Here's what's worse, cost $15,000 to build in NA, $1,000 to ship to asia/europe and add 25% VAT = $20,000 which doesn't include any profit!! Remember they built for $10,000? That is one reason toyota shipped 1.3 million veh to the US last year and combined the domestic's sold around 400 vehicles in Japan!

Free market is great, however it's not a free market when other countries have "taxes" put on your goods and you don't on theirs.
Immediately, Canada and the US should put a VAT on products which brings the price of a product shipped into the country up to par with what it would cost to produce said product here. THEN it would be a pair of cars/pens/shirts for the same price and people would choose what they wanted. Would YOU choose a shirt from thailand with their quality/durability/materials if it cost the same as one made here?? I certainly wouldn't.
(As an aside, there is a 25% tariff on trucks imported to the US, that's why toyota built the truck plant in texas where they ASSEMBLE trucks not BUILD them)

02-22-2009, 08:33 PM	#6
goinbroke2 Senior Member Join Date: Mar 2002 Location: NS CANADA Posts: 900 Likes: 1,686 Liked 404 Times in 158 Posts	Re: GM axes performance division A buddy of mine still wears his NAFTA t shirt that depicts an eagle screwing a beaver. Both Canadian and americans think they got the shaft. I personally think the issue is the fact that every other country has a VAT (Value Added Tax) except the States and Canada on most products. Example: It cost $15,000 to build a car in north america and you sell it for $20,000 you make $5,000 In other countries though it only cost $10,000 to build, $1,000 to ship and sell for $15,000 making $4,000 and undercutting the very economy you ship to! Here's what's worse, cost $15,000 to build in NA, $1,000 to ship to asia/europe and add 25% VAT = $20,000 which doesn't include any profit!! Remember they built for $10,000? That is one reason toyota shipped 1.3 million veh to the US last year and combined the domestic's sold around 400 vehicles in Japan! Free market is great, however it's not a free market when other countries have "taxes" put on your goods and you don't on theirs. Immediately, Canada and the US should put a VAT on products which brings the price of a product shipped into the country up to par with what it would cost to produce said product here. THEN it would be a pair of cars/pens/shirts for the same price and people would choose what they wanted. Would YOU choose a shirt from thailand with their quality/durability/materials if it cost the same as one made here?? I certainly wouldn't. (As an aside, there is a 25% tariff on trucks imported to the US, that's why toyota built the truck plant in texas where they ASSEMBLE trucks not BUILD them)