Coca Cola And The United States

1238 Words Sep 12th, 2015 5 Pages
While trade policies are generally favorable, and are becoming more liberalized, there still exists trade restrictive measures, such as tariffs. The U.S. continues to have one of the lowest tariff rates on its imports, but Pakistan and India have some of the highest, averaging around 50% (World Trade Report 2014, 2015). To circumvent the tariffs, Coca-Cola bought or established operations in these countries so it could distribute its products domestically instead exporting to those countries and encountering the high tariff rates (Bozer, 2012).
Coca-Cola also faces tariffs in France as of 2011. The French tariff, which is being labeled as a tax so as not to appear to be trade-restrictive, is a 1 euro per can tax on sugary sparkling beverages (Watson, 2011). Coca-Cola employed approximately 3,000 French people and had announced its plan to invest $24 million in its Southern France plant at the time the tax was proposed (Abdullah, 2011). The company viewed this tax as a tariff that was aimed directly at Coca-Cola, but France insisted it was not a tariff and was only to fund public health programs (Abdullah, 2011). Despite the company’s protests, the tax was implemented and Coca-Cola has not taken actions to circumvent it yet.
Section VIII
Tariffs and protectionism are methods used to encourage consumption of a country’s domestic products. These measures are put in place by their governments. As has been the theme of this report, the looming uncertainty financially and…

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