THE collapse of world trade talks could be a boon to Australia's ailing carmakers, making it easier for the government to keep tariffs on imported cars, an analyst said on Thursday. The comments came as Australia's left-leaning Labour government received a report into the car industry, with manufacturers and trade unions urging it to slow planned tariff cuts in order to protect the sector and 60,000 local jobs. Australia is a strong supporter of free trade and pushed for a successful conclusion to the World Trade Organisation's long-running Doha round of trade talks, which are designed to free up world trade but which collapsed on Tuesday. Australian Prime Minister Kevin Rudd is being urged to keep protection for the automotive industry, which is under pressure from falling domestic sales and a rising Australian dollar which is making imported cars cheaper. Carmakers build about 320,000 vehicles in Australia each year and employ about 60,000 people, accounting for about 6% of Australian manufacturing. But Australia has long-standing legislation which will cut tariffs on imported cars from 10% to 5% in 2010. "The natural inclination in the political world is ao retreat to isolationism," Economou, from Melbourne's Monash University, told Reuters on Thursday. "Australia won't be embarrassed by a (different) tariff decision now the WTO has fallen over again." "I think Rudd and Labour are going to continue with the tradition of being free traders, but not when it comes to the car industry," Economou said, adding tougher global economic conditions have made countries more wary of free trade. Concerns over the Australian industry's future were sparked after Mitsubishi Motors Corp. closed its plant in Adelaide, capital of South Australia state, earlier this year. That left only three car makers, local subsidiaries of Ford Motor Co, Toyota Motor Corp and General Motors Corp, who export a large number of their Australian-made vehicles and car components. Soon after winning power last November, Rudd set up a review of the car industry and government support for it headed by Steve Bracks, the former Labor premier of Victoria state. Bracks handed his final report to the national government on Thursday. The government will keep the report secret until it decides on its response but is determined to maintain a "vibrant" car manufacturing industry. On top of tariffs, Australian manufacturers are also protected by hefty duties on imported used cars, and higher taxes on luxury cars, as well as government subsidies to promote the production of hybrid and fuel efficient cars. But car-mad Australia still imports about 850,000 new vehicles a year, keeping pressure on locally made car sales. The Australian newspaper said on Thursday Bracks's report would recommend that the government slow the tariff cuts, with a gradual reduction to 5% over five years from 2010.