16/03/2007 - The federal Labor opposition has come out against any change to Australia's tariffs policy for the car industry, despite last week's job cuts at Holden.

The stand puts it at odds with South Australian Premier Mike Rann who has called for a pause to the tariff cuts planned for 2010.

Opposition deputy leader Julia Gillard said federal Labor did not believe that rebuilding a tariff regime was the way to go.

"We want a free trading economy, we want to be able to get our goods into foreign markets," Gillard told ABC radio in Adelaide.

"That means we enter free trade agreements, bi-lateral, multi-lateral.

"So I really don't think the future lies in rebuilding tariff walls, it's about being competitive."

Last week Holden announced plans to axe 600 jobs at its vehicle assembly plant in Adelaide.

That prompted calls from Rann to put on hold the cut in tariffs on imported cars from 10 per cent to five per cent planned for 2010.