The protection of the automobile industry in Europe and Mercosur

The auto industry is an international oligopoly that has a long tradition of influencingtrade negotiations and national policies. Due to the industry’s size and productionlinkages, the investment decisions made by the assembly firms often generate economic consequencesthat can be easily transformed...

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Bibliographic Details
Author: Jr., José Tavares de Araújo
Format: article
Status:Published version
Publication Date:1998
Country:Brasil
Institution:EDITORA 34
Repository:Revista de Economia Política
Language:Portuguese
OAI Identifier:oai:ojs2.centrodeeconomiapolitica.org:article/1148
Online Access:https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1148
Access Level:Open access
Keyword:Industrial policy
protectionism
oligopoly
auto industry
Política industrial
protecionismo
oligopólio
indústria automobilística
Description
Summary:The auto industry is an international oligopoly that has a long tradition of influencingtrade negotiations and national policies. Due to the industry’s size and productionlinkages, the investment decisions made by the assembly firms often generate economic consequencesthat can be easily transformed into political power. This paper discusses the rulesimplemented by the European Union during this decade to face this challenge, highlights thedifferences in regard to the measures applied by the Brazilian government since 1995 andsuggests that the European policies are especially suitable for Mercosur. JEL Classification: L52; L62; L13; F13.