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The protection of the automobile industry in Europe and Mercosur

José Tavares de Araújo ()

Brazilian Journal of Political Economy, 1998, vol. 18, issue 4, 499-514

Abstract: 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.

Keywords: Industrial policy; protectionism; oligopoly; auto industry (search for similar items in EconPapers)
Date: 1998
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