The protection of the automobile industry in Europe and Mercosur

Vol. 18 No. 4 (1998)

Oct-Dec / 1998
Published October 1, 1998
PDF-Portuguese (Português (Brasil))
PDF-Portuguese (Português (Brasil))

How to Cite

Jr., José Tavares de Araújo. 1998. “The Protection of the Automobile Industry in Europe and Mercosur”. Brazilian Journal of Political Economy 18 (4):499-514.

The protection of the automobile industry in Europe and Mercosur

José Tavares de Araújo Jr.
Consultor da Unidade de Comércio da Organização dos Estados Americanos. Rio de Janeiro/RJ, Brasil.
Brazilian Journal of Political Economy, Vol. 18 No. 4 (1998), Oct-Dec / 1998, Pages 499-514


The auto industry is an international oligopoly that has a long tradition of influencing
trade negotiations and national policies. Due to the industry’s size and production
linkages, the investment decisions made by the assembly firms often generate economic consequences
that can be easily transformed into political power. This paper discusses the rules
implemented by the European Union during this decade to face this challenge, highlights the
differences in regard to the measures applied by the Brazilian government since 1995 and
suggests that the European policies are especially suitable for Mercosur.

JEL Classification: L52; L62; L13; F13.

Keywords: Industrial policy protectionism oligopoly auto industry