M.B.A. / According to du Plessis et al., (1994:67), the history of protectionism in trade goes almost as far back as that of trade itself. There are various arguments for the numerous benefits, which can be gained from free trade such as, efficiency and welfare gains. But, despite these benefits, governments have had counter arguments as to why protectionism is justified. Examples of these traditional arguments for protection are, the infant industry argument, the terms of trade argument, protection to increase employment in an industry, a tariff to offset foreign dumping and a tariff to improve the balance of payments. All of these arguments have important gains for the protected economy but could be considered beggar-thyneighbour policies since they are at the expense of the unprotected economy. Various trade instruments are used by governments to intervene in its countries trading activities. These trade instruments are categorised into, tariff, non-tariff barriers and export taxes and subsidies. Both tariff and non-tariff barriers are used to interfere on the import side of trade, whereas export subsidies and taxes are used to interfere with the free flow of exports. Tariff barriers include specific tariffs, ad valorem tariffs, import subsidies, preferential duties, most-favoured nation treatment and offshore assembly provisions. Nontariff barriers include import quotas, "voluntary" export restraints, government procurement provisions, local content provisions, administrative classification and restriction on service trade (du Plessis et al.,1994:67-70). An example of a protected industry in South Africa is the motor industry. The initial protectionist programmes used by the motor industry were characterised by local content policies. These programmes resulted in a heavily protected motor and component industry. In recent years, policymakers have attempted to reduce the level of protection in the industry through the Motor Industry Development Programme (MIDP), in line with the General Trade and Tariff Agreement (GATT). This programme is not only attempting to reduce the use of trade instruments but, also to become globally competitive. This dissertation attempts to evaluate the effects that protectionism, in the form of the Motor Industry Development Programme, has had on the Motor Industry's component suppliers.
| Identifer | oai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:uj/uj:9105 |
| Date | 13 August 2012 |
| Source Sets | South African National ETD Portal |
| Detected Language | English |
| Type | Thesis |
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