The Changes of National Automobile Industry Policies after Joining the World Trade Organization


Japan: Joining Force to Develop National Vehicles in 1955 Japan established a strategy for the development of "national vehicles." In 1956, the output exceeded 100,000 units; in 1963, the output exceeded one million units; in 1966, the output exceeded 200 million units. The Japanese government has adopted a dual policy of supporting and protecting the development of the automobile industry. On the one hand, it controls the entry of foreign cars into Japan and, on the other, enhances the company's international competitiveness. The national protection policies are: protective tariffs (before 1968, the import tariff rate of cars is 30%), the implementation of a favorable tax system for domestic cars: the use of foreign exchange quotas to limit imports, and foreign exchange restrictions. The sub-executive policies include the provision of low-interest loans by government agencies, the provision of subsidies, special depreciation, the exemption of import duties on required equipment, and the introduction of required technologies. In 1965, Japan’s total automobile production was 1.8 million, of which 700,000 were passenger cars, but the tariff remained at 30%. South Korea: In 1967, it banned the import of Japanese cars. The self-restraining rate of South Korea's vehicle products in 1967 was 21%; in 1971 it rose to 50%; in 1980, the self-restraint rate of small-displacement cars reached 93.5%, and the self-made rate of mid-range cars was 69.4. %, 90.4% for general buses, 67.7% for high-speed buses, and 79.5% for trucks. In 1986, the self-manufacturing capabilities of "Kia" and "modern" automobile manufacturers were 67.7% and 67.4%, respectively. Before the 1980s, due to lack of domestic purchasing power, South Korea took a passive attitude toward imports. The policy was reflected in the following: In 1962, the import of whole vehicles was banned and the automobile industry support law was established; in 1972, the "rationalization measures for the automobile industry" was announced, the automobile industry was placed under strict national control, and after several mergers, "modern" was developed. There are three companies, Daewoo and Kia. In 1973, the Ministry of Industry and Commerce of the country proposed to develop models not available in the domestic market. Although South Korea later allowed the import of automobiles, it adopted a high tariff policy, and also collected many other tax items such as special consumption tax, special indirect taxes, etc., and manufactured domestic public opinion atmosphere “to use domestic cars” to counteract imports. , to stimulate the consumption of domestic cars. After 1975, the Korean automotive industry began to develop at a high speed. In 1980, the country’s auto production exceeded 100,000 units, and in 1985 it approached 400,000 units. The products have been exported to more than 40 countries and regions in the world, including North America and Western Europe. Under the pressure of the world's automotive industry, South Korea had to open its own market, but adopted a policy of phased import liberalization. However, import of Japanese cars is still prohibited. The United States: The Import Policy of Joining Xiansong in 1947 At that time, the United States produced 5 million cars, which accounted for 80% of the world's total production. The U.S. automobile import and export system is quite liberal. It not only does not exclude imports, but also has low import tariffs. In 1950, it imported 20,000 vehicles and exported 250,000 vehicles. In 1960, the situation changed, importing 500,000 vehicles and exporting 320,000 vehicles. In 1970, it was imported 2.5 million vehicles and exported 800,000 vehicles. The import-export ratio was 2.5:1. After the 1980s, the ratio of imports and exports was changed to 4.5:1. Due to competition from foreign products, the U.S. government is in the process of protecting its own economy and has started to impose strict restrictions on imported cars, especially restrictions on Japanese cars. In addition, a strict import certification system has been implemented, and all products that do not comply with the requirements of the United States emission regulations are not allowed to enter the US market. The EXCEL of Korea Hyundai Motor Co., Ltd. has delayed entering the US market because it did not comply with US emission regulations. Brazil: The localization rate must be increased to 85% in 1948. In 1907, Fiat's products were manufactured using licenses. In 1919 and 1924, “Ford” and “General Motors” were established in Brazil to produce cars. Before the mid-1960s, it grew at a rate of 10% annually. By 1988, Brazil had been ranked eighth in the world's top ten cars. In the foreign trade system, Brazil has implemented strict "import quantity control", such as the "import quota system", "the import of priority commodities and the ban on the import of goods," and the "import license system." Prior to 1985, the import tariff on cars was 200%, and imports from Latin American countries were 100%; after 1990 it was reduced to 40-85%; in 1991 it was reduced to 20%. From joining GATT in 1948 to June 1990, vehicle imports have been banned. Since July 1, 1990, although it is possible to import with an import license, it still implements a high tariff system. With regard to the national production rate, the Brazilian government has strict requirements, and all cars produced in Brazil must have a rate of 85% for parts and components.

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