Posts Tagged ‘Protectionism’

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Monday, January 25th, 2010

Protectionist actions among countries have garnered a lot of attention over the past year, but how about protectionism between school districts within the same state?

In the past, California school districts such as the one in Beverly Hills welcomed students from outside its locale, since the district accepting the students received a payment of $6,239.00 per student from the state. With recent cutbacks in state funds for education, Beverly Hills has told its roughly 400 out-of-district students to either rent an apartment in the boundaries of the district or find another place to go to school. (New York Times, 1/14/10)

A statement by one Beverly Hills parent seems relevant: “This is a community trying to take care of its own, and there is nothing wrong with that.” That thought reflects an emerging protectionist attitude being encouraged by a sense of scarcity.

Charles Hess

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Posted in Protectionism, State and Local Governments | 1 Comment »

Japan’s Cash-for-Clunkers: De Facto Protectionism

Tuesday, December 29th, 2009

Japan is running a Cash-for-Clunkers-type program through September 2010, which pays $2,778 to buyers who replace cars that are at least 13 years old with cars that meet Japan’s 2010 emissions standards.  Buyers with no trade-in will get $1,111 if their purchase beats those 2010 standards by at least 15 percent.  Japan allows foreign car companies to sell in Japan as long as those cars meet the fuel-standards of their home countries.  However, only cars that are tested to Japan’s domestic standards are eligible for the rebates.   Since U.S. car exports to Japan are tested only under U.S. rules, not Japan’s, none will be eligible for the rebate. (Automotive News, 12/21/09)

While Japanese automakers sold 319,342 vehicles – more than one-third of them imported – under the U.S. cash-for-clunkers program this year, U.S. brand vehicles will not qualify for the Japanese program.  Protests by the Office of the U.S. Trade Representative have been met by Japanese government declarations that the program is fair.  In the context of “There’s a Lot Resting on Growth,” which we have discussed in recent client meetings, protectionism is one of the potential global economic destabilizers we have described.  Are the rules of the Japanese car rebate program a way of sneaking in de facto protectionism in response to their rising currency?

Risa Hess

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Posted in Automotive, Japan | No Comments »