Stevan attended the 2012 WTO Public Forum in Geneva where he represented The University of Western Sydney. He is currently studying a Bachelor of Business and Commerce and is working extensively with Australians from migrant backgrounds.
The paper will examine the role of government policy in synthesising adherence to WTO principles while supporting deteriorating industries. Are these agendas reconcilable under an amalgamated trade policy or are the two an incompatible polarity? This essay provides some insight to the subject through a case study of Passenger Motor Vehicle (PMV) industry. The particular appeal of this sector lies in its far-reaching political implications, extensive media power and powerful labour union presence. Has the PMV industry suffered as the result of multilateral and unilateral trade policies and the removal of government assistance?
The essay contends not only that many problems PMV manufacturers face are economically inevitable but self-inflicted; it maintains that all claims for culpability of trade liberalisation are versions of the same falsity. The research reaffirms the decline is caused by fluctuation of macroeconomic variables: currency appreciation; increase in price of major inputs: iron and steel; competitiveness of foreign imports; diminishing domestic and global demand; and most importantly, insensibility to shifting consumer and market trends. Further it reasserts the significance of PMV industry in technological innovation. The essay proposes that there is a logical solution: Australian government can simultaneously provide appropriate support to the PMV sector and adhere to WTO agreements. The industry should be assisted through WTO-friendly, non-trade restricting polices, in particular research and development subsidies.Read More