Brazilian trade policies between 1994 and 2014 and its effects on productivity of the automotive industry

This article analyzes protectionist measures adopted by Brazilian trade policy between 1994 and the present and possible impacts on productivity of domestic industry and welfare. To limit the scope of this paper, object is the automotive industry due to its outstanding economic importance and contribution to the development of the country. After a short presentation of the main protectionist measures in the world, aspects of productivity in general a brief summary of the automobile industry in Brazil is exposed. Thereafter, the most common protectionist measures as part of Brazilian foreign trade policy, in particular exchange rate, tariff and non-tariff policy and its possible impacts on the productivity of the automotive industry and welfare in the country are discussed