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Blurred Picture: Trade Policy and Television’s Future in the Dark

In: International Trade Policy and European Industry

Author

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  • Marcel Marion

Abstract

Trade policy and subsidies played an overwhelming role in the demise of the colour television industry in Europe. Origin rules, created for the effectiveness of quotas, were blindly applied to situations for which the rules were not intended and even exporters’ fraud was accepted for the sake of calculation of certain parameters in accordance with the rules. The deficiencies in interpretation of the origin rules are explained. During anti-dumping cases, the rules caused serious confusion and harm. Additionally, some European companies preferred short-term benefits from complex trade policy situations to advantages of long-term cooperative behaviour. Various trade policy issues, like definition of the product scope, origin rules, self-inflicted injury, target profit for elimination of profit and complications caused by state-ownership of a CTV producer, Thomson, are discussed in this Chapter. Chaotic, inappropriate and even biased application of the rules finally resulted in the demise of European colour television industry, to which personal interference by officials and European Commissioners strongly but calamitously contributed.

Suggested Citation

  • Marcel Marion, 2014. "Blurred Picture: Trade Policy and Television’s Future in the Dark," Contributions to Economics, in: International Trade Policy and European Industry, edition 127, chapter 0, pages 215-254, Springer.
    • Handle: RePEc:spr:conchp:978-3-319-00392-4_11
    DOI: 10.1007/978-3-319-00392-4_11
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