International Trade Policy and European Industry: The Case of the Electronics Business

475 Pages·2014·3.503 MB·English

by  Marcel van Marion (auth.)

Contributions to Economics
Marcel van Marion
International
Trade Policy and
European Industry
The Case of the Electronics Business
Contributions to Economics
For furthervolumes:
http://www.springer.com/series/1262
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Marcel van Marion
International
Trade Policy and
European Industry
The Case of the Electronics Business
MarcelvanMarion
Eindhoven
Netherlands
ISSN1431-1933
ISBN978-3-319-00391-7 ISBN978-3-319-00392-4(eBook)
DOI10.1007/978-3-319-00392-4
SpringerChamHeidelbergNewYorkDordrechtLondon
LibraryofCongressControlNumber:2013941991
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Preface
Thewritingofthisbookwasinitiatedbytheunderstandingthatmanydevelopments
in the electronics business have remained unexplained or will be forgotten. An
account of practical experience related to trade policy and trade policy rules may
alsobelost.SomesectorsofEuropeanbusinesshavedisappeared.Thatwouldnot
be a disaster if ignoring some facts would not cause repeated catastrophes.
According to the rules of probability, such disasters do not occur twice at the
samespot.Thismaybecorrect.
Almost25yearsofpracticeintheelectronicsbusiness,withPhilipsElectronics,
andintheboardsofindustryassociationsplusanadditionalperiodasaprivatetrade
policy counsellor rendered me experience in the use of trade policy instruments.
This book is a report on my experiences in this domain. Often it describes
adventures that have gone astray in the jungle of rules and politics. It describes
victoriesanddefeatsinthearenaofinternationaleconomicrelations.Defeatshave
truncatedtheindustryandreducedtheneedfortradepolicyrepresentation.
IthankmanypeopleatPhilipsforgivingmetheopportunitytobeatthecentreof
manyeventsofinternationalrelations.MembersoftheboardofPhilipsElectronics
entrustedmewithsomeinteresting,evenfascinatingtasks.
ExtremelyimportantwerethoseamazinglyfewmembersofthestaffofPhilips’
Bureau for International Economic Relations who contributed to some of the
episodessketchedonthepageshereafter.IwouldliketomentionKarineHustinx,
Diny Janssen, Casper Garos, Wicko van Haalen, Frank Smits and Andre´ Rhoen,
brilliantanddedicatedpeople,whomadeaformidablecontributiontotheadvance-
mentoftheinternationalrelationsofPhilipsandtheindustry.
Companion in arms, Henri Anus, former de´le´gue´ ge´ne´ral of the French
Simavelec, offered his friendship and fine cooperation in the many years that I
workedonbehalfoftheEuropeanelectronicsindustryandprovidedmewithsome
supplementarydocumentsusedinthisbook.
IamgratefultoEdwinVermulst,thisworthyopponentinvariousanti-dumping
cases,giftedwithanexceptionalknowledge–causingenvy–ofinternationaltrade
law,forhisencouragingremarksandparticularlyfortheintellectuallystimulating
v
vi Preface
discussionsovertheyears,althoughweoftenfoundourselvesondifferentsidesof
thefence.
FritsBolkesteinearnsmylastinggratitudeforhisfriendshipandencouragement
duringimportantstagesofmycareer.
Showingherintellectualgraspofthemattersdescribedinthebookandthanksto
herquickmindandefficiency,MaeganMcCannhasmadeaninvaluablecontribu-
tionbyeditingandpolishingtextsthatneededimprovement.Ithankherforit.
And last but not least, and in contrast to the Windhundverfahren in export
licensing–firstcome,firstserved,asdescribedinSect.3.3ofthisbook–Iexpress
my gratitude to my dear wife Anja, who gave a solid base to the project and has
patientlywaiteduntilthecompletionofthisbook,encouragingmeandrequesting
tobeprudentinthetexts,probablyknowingthatsheaskedfortheimpossible.
June2013 MarcelvanMarion
Abbreviations
ADA Anti-DumpingAgreement,AgreementonImplementationof
ArticleVIoftheGeneralAgreementonTariffsandTrade1994
ALARM AssociationforLegalAutoRadioMeasures,Temporary
EuropeanAssociationofCarAudioProducers
ANIE AssociazoneNazionaleItalianodell’IndustrieElettrotecnicheed
Elettroniche,ItalianElectroTechnicalandElectronics
Association
BCG BostonConsultingGroup
Benelux BelgiumNetherlandsandLuxemburg(EconomicUnion)
BREMA BritishRadioandElectronicEquipmentManufacturers’
Association
BTS BroadcastTelevisionSystems(aBoschPhilipsJointVentrue)
CAP CommonAgriculturalPolicy
CCC CommunityCustomsCode
CCC CustomsCooperationCouncil,predecessoroftheWCO
CFL-i CompactFluorescenceLampsIntegrated(Electronic)
CIAJ CommunicationsIndustryAssociationofJapan;now:
CommunicationsandInformationNetworkAssociationofJapan
CIF SellerMustPaytheCosts,InsuranceandFreighttoBringthe
GoodstothePortofDestination.
CN CombinedNomenclature:CodesandProductDefinitionsfor
CommonCustomsTariffandoftheExternalTradeStatistics
COP CostofProduction
EACEM EuropeanAssociationofConsumerElectronicsManufacturerts
ECSC EuropeanCoalsandSteelCommunity
EEC EuropeanEconomicCommunity
EECA EuropeanElectronicComponentsManufacturers’Association
EFTA EuropeanFreeTradeArea
EIAJ ElectronicsIndustryAssociationofJapan
EPR EffectiveRateofProtection
ESL EnergySavingLamp
vii
viii Abbreviations
Fabrimetal BelgianFederationofMetalandElectricalIndustry,Since2000
Agoria
FME FederationofMetalandElectricalIndustry(intheNetherlands)
FOB FreeonBoard:TheSellerMustLoadtheGoodsonBoardthe
VesselNominatedbytheBuyerandBearCostsIncluding
Loading
GATT GeneralAgreementonTariffsandTrade
GEC GeneralElectricCompanyLtd,AUKElectronicsCompany
HDTV HighDefinitionTelevisionBroadcastingSystem
HiFi HighFidelity,OriginallyMeetingtheStandardofDeutsche
IndustrieNormierung(DIN)45500
HS HarmonizedSystem:InternationalCodeandTariffNomenclature
IC IntegratedCircuit
ITT InternationalTelephone&TelegraphCorp.,laterITTCorp.,
ElectronicsConglomerateBrokenUpin1995
JMEA JapanMachineryExporters’Association(PrivateBranchof
METI)
JVC VictorCorporationofJapan,aSubsidiaryofPanasonic
LGE LGElectronics,FormerlyLuckyGoldStar
LoT LevelofTradeAdjustment(theAdditiontotheCIFValueof
ImportedProductsforCalculationofResalePrice)
MES MarketEconomyStatus
MET MarketEconomyTreatment
METI MinistryofEconomy,TradeandIndustryofJapan,Previously
MITI
MITI MinistryofInternationalTradeandIndustry(ofJapan).In2001:
MinistryofEconomy,TradeandIndustry(METI)
NEC NipponDenkiKabushikiGaisha,NipponElectricCompany,
Limited
NEDC NationalEconomicDevelopmentCouncil(AdvisoryCouncilfor
IndustryDevelopment)(Neddy)
NHK NipponHosoKyokai,JapanBroadcastingCorporation
NME Non-MarketEconomy
NTSC NationalTelevisionSystemCommittee(oftheUSA)
NTT NipponTelephoneandTelegraphCompany
OCT OrdinaryCourseofTrade
OECD OrganisationforEconomicCo-operationandDevelopment
OEM OriginalEquipmentManufacturers,TraderswithOwnProduction
intheSector
OMA OrderlyMarketAgreement
PAL PhaseAlternatingLine
PCB PrintedCircuitBoard
PCN ProductCodeNumber(CodeforaProductwiththeSpecific
Characteristics)
Abbreviations ix
PDO PhilipsDuPontOptical,aJointVentureforOpticalMedia,(CD,
DVD,Magneto-OpticalDiscs)
POETIC ProducersofEuropeanTelevisionsinCooperation,Temporary
AssociationofTelevisionProducers
PPF PlainPaperFax
QR QuantitativeRestriction(Quota)
RCA RadioCorporationofAmerica
RIC RadioIndustryCouncil,aBritishIndustryPlatform
RTC laRadiotechniqueCompe´lec,FrenchpartofPhilipsComponents
Division
SCAN SocietyofCoherentAnti-dumpingNorms,TemporaryEuropean
AssociationofCTVProducers
SCART SyndicatdesConstructeursd’AppareilsRadiore´cepteurset
Te´le´viseur,LaterSIMAVELEC
SEL StandardElektrikLorenzAG,since1979PartofITT,Whichwas
in1988SoldtoNOKIA
SIMAVELEC lesyndicatdesindustriesdemate´rielsaudiovisuelse´lectroniques
SWP SectorWorkingParty(ofNEDC)
TCE ThomsonConsumerElectronics,previouslyThomsonGrand
Public
TMM ThomsonMultiMedia,SuccessortoTCE
TSP ThermoSensitivePaper
TT ThermoTransfer
VCR VideoCassetteRecorders
VCR-TV CombinationsofVideoCassetteRecordersandTelevision
VER VoluntaryExportRestraint
VHS VideoHomeSystem,VideoCassetteFormatIntroducedbyJVC
VRA VoluntaryRestraintAgreement
WCO WorldCustomsOrganisation,SuccessoroftheCCC
WTO WorldTradeOrganisation
ZVEI ZentralverbandElektrotechnik-undElektronikindustrie,Central
AssociationofElectrotechnicalandElectronicIndustry