How much policy space still exists under the WTO? A comparative study of the automotive industry in Thailand and Malaysia

Abstract

This paper investigates the policy space open to developing countries under the WTO regime. It is apparent that industrial policy options in developing countries are limited by the TRIPs, GATS, TRIMs and SCMs agreements under the WTO. However, policy options are not fully closed, and a narrower range of policies is still available. Focusing particularly on TRIMs, this paper examines the contrasting development of the automotive industries in Thailand and Malaysia, showing the different ways these countries have carved out new industrial policies within the now available policy space.

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