Is protectionism or free trade the best course to protect Australian auto?

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Photo from FLickr by racin jason

After billions in subsidies and other measures, the Australian auto industry is still in strife. Ford has already announced it will exit Australia in 2016, and unless the government significantly increases subsidies then Holden may soon follow. But some Economists worry that Australia’s conflicting strategies of protectionism and free trade may make future subsidies untenable. And despite the auto industry being something we should save, unless we pick one strategy it may be impossible.

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