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Understanding the Infant Industry Argument: A Legal Perspective
Definition & Meaning
The infant industry argument is an economic concept that supports the protection of emerging domestic industries through government assistance and intervention. This approach aims to create a fair competitive environment between newer, less developed industries and established, advanced industries that produce similar goods. The argument suggests that temporary government protection is beneficial to help these industries grow and become competitive. Once they reach a certain level of maturity, the market forces should be allowed to operate freely without government interference.
Table of content
Legal Use & context
This term is primarily used in the context of international trade and economic policy. It is relevant in areas such as trade law, economic development, and industrial policy. The infant industry argument may involve legal frameworks that allow governments to impose tariffs or subsidies to protect domestic industries. Users can manage related legal documents and forms through resources like US Legal Forms, which provide templates drafted by attorneys to assist in compliance with trade regulations.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
One example of the infant industry argument is the protection of the solar panel manufacturing industry in the United States. The government imposed tariffs on imported solar panels to help domestic manufacturers grow and compete against established foreign companies. This protection aimed to foster innovation and job creation in the renewable energy sector.
(Hypothetical example) A developing country may implement subsidies for its textile industry to help local manufacturers compete against well-established international brands. This support could include financial assistance and training programs to enhance production capabilities.
Comparison with related terms
Term
Definition
Key Differences
Infant Industry Argument
Support for protecting new domestic industries through government intervention.
Focuses on temporary protection for emerging industries.
Protectionism
Economic policy of restricting imports to protect domestic industries.
Can be broader, not limited to infant industries.
Subsidy
Financial support from the government to promote economic activity.
A specific tool often used within the infant industry argument.
Common misunderstandings
What to do if this term applies to you
If you are involved in a new industry that may benefit from government protection, consider researching available subsidies or tariffs that could support your growth. Utilize resources like US Legal Forms to access templates for necessary legal documents and applications. If your situation is complex, seeking advice from a legal professional may be beneficial.
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