Are We Being Fair? US Automaker Bailout Raises WTO Legality Concerns

A US triggered spate of global carmaker-bailout proposals may spark trade disputes over whether the Americans are unfairly trying to subsidize their industry or just making up for state aid foreign rivals already enjoy.

As the U.S. considers a lifeline for its automakers, officials in Europe, Canada and Asia are considering their own aid packages -- even as the European Union threatens to lodge a complaint against any U.S. bailout to protect manufacturers from Renault SA in France to Fiat SpA in Italy.

China also may complain, though the government is considering helping SAIC Motor Corp. and Guangzhou Automobile Group Co.

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woood - 11/23/2008 7:43:02 AM

+1 Boost

Thats what free trade is all about. The US authored it. Unfortunately, it is working against the US now.

mini22 - 11/21/2008 5:26:47 PM

+2 Boost

I do not see how their complaints would hold much water. Frankly for China to complain is a total joke!To allow for the our largest manufactoring base to fial in order to satisfy the WTO sounds suicidal to me.

dlin - 11/21/2008 9:40:30 PM

+2 Boost

Don't forget WTO doesn't come from China or third world country.

I'll say back to the market. Time for some high-paid idiots to step down.

hasterterber - 11/21/2008 10:13:29 PM

+1 Boost

Trade agreements are not BS. I worked in the WTO so I know what im saying. It is totally fair to complain and to go to the diferences resolution comittee if the US subsidized their industry, from that, to the über long time it takes to sove said disputes is a nother story haha. But the thing is it is not fair for this distorts trade practices (the subsidy I mean) and countries that have higher tarifs have so because of a phased out liberalization of their import tarifs, it is fairer this way and was agreed so in the DOHA rounds.

mini22 - 11/22/2008 12:44:49 PM

+2 Boost

I think the US should go back to the 18% import tarifs of the late 70's an early 80's. That would all so apply to any foreign car maker building cars in the US.The American worker needs to be protected.

woood - 11/23/2008 7:45:07 AM

+1 Boost

Not gonna happen with WTO.