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

Agent009 submitted on 11/21/2008 Official Bell & Ross Timestamp: 2:33:01 PM

12 user comments | Category: Misc News | Source: | SOURCE: www.bloomberg.com

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

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Agent009

"If everything seems under control, you're just not going fast enough."

— Agent009 (View Profile)


User Comments

GreenPlease

That's why trade agreements are BS. Why doesn't the U.S. file a complain with the WTO against China and Japan for devaluing their currencies? Honestly?

— GreenPlease (View Profile)

Posted on 11/21/2008 4:24:39 PM | reply to this comment | Votes: 2   

1995e34

or complain that the other automakers don't have to pay nearly as high health care costs.

— 1995e34 (View Profile)

Posted on 11/22/2008 6:22:11 PM | | Votes: 2   

woood

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

— woood (View Profile)

Posted on 11/23/2008 7:43:02 AM | | Votes: 1   

mini22

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.

— mini22 (View Profile)

Posted on 11/21/2008 5:26:47 PM | reply to this comment | Votes: 2   

dlin

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.

— dlin (View Profile)

Posted on 11/21/2008 9:40:30 PM | reply to this comment | Votes: 2   

hasterterber

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.

— hasterterber (View Profile)

Posted on 11/21/2008 10:13:29 PM | reply to this comment | Votes: 1   

1995e34

but which country isn't already subsidizing their auto industry?

— 1995e34 (View Profile)

Posted on 11/22/2008 6:25:45 PM | | Votes: 1   

1UAW

Yes we are being fair not only are the US automkers at a huge disadvantage anything made in the US is hard to market over seas but our country is flooded with imported goods cuasing the the Trade Deficite to go out of control.

— 1UAW (View Profile)

Posted on 11/22/2008 2:34:57 AM | reply to this comment | Votes: -1   

mini22

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.

— mini22 (View Profile)

Posted on 11/22/2008 12:44:49 PM | reply to this comment | Votes: 2   

woood

Not gonna happen with WTO.

— woood (View Profile)

Posted on 11/23/2008 7:45:07 AM | | Votes: 1   

1UAW

Our standard of living needs to be protected, evry one wants the american worker to make $2 an hour, and keep the prices of goods at a high rate.

— 1UAW (View Profile)

Posted on 11/22/2008 12:49:56 PM | reply to this comment | Votes: 2   

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