France wants to check if U.S. car aid fits world trade rules

[DainBramaged]

France wants U.S. aid to the car sector to be checked to see if it fits World Trade Organization rules, President Nicolas Sarkozy said, escalating tensions over rival industrial policies.

Sarkozy, who has announced aid for French automakers that critics have called protectionist, also said he would ask for a coordinated European plan to help the car industry.

"We need to see if the U.S. aid is compatible with the WTO," Sarkozy said at a roundtable discussion in eastern France on the car industry on Thursday.

Leaders of the European Union will meet in Brussels on Sunday to discuss coordinating responses to the financial crisis and Sarkozy said he would ask for an EU-wide car plan.

Europe's automakers have warned that the region's car producers might need up to 15 billion euros in financial help during the economic crisis.

EU competition authorities are scrutinizing car industry support from governments in France, Spain, Britain, Italy, Germany and Sweden.

Earlier this month Sarkozy faced criticism from his EU allies for a 6 billion euro ($7.64 billion) state loan offered to Renault and PSA/Peugeot-Citroen in return for an unwritten pledge not to close production sites in France.

Separately, European Transport Commissioner Antonio Tajani said Europe's lawmakers would consider appealing to the WTO if U.S. aid made conditions unfair for European manufacturers.

Europe is evaluating appealing to the WTO if the U.S. auto bailouts "should impinge on the competitiveness of our producers," Tajani told the Italian paper La Stampa.

http://www.autonews.com/article/20090227/COPY01/302279968/1193


HAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHAHA

[ConcernedCanuk]

1. Ask us Canuks in the lumber business about WTO rulings and the USA

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5 years the USA ignored WTO rulings in Canada's favor

Then Harper let the USA off one BILLION dollars short of the claim/award.

Our local lumber mill just closed PERMANENTLY this month

Good luck getting the USA to honor global commitments

President Obama - we are hoping to see

CHANGE . . .

[pampango]

2. There's a Reuters article dealing with the same issue.

http://uk.reuters.com/article/motoringAutoNews/idUKLQ49988620090226

"The Italian commissioner said that, with countries around the world providing incentives for their industries to protect national production and jobs, certain countries giving their own manufacturers an unfair advantage should be avoided.

I know that the auto industry is not healthy in Europe, or anywhere else, right now, but it not just "certain countries" shouldn't give "unfair advantage". If countries have agreed not to give "unfair advantage" then all those countries should follow the rules they have agreed to, not just "certain countries". A country can appeal to the WTO if they think that mutually agreed upon rules are being violated, but be wary casting the first stone.

"Nobody can stop cars made in another country from being sold inside their borders. That would be protectionism," Tajani said."

Unless I have missed something, there has been nothing in the auto industry rescue plan other than loans and plans to restructure the industry. The efforts constitute providing the oxygen needed to keep the domestic industry alive, not to keep out foreign cars.

"Already car industry support schemes within France, Spain, Britain, Italy, German and Sweden are being scrutinised by EU competition authorities."

Obviously there are concerns about "unfair advantage" in many countries not just "certain countries". Apparently those support schemes (including France's) are being checked out, while they are checking out US compliance with WTO rules. What's good for the goose, is good for the gander.

""If we defend ourselves from this outside the EU, we can't permit it internally," said Tajani, adding that this would be on the agenda at next Sunday's EU crisis summit in Brussels."