WDET News
- European Union Opposes U.S. Auto Bailout
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Nov 14, 2008Automotive & Business
As the U-S auto industry struggles to garner domestic support for a government bailout…it also faces challenges from abroad. WDET’s Sarah Cwiek reports…
SOQ
European Commission President Jose Manuel Barroso told Europe One Radio that the E-U is closely monitoring plans for U-S government aid to the auto industry. Barroso says if the E-U finds any eventual plan in violation of international trade agreements…it will act to challenge the bailout through the World Trade Organization. Julia Qin (Chin) teaches international trade and finance at Wayne State University’s Law School. She says the W-T-O has rules governing how member nations can subsidize their industries…and prohibiting subsidies if other nations show they will have an “adverse effect.” Qin says the E-U could likely make that case for its automakers…if the U-S proceeds with a bailout:
“In light of proposed government aid for the auto industries…the adverse effect could be that the foreign automobiles would not be able to compete effectively in the U-S domestic market.”
In other bad news for U-S automakers abroad…the Financial Times reports that three European credit insurers have denied coverage to General Motors and Ford suppliers there. G-M and Ford will be two of the largest companies to ever have their coverage terminated. This is Sarah Cwiek…WDET news.