Friday, March 20, 2009

Response to the $5Bn rescue package for Car Parts Makers: The USA decides to "buy American"

Apparently as many as 500 parts-makers are on the brink of collapse. It is clear that, with the $5 billion rescue package announced yesterday, only a few of them will survive.

Which ones? Well, the money is going to be funnelled through GM and Chrysler, which will decide the parts-makers to whom the money will be given as well, as the conditions under which the money will be given.

GM and Chrysler themselves have an important condition imposed on them by the US Government regarding how they are to use the money: they are limited to using it for U.S.-made parts!

I wonder which country is going to cry "Foul!" first, and take the US to the WTO "xourt" for infringement of global competition rules.

In any case, we will now see every country feeling a little more free to subsidise its own industries, from the EU's cars to the computer chip manufacturers of the Far East.

The subsidy-game is suddenly "ON" again: all pork barrellers are welcome, and pork barrelling is fashionable once more! Sphere: Related Content

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