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June 01, 2009

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John Frewen-Lord

Just how much of this government aid falls foul of WTO rules? Funny how America, lead by Boeing, brings major trade disputes to WTO regarding government 'subsidies' to Airbus (in reality repayable loans, not subsidies), but has no compunction about doing the same when one of its own (GM) need a bit of government help.

Still, the record of government aid to the auto industry is not good (just look at the disaster for the UK from the '70s to 2000 - all money wasted, all aided companies gone), and it remains to be seen if this aid is simply delaying the inevitable.

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