Financial Times: US Car Aid Plan Irks Trading Partners
Washington, D.C., partner Elliot Feldman, leader of Baker Hostetler's international trade practice, was quoted in an August 4, 2009, Financial Times article, "US Car Aid Plan Irks Trading Partners."
According to the article, the U.S. House of Representatives has inserted an amendment into the 2010 energy and water appropriations bill which stipulates that "none of the funds made available in this act may be used to purchase passenger motor vehicles other than those manufactured by Ford, GM or Chrysler." The amendment has sparked complaints of protectionism and a flurry of lobbying activity aimed at ensuring its removal. Trade lawyers say the amendment is unusual in naming companies that can receive contracts and violates World Trade Organization rules, according to the article.
Feldman said the "big three" amendment "goes beyond Buy American" by naming companies. "I think the administration will say 'we can't do this' and it won't survive, but it shows where the sentiment is going," he said. He added that, because the U.S. government had taken stakes in both GM and Chrysler, it was arguably already subsidizing their cars.
Click to read the full article from the Financial Times website [readers may be required to register (free) to view the full article].