France: Does U.S. Car Aid Meet World Trade Rules ?

Washington DC February 27, 2009; The AIADA newsletter reported that France wants U.S. aid to the car sector to be checked to see if it fits World Trade Organization rules, French President Nicolas Sarkozy said yesterday, 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.

According to Automotive News, 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.

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.