If they're not going to get you on the front end, they'll get you on the back end. That's what the European Union is accusing the Russian government of doing with automotive trade restrictions, and the US appears to agree, Reuters reports. The US is joining the EU in a World Trade Organization (WTO) claim that Russia is violating trade agreements by imposing an auto-recycling fees on cars imported into the country.
World Trade Organization
Automotive News China reports the United States is set to file a complaint with the World Trade Organization against China for tariffs on American-built vehicles. The duties cover around 80-percent of the vehicles imported from the U.S. and are expected to cost U.S. automakers $3.3 billion. Interestingly enough, General Motors and Chrysler vehicles face higher tariffs than those of other automakers due to the government bailout those manufacturers received under presidents George W. Bush and Bar
It's not a secret that China has a near stranglehold on the world's supply of rare earth metals, but when President Obama spoke out against that country's control of the market today, the information probably spiked a bit on people's "is that true?" meters.
Chinese-market 2010 Buick Regal – Click above for high-res image gallery
The European Union made noises last year about having the WTO verify that the U.S. auto industry assistance package doesn't violate any international trade rules. Now French President Nicolas Sarkozy has said he will ask the World Trade Organization to stick their hands into the matter.
The US Congress is contemplating a bailout of $25 billion or more for US automakers, and the European Union is watching closely. European Commission President, Jose Manuel Barroso, told Europe 1 Radio that he is prepared to rat out the US government to the World Trade Organization if the EU considers the bailout illegal.