Is this a WTO violation:
Senators Tom Harkin (D-IA) and Debbie Stabenow (D-MI) announced that they plan to introduce an amendment to the Senate stimulus package tonight that would help American automakers sell their cars ,while also taking older, less fuel-efficient cars off the road. The Sell Fuel Efficient Cars Amendment would provide a rebate of $10,000 to buyers who trade in a car more than ten years old for a new car assembled in the United States.
No doubt there are good claims to be made under both GATT Article III:4 and SCM Agreement Article 3.1(b). But note that the rebate is tied to "assembly." Assembly could, in theory, be done with all imported parts. My guess is this measure would be found in violation, but it might have to get into a de facto analysis, which could make it a little more complicated. Or am I making this more complicated than it is, and a car "assembled" in the U.S. is a domestic product, which is favored over imported products through the rebate? I suppose it would help if I knew how the Senators were defining "assembled."
