'Bailout' of General Motors didn't break WTO rules
Ref: "Global playing field far from level", Letters, January 6.
Sir Winston Churchill said in 1947 that no one pretends that democracy is perfect or all wise. In fact, it is the worst form of government except for all the others that have been tried. Similarly, though the new global rule for global cooperation is not perfect and subject to ongoing criticism, in substance it has worked to the benefit of the human race.
It is good to have Guy Baker's reminders of the unevenness of the players in this global field if his facts are correct and not one-sided against one nation. America was never viewed as faultless in its treatment of American Indians but neither was Australia with Aborigines. Both cannot go back and amend history. But both have apologised and improved their moral standards.
In the case of General Motors, the US Treasury did not break the WTO rules in the bailout. It was not a subsidy to GM for unfair pricing but was paid to become the largest stockholder of GM, a near bankrupt company.
Recently, shares of the previous bailout company, AIG, were sold by the US Treasury for a gain of US$22 billion when AIG had turned the corner and become profitable. What has that to do with the WTO? On the contrary, the world should applaud the US for revitalising its near-collapsed resources.