Are Industry Bailouts Legal?

Aren’t the bailouts of industries by the US government a form of subsidies?  I thought those were supposed to be phased out according to international trade agreements.  Doesn’t the World Trade Organization, the North American Free Trade Agreement, and similar trade agreements with the United States threaten sanctions against member countries that introduce new subsidies to protect domestic industries?

The bailouts of the American auto industry and the American financial industry obviously help American businesses compete agianst foriegn businesses.  What will prevent those treaty members from suing for damages or sanctions as a result of the market warping subsidies given by the US government to American businesses?


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