Car importers question the US Senate’s proposal to give $10,000 credit to people who would hand over their old motor vehicles in exchange for newer, more fuel efficient models.
This proposal is tagged the Harkin-Stabenow amendment, and most US lawyers have reason to believe that it violates important aspects of the World Trade Organization rules, as well as the North American Free Trade Agreement
Car manufacturing and dealing companies are fearful about the effects of this move on the US economy. With the new amendment, there’s a big possibility that car sales will drop drastically this year. The US happens to hold a big chunk of the world’s car manufacturing industry.
The other side of the coin
On the plus side, a lot of environmentalists and households are excited about the immediate effect of this amendment. Most people refuse to hand-over their 10-year-old faithful for newer, cleaner models simply because they can’t afford to pay for a new car.