The linked article reports that Toyota is likely to report a loss in their 2nd half (the October 2008 – March 2009 time frame). This begs the question: if Toyota is selling cars at a loss, isn’t it guilty of “dumping,” the practice defined by the World Trade Organization as selling products below cost? Shouldn’t the U.S. immediately file a complaint with the WTO? Shouldn’t the WTO immediately either force Toyota to raise their prices or authorize the U.S. to impose tariffs on Toyota vehicles?
Some may protest that the domestic automakers are also operating at a loss. True, but that doesn’t violate any international trade agreements. No other nation can take a case against the Big Three to the WTO because no one imports American-made cars, for all intents and purposes.
But none of this will happen. WTO rules are for the U.S. to follow and no one else. We’ll simply give Japan time to dump yen and buy dollars, manipulating the dollar-yen exchange rate back to where they can easily make a profit.