Friendship is hard

Today during the Whirled Trade Organization's meeting in Lexington, we learned just how difficult it is for important issues to get resolved. The most eye-opening moment was when we debated a resolution for a half hour, only to have it voted down immediately after entering voting procedure. I had done Model UN a lot in high school, but I had only ever represented countries. It was interesting to see how different it is to be representing an interest group because their goals are so single minded. As GM I was obviously expected to have opinions about the resolutions that were relevant to the automobile industry and free trade, but I had to keep in mind that corporations try to be as neutral as possible so that they don't alienate any potential costumers. I had always hated people who abstained from voting because I thought that their abstention was a product of their lack of research, or because they just really enjoyed messing up a vote. Representing a corporation meant that the majority of my votes were abstentions; there was no way that 1 person can represent a whole company in something as divisive as GMO's or international policy. It was hard not to put in my own opinions and stick with a corporate script, but having this different perspective relieved a lot of the pressure and allowed me to really enjoy the insane debates that took place without pressure of having my vote actually count.

GM Position Paper

As evidenced by the US Korea Free Trade Agreement, GM is an adamant supporter of free trade. It provides an opportunity to sell to markets that haven’t been previously reached. In 2009 South Korean automakers sold 500,000 vehicles to Americans, while US auto companies only sold 6,000 in South Korea. In 2013, however, Koreans bought 156,497 American cars, which can be seen as a success for free trade. Obviously GM has faced some tough times, but with the progress we’ve seen since the bailout, we’re excited about the prospects of free trade and being able to introduce our timeless and dependable vehicles to a new type of international consumer. This loyalty to globalization and increasing its efforts means that GM whole-heartedly agrees with points I, II, V, VII. GM thinks that banning non-tariff barriers would be the best way to encourage free trade because it makes sure that the playing field is equal for all automobile companies.  It’s important for everyone involved in the automobile industry to acknowledge the need for innovation in order to meet the changing global demands. GM has put a growing emphasis on electric vehicles like the Chevrolet Volt and Spark, with the Volt being the world’s first modern range extended electric car, in addition to the clean turbo diesel in Chevrolet Cruze. These smaller car options have sold incredibly well over seas, which would be impossible if there were NTB’s in place to stop international companies from coming into these markets. The international community needs to embrace free trade so that all different types of industries can have room to grow. With free trade, GM can not only increase their sales but also help foster international development by creating jobs in countries that were hit by the Great Recession. GM has been successful in opening factories in countries like Korea, Mexico, India, and Venezuela, which make it cheaper for those countries to buy the cars that they want from GM. GM, however, cannot support IV, because the automotive industry relies on subsidies in order to help the progress of important areas like electric vehicles. Subsidies provide incentives to buy electric and clean diesel vehicles. If the electric car market fails this early, there the future of clean fuel will look bleak because future car providers won’t want to risk their profits even if it’s for the good of the environment. Many countries need these subsidies in order for the automotive industry to even exist. China subsidizes their local automakers in order to create an auto industry that could potentially be a rival to German and American automakers. In 2013, 22 publicly traded Chinese auto makers received 4.59 billion yuan ($736 million), which was up 76% from 2011. BYD, which is backed by Warren Buffet is a major contender in the electric car and battery business and needs these subsidies in order to remain relevant in the Chinese economy after it’s net profit dropped 90% from 98 million yuan to 12 million yuan. Stopping subsidies will only harm the auto industry, which will then means that free trade won’t be able to expand as fully as it can. GM cannot support the proposal to stop subsidies, but we’re confident that a steady compromise can be reached that recognizes the importance of environmental inspired financial help.

*Disclaimer: GM has no official position on GMO's, and thus cannot provide an opinion on III*