EU would consider taking U.S. to WTO over auto aid

ROME (Reuters) - The European Union would consider appealing to the World Trade Organization if U.S. aid for the American auto industry made conditions unfair for European manufacturers, the EU's transport chief said.

"Europe is evaluating -- if that help should impinge on the competitiveness of our producers -- appealing to the WTO," European Transport Commissioner Antonio Tajani said in an interview with Italian paper La Stampa published on Thursday.

The Italian commissioner said that, with countries around the world providing incentives for their industries to protect national production and jobs, certain countries giving their own manufacturers an unfair advantage should be avoided.

"Nobody can stop cars made in another country from being sold inside their borders. That would be protectionism," Tajani said.

"But Europe won't just look on while one of its most important industries is in crisis and, outside the Old Continent, other governments provide aid," he told La Stampa.

The EU car industry, which employs 2.3 million people directly and 10 million in related industries, has warned that output could fall by at least 15 percent this year and producers might need up to 15 billion euros ($19.10 billion) in financial help.

Already car industry support schemes within France, Spain, Britain, Italy, German and Sweden are being scrutinized by EU competition authorities.

"If we defend ourselves from this outside the EU, we can't permit it internally," said Tajani, adding that this would be on the agenda at next Sunday's EU crisis summit in Brussels.

He also pointed out an imbalance in auto sector trade with South Korea, saying the EU should only go ahead with a trade deal with Seoul "if we also get some advantages."

"Korea sells 600,000 cars in Europe a year. Europe sells 22,000 in Korea," said Tajani, adding that South Korean auto manufacturers should also "respect European quality and safety standards."

(Reporting by Stephen Brown; editing by Michael Roddy)