When the EU Claims Unfair Taxation History Cringes
Sept 18 -(Associated Press) - The European Union should avoid imposing a "carbon tax" on countries that haven't agreed to cut their global warming emissions, the E.U.'s top trade official said in a speech Thursday.
Such a tax would raise operating costs for manufacturers and could provoke retaliation from the E.U.'s trading partners in the form of new tariffs on E.U. exports, according to a speech in Oslo by Trade Commissioner Peter Mandelson.
"Right now we should be focusing on building a global coalition for a new global climate treaty," Mandelson said. "Tough talk on a climate tax will only alienate the very partners we need to get on board."
The E.U. shouldn't rule out the idea, however, for countries that refuse to sign on to such a treaty, said Michael Jennings, a spokesman for Mandelson.
Some in Europe have suggested that the E.U., which has imposed limits on carbon dioxide emissions, should tax imports from countries without limits, because their industries don't bear the cost of complying with greenhouse gas regulations. The European Commission has instead proposed to deal with this problem by giving free emissions credits to European manufacturers that face competition from overseas industries.
Mandelson also said countries should adopt a free-trade deal for green technology to help developing countries cut their global warming emissions.
The success of a global treaty to cut carbon dioxide emissions depends on spreading green technologies through trade, without tariff barriers.
"Without an open global market in green technology, any new global emissions reduction deal would start life with at least one hand tied behind its back," Mandelson said.
The E.U. wants an agreement that would end tariffs on important environmental technologies identified by the World Bank, Mandelson said.
Posted By: Michael Hunter @ 2:56:34 PM
