Green trade war looms as protectionism masked in eco-legislation

TRADE groups have warned the US Senate to refrain from including trade and competitiveness provisions in global warming legislation or risk a "green trade war", reported American Shipper.

A submission from the Emergency Committee for American Trade, National Foreign Trade Council, US Chamber of Commerce, and US. Council for International Business said that the House bill had gone too far in subjecting imports to carbon tests.

Such provisions are "highly inflexible, and likely to conflict with obligations the United States has undertaken in international trade agreements. In fact, these provisions are already stirring consternation among some of our key trading partners and could trigger a 'green trade war,'" said their brief.

"We believe any successful legislation that aims to restrain greenhouse gas emissions must abide by US international trade obligations and should encourage action by other major emitting countries," according to the brief.

The groups cited examples of the House's 2009 American Clean Energy and Security Act (HR 2454), including tariffs or "border measures" on carbon-intensive imports.

"If such measures are pursued as a last resort, it is imperative that the president is given wide discretion to decide whether or not to impose them," said the brief.

The US government should instead seek an international consensus not only on an agreement at the United Nations Framework Convention on Climate Change, but also on the use of trade-related measures in domestic climate change legislation, the brief said.

Source: http://www.schednet.com