Wednesday, June 8, 2011

The Next Trade Spat?

. Wednesday, June 8, 2011

This has been brewing:

"The trade war between China and Europe will not break out over manufacturing industry, customs duties, dumping or the yuan exchange rate, but on a front that no one expected: in the sky," writes La Stampa, in the wake of a threat voiced by the Beijing representative at the IATA (International Air Transport Association) Conference to simply close Chinese air space "if the EU, as it has already decided, introduces an emissions tax on all intercontinental flights leaving the EU on 1st January." The European Commission plans to grant a "license to pollute" similar to those already esablished for other industrial sectors to every airline operating in Europe, explains Le Monde: 82% of emissions rights will be free, but a 18% will have to be purchased on "carbon credits market."


My understanding is that so long as the EU rules are applied non-discriminatorily, such an emissions tax is WTO-legal.

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The Next Trade Spat?
 
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