Euro Protectionism – For the Environment, of Course!
The Europeans are threatening to impose tariffs on the U.S. if it fails to knuckle under and accept some international climate regulatory system–undoubtedly drafted to favor the Europeans. Reports the Times of London:
America and China face trade protection measures from Europe if they fail to join a global climate deal to replace the Kyoto Protocol, EU leaders will caution at their summit in Brussels today.
Nations that refuse to curb greenhouse gases will be told that they face “appropriate measures” — code for trade sanctions — if they try to gain a competitive advantage by continuing to allow cheap, high-pollution production.
EU leaders are particularly concerned to try to stop big companies relocating from Europe to countries that refuse to join a post-2012 climate change agreement in order to avoid the EU’s tough CO2 targets.
I don’t normally advocate threatening trade retaliation, but Washington needs to make clear that the U.S. won’t accept trade protectionism under the guise of climate protection.