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Concurrently with raising carbon taxes a carbon tariff should also be instituted.  Otherwise the tax will privilege manufacturers in China and other areas where the rulers don't care about the effects of pollution.
by ATinNM on Thu Apr 26th, 2007 at 11:00:59 AM EST
... are doing it at the same time, because it will certainly be challenged in the WTO.

I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.
by BruceMcF (agila61 at netscape dot net) on Thu Apr 26th, 2007 at 11:44:56 AM EST
[ Parent ]
Needs to be part of a trade round or we need to take the WTO out and put it out of our misery. Either works for me.
by Colman (colman at eurotrib.com) on Thu Apr 26th, 2007 at 11:50:23 AM EST
[ Parent ]
... to allow for this, but it depends on how that language is interpreted. The current interpretation sets an insanely high bar ... in essence, a tariff that is implemented to support an enviromental (or other social) objective must be shown to be the only way to conceivably pursue that objective.

So you can shoot down a ban on, for example, tuna caught with techniques that kill dolphins by proposing an alternate policy that could arguably achieve the same end, without every having to show that the alternate policy is efficient, nor whether it actually has any hope of being implemented or, if requiring agreement among different nations, being agreed to.

If that interpretation is shifted to being the most reasonable policy to pursue that objective, there may be an opening.

And the best way to push through a test case that involves that kind of change in interpretation would be heavy pressure from the US combined with the EU.

Obviously that kind of pressure would never emerge without a change in US president.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Thu Apr 26th, 2007 at 11:59:34 AM EST
[ Parent ]
And on just that topic: BBC on "Border Tax Adjustments".
by Colman (colman at eurotrib.com) on Thu Apr 26th, 2007 at 01:08:31 PM EST
[ Parent ]
... the jargon. "BTA's".

Note that a US BTA (assuming a US cap and trade or carbon tax is put into place ... which means, after 2008) could provide a combined carrot/stick for performance by being based on carbon emissions per US$ GDP at current exchange rates so that ... given that a cap and trade is the policy most likely to be implemented given the US division of executive and legislative powers ... that determines the number of carbon permits that must be bought to import a certain quantity from a particular country.

On that measure, it seems highly likely that China would face a steep BTA.

Countries emitting less than the US per US$ GDP could be excused from the tax.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Thu Apr 26th, 2007 at 01:26:13 PM EST
[ Parent ]
... a tariff that is implemented to support an enviromental (or other social) objective must be shown to be the only way to conceivably pursue that objective.

You put the monkeys in charge of the banana plantation and this is the sort of nonsense that results.

by ATinNM on Thu Apr 26th, 2007 at 04:25:25 PM EST
[ Parent ]
... that was the technical term for it, sorry. The common phrase is "fox in charge of the chicken coop", but "monkeys in charge of the banana plantation" is the technical description.

You have specialists in international trade decide whether a specific policy is required to protect a certain endangered species, and they take the threat of trade restriction more seriously than the loss of a line of DNA that developed before we developed fire or language.


I've been accused of being a Marxist, yet while Harpo's my favourite, it's Groucho I'm always quoting. Odd, that.

by BruceMcF (agila61 at netscape dot net) on Fri Apr 27th, 2007 at 12:01:42 AM EST
[ Parent ]
I agree it would have to be a global effort.  There are problems.  For the US NAFTA comes into play.  The China trade is using Mexico to tranship goods due to US ports operating at 100% capacity.  There maybe a similar problem with the EU -- I don't know anything about EU Trade treaties.
by ATinNM on Thu Apr 26th, 2007 at 04:21:11 PM EST
[ Parent ]

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