the visible hand

it is the theory which decides what can be observed – einstein

China Exports May Be Cut by Climate Plan

Posted by ecoshift on December 8, 2009

Hey, what about free trade??


China Exports to U.S. May Be Cut by Climate Plan – Bloomberg.com
By Mark Drajem

Dec. 9 (Bloomberg) — Legislation pending in the U.S. Congress to cut greenhouse-gas emissions may reduce imports of Chinese goods by 20 percent, a World Bank study said.

The provision, included in the measure passed by the U.S. House in June, would tax imports from countries that don’t enact curbs on carbon-dioxide emissions.

Senator Sherrod Brown of Ohio and Representative Sander Levin of Michigan, both Democrats, say any legislation in the U.S. to limit pollutants must include the so-called border measures to tax imports. The Senate hasn’t yet acted on the greenhouse-gas measure.

“People haven’t thought through the full implications of those measures,” Aaditya Mattoo, a World Bank economist and one of the paper’s authors said in an interview.

The threat to imports should be part of what drives negotiations at global climate talks in Copenhagen this week, said Scott Paul, the executive director of the Alliance for American Manufacturing, which represents the United Steelworkers union and U.S. Steel Corp.

“It shows that the right border measures would be effective,” Paul said in an interview. “So it would be in the interest of India and China to participate” in any global agreement to cut emissions, he said.

The U.S. imported $338 billion in goods from China in 2008, more than from any other country.

Advocates say the fees are needed to prevent price- undercutting by manufacturers in countries that won’t match U.S. or European Union climate-change standards. The World Bank study said U.S. and EU manufacturers of steel, cement, plastics, paper and chemicals have reason to be worried.

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