News

     NEW DHELHI, MARCH 30:THE Union government has warned the US and the European Union that it could exercise the option of moving the world Trade Organistion (WTO) Dispute Settlement Body if the two countries impose carbon tax on exports.

    Following the collapse of the Copenhagen summit, the US and the EU have hinted at the levy of carbon tax on exports to force large polluters, especially the developing nations such as china and India, to take a clean environment stance. The US and the EU had also attempted to link climate and trade issues.

   Carbon tax is an environmental tax on carbon emissions. However, the EU and the US have been threat ening to use carbon tax on exports from developing countries under the guise of controlling emissions.

   The Environment Minister, Mr Jairam Ramesh, said the imposition of such an import barrier by the developed countries was virtually certain.

   Mr Ramesh said, “We will deal with this through hard negotiations. Such barriers are not going to be WTO compatible and we will fight it,”

   Stating that BASIC countries Brazil, south Africa, India amd China were united in their opposition of carbon tax proposed by the rich countries, he said. “China has more at stake than India, considering its volume of trade,”

   The government has opposed attempts by the rich nations to mix trade and climate matters, India, which is against any legally binding agreement, had voluntarily agreed to reduce its carbon emissions by 20-25 per cent by 2020.

   On the other hand, the Commerce Ministry is looking at the possible impact of the proposed carbon tax on export of items like steel, iron, aluminium, cement and chemicals.

   It is also learnt that the European leaders participating in an Eu summit in Brussels are, however, divided on this issue.