The Heat Is Online

Chirac Threatens US With Carbon Tax on American Exports

France Tells U.S. to Sign Climate Pacts or Face Tax

The New York Times, Feb. 1, 2007

 

PARIS, Jan. 31  President Jacques Chirac has demanded that the United States sign both the Kyoto climate protocol and a future agreement that will take effect when the Kyoto accord runs out in 2012.

 

He said that he welcomed last weeks State of the Union address in which President Bush described climate change as a serious challenge and acknowledged that a growing number of American politicians now favor emissions cuts.

 

But he warned that if the United States did not sign the agreements, a carbon tax across Europe on imports from nations that have not signed the Kyoto treaty could be imposed to try to force compliance.

 

The European Union  is the largest export market for American goods. A carbon tax is inevitable, Mr. Chirac said. If it is European, and I believe it will be European, then it will all the same have a certain influence because it means that all the countries that do not accept the minimum obligations will be obliged to pay.

 

Trade lawyers have been divided over the legality of a carbon tax, with some saying it would run counter to international trade rules. But Mr. Chirac said other European countries would back it. I believe we will have all of the European Union, he said.

 

Mr. Chirac spoke as scientists from around the world gathered in Paris to discuss an authoritative international report on climate change, portions of which will be released on Friday.

 

Mr. Chiracs critics say that despite his comments in support of environmental measures, his record as president is far from green. He angered environmentalists across the globe when he conducted nuclear tests in a Pacific atoll within months of coming into office in 1995. He has been a loyal ally of French farmers and their pollution-causing practices, blocking some proposed Europe-wide reforms.

 

Most recently, Frances national plan for allocating carbon emission credits to businesses had to be revised after the European Union rejected it as too generous.

 

Chirac warns U.S. of import carbon tax

United Press International, Feb. 1, 2007

 

French President Jacques Chirac said Europe will impose a carbon tax on U.S. imports if the United States doesn't sign on to the Kyoto environmental protocol.

 

"A carbon tax is inevitable," Chirac told The New York Times. "If it is European, and I believe it will be European, then it will all the same have a certain influence because it means that all the countries that do not accept the minimum obligations will be obliged to pay."

 

Chirac praised U.S. President George Bush's State of the Union address last week for acknowledging climate change was a "serious challenge" but said import taxes remained an option for any countries not in the Kyodo protocol, or its successor when Kyoto expires in 2012.

 

The European Union is the largest export market for U.S. goods.

Some EU trade lawyers studying the carbon tax issue have expressed doubts about its legality, as it would conflict with some existing international trade rules, the report said.