Countries implementing cap-and-trade systems for greenhouse gases may be able to use border taxes to protect domestic industries, after the World Trade Organisation gave a cautious nod to such measures.It's basic common sense, though they do note that it cannot be, "a means of arbitrary or unjustifiable discrimination or a disguised restriction on international trade".
Friday, June 26, 2009
WTO Says Environmental Tarriffs Legal
Much in the same way that they allow for the VAT to be charged at the border, a tariff to reflect the cost of carbon regulations would be legal:
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