The Legitimacy Of The "carbon Tariff" Analysis And Countermeasures

The American Clean Energy and Security Act of 2009 was approved by the House of Representatives on June 26, 2009, which would establish a variant of a cap-and-trade scheme for greenhouse gases to address climate change. This regime is a form of carbon tariff, allowing United States to impose custom duties on carbon intensive products from countries that haven't take measures to curb heat-trapping gases emissions. Many countries, including China, claimed that it is against WTO rules. However, based on my research, I think the Act doesn't conflict with WTO rules. Firstly, carbon tariff is compliant with the principles of Unconditional Most Favored nation and National Treatment, and the General Exceptions incorporated in GATT 1994. Secondly, precedent shows that the implementation of environmental measures is much crucial than the environmental measures themselves. Thirdly, WTO's stand on the issues of trade and environment is changing. Carbon tariff is being accepted by the new age. Under these circumstances, China should take positive response. Internal Carbon Tax and Carbon Trading can both contribute to emission and cost minimizing, and can respectively match with different stages of Chinese development.