Breakingviews - Trade feuds will take on a new, green hue

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A trade fight led by President-elect Joe Biden to promote environmental standards could be as ugly as the trade disputes unleashed by his predecessor, writes swahapattanaik. BVPredictions2021

Biden wants the United States to rejoin the 2015 Paris Agreement to curb global emissions and reach net-zero emissions by 2050. But his focus isn’t just domestic. The Democrat’s election pledges included a plan to apply a carbon adjustment fee against countries that fail to meet climate and environmental obligations. He also said he would push for labour provisions in any commerce deal that his administration negotiates.

Global trade agreements typically leave the door open to differing interpretations and disputes. Countries can take measures to protect the environment, human health, and animal or plant life as long as unnecessary trade barriers aren’t thrown up, according to World Trade Organization rules. And America isn’t the only country that can play the green card.

 

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