Climate goals don't mean protectionism - EU, US trade chiefs

LEIGH PHILLIPS

21.01.2008 @ 17:11 CET

Trade chiefs from both the EU and the US on Monday (21 January) said that the fight against climate change should not be used as an excuse for putting up protectionist trade barriers.

"I don't believe trade restrictions are the way forward to combat climate change," EU trade commissioner Mr Mandelson said at a joint press conference in Brussels with his US counterpart Susan Schwab.

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"They're not cost efficient, they carry a risk of retaliation, they would result in increasing cost for European industry at large," he continued.

Ms Schwab said Washington had "been dismayed at a variety of suggestions where we see climate or the environment being used as an excuse to close markets."

The comments were seen as a direct rebuff to French president Nicolas Sarkozy's recent suggestion that a carbon tax should be imposed on non EU countries that do not have such strict environment rules.

The discussion comes as the EU is to this week unveil concrete plans on how it is to reach a 2020 goal of reducing carbon dioxide emissions by 20 percent.

France and others fear EU industry will be put at a disadvantage to competitors operating under laxer green regimes such those in the US or China.

GMOs

Both sides are still struggling to overcome their difference on genetically modified organisms (GMOs).

Ms Schwab criticised the EU saying that its opposition to GMOs was based on "bad science."

"We all have a respect for the health and safety of our citizens, and that's the first priority," said the US trade representative.

"But in the case of biotech, there is clear scientific evidence that it is not bad, that in fact that it is good and good for human consumption, and arguably environmentally responsible."

The US criticism comes as France recently decided to ban MON810 – a form of genetically modified corn developed by biotechnology firm Monsanto – and as the EU failed to meet an 11 January deadline set by the World Trade Organisation to end the restrictions on the import of certain GMOs.

Mr Mandelson responded to Ms Schwab by saying that the EU must follow its own rules on this issue but he reassured the US that it would not drag its feet unnecessarily.

"What is of vital importance in the GMO discussion is that Europe demonstrates convincingly that we are applying our own laws, our own rules, our own regulatory framework and not causing undue delays both in terms of approvals and in the tackling of safeguards that have not shown to be scientifically based," said Mr Mandelson.

"We will guide the member states to an appropriate science-based conclusion which is in conclusion with the EU's own legal framework."