Monday, September 15, 2008

Carbon Tariffs Pose Risk of Trade War

The OECD was briefed a few days ago on the risk of imposing tariffs on countries that don't put a price on carbon themselves.

Placing tariffs on goods from countries that do not put a price on carbon is a central plank of the so-called Green Shift

By putting the tariffs in place, the Liberals if elected would risk a trade war with whatever country they imposed these tariffs on. That would not be good for the economy.

The leading economic organization of the industrialized world is being advised to condemn attempts by countries to impose carbon tariffs on certain imported goods -- an initiative that the Liberal party advocates in its key election-campaign policy, the Green Shift plan.

Of course these tariffs would also hurt ordinary Canadians as well
Carbon tariffs are seen as a way that governments can help their domestic businesses compete in a global marketplace where rivals may not face the same kind of stringent environmental regulations. Economists at CIBC World Markets have said carbon tariffs could boost inflation, as new charges are slapped on imports, and reverse companies' march toward moving manufacturing operations to countries with less-robust climate-change policies.


You don't need a PhD to see this. Perhaps the Liberals don't mind a little inflation, it would bump up their tax revenues from increased GST and income tax being collected.

The Organization for Economic Co-operation and Development has been told that tariffs aimed at punishing countries -- mostly from such emerging markets as China -- that emit high levels of greenhouse gases carry "significant" risks, including sparking a global trade war. It is advised to "speak out strongly" against such levies.

We're better off with Harper.

No comments: