Business Groups: U.S. Faces ‘Green Trade War’ Over Carbon Tariffs

July 23, 2009

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In a shot across the bow of climate change legislation, business groups have warned Congress that the U.S. risks starting a “green trade war” if tariffs are levied against carbon-intensive goods.

The U.S. Chamber of Commerce, the National Foreign Trade Council and two other groups fired off the letter July 23, Reuters reports.

“We urge the Senate to refrain from including provisions that could negatively impact U.S. relations with key trading partners and disrupt the global trading systems,” the letter stated.

“Climate change is a global problem that calls for international cooperation, not unilateral ultimatums,” it continued.

Provisions in the House Climate Bill are “stirring consternation among some of our key trading partners and could trigger a green trade war,” the letter stated.

Consensus on a U.S. climate bill is not expected anytime soon, as the Senate committee working on its version has said it will not complete its work until later this year.

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