The EU must comply with the latest carbon tax reforms according to WTO rules
The European Union (EU) should comply with the new regulations on carbon taxes. The reforms are in accordance with the World Trade Organization (WTO). China states that the EU must impose 20% to 35% tariffs on high-carbon goods such as steel, iron ore, and cement. They also said the EU should not overstep on the agreed-upon global green trade policies.
China is among several countries to have voiced concerns with the WTO. These nations are worried about the European Union’s Carbon Border Adjustment Mechanism (CBAM). The mechanism will stop the European industry from being undercut by cheaper goods. These goods are generally available from countries with weak environmental regulations.
He Yadong from the Chinese Commerce Ministry states that the carbon adjustment mechanism is a cause for concern for many WTO members. Yadong urges the EU to stop implementing protectionist policies and green trade barriers.
He states that China is willing to work within the WTO guidelines and promote multilateral green trade. All countries must work toward multilateral trade. However, they must bear in mind the common but differentiated responsibilities. All nations must come together to discuss measures to curb climate change.
China has set lofty green targets for the coming years. President Xi Jinping has pledged to make China carbon neutral by 2060. Climate experts, however, want China to act faster in that regard. They are questioning why a developing nation should not shoulder a massive load.
China exports aluminum, cement, steel, and fertilizers to the EU. The CBAM affects these commodities and the revenue they bring to the country.
EU responds to the concerns.
Earlier this year, the European Union approved a plan to levy high-carbon imports starting in 2026. Valdis Dombrovskis, the EU chief, states that the European Commission has formulated the rules according to WTO regulations. The EU will apply the same carbon price to imported goods as to domestically produced ones.