Page 11 - Gi_March2020

international news

US THREATENS RETALIATION the Paris climate accord, the EU and US
have been at odds over global policies
AGAINST EU OVER CARBON TAX to tackle climate change, but those
tensions had not yet spilled over into
the trade arena.
Mr Trump and Ms von der Leyen said
TREASURY SECRETARY STEVEN MNUCHIN SAYS at the World Economic Forum in Davos
CARBON TAXES ARE A TAX ON HARD WORKING PEOPLE
that they would try to strike a limited
truce in their trade war this year,
easing fears of full-blown escalation.
Officials have said there could be
common ground in areas ranging from
agricultural trade and standards, to
technology and energy, which could be
settled fairly rapidly.
But the potential for new flare-ups
remains. US officials have repeatedly
threatened to impose tariffs on the
EU automotive sector, and the split on
climate policies appears to be widening.
During the Davos meetings, Steven
Mnuchin, the US Treasury Secretary,
sparred with Christine Lagarde, the
European Central Bank President,
over ways to tackle climate change. Mr
THE EU’S PLANS for a carbon tax have “Depending on what form the carbon Mnuchin described a carbon tax as “a
emerged as a potential new flashpoint tax takes, we will react to it — but if it tax on hard working people.”
in transatlantic trade ties, after the is in its essence protectionist, like the A group of influential Republicans
Trump administration warned that it digital taxes, we will react,” Mr Ross have been pushing for the White House
would “react” with possible punitive told The Financial Times. to adopt a carbon “dividend” system,
measures against Brussels. Taxing carbon imports is one of comparable to a tax, in recent years.
Wilbur Ross, the US Commerce the EU’s top priorities under the new However, this has hitherto made little
Secretary, compared the EU’s proposals European Commission led by President headway and although the Trump
to recent moves by several European Ursula von der Leyen. But the plans look administration is accelerating its
countries to impose a digital services set to add to friction between Brussels embrace of some environmental issues,
tax, which has angered US officials and and Washington over the environment. such as tree planting, it continues to
caused Washington to threaten tariffs Ever since President Donald Trump stress that the main onus for action
on EU products. announced America’s withdrawal from should lie with China.

RUSSIA TO GO IT ALONE ON CONSTRUCTION OF NORD STREAM 2 PIPELINE

RUSSIA HAS PLEDGED TO COMPLETE THE Kremlin-controlled gas monopoly, is
PIPELINE, DESPITE ITS POLITICAL TROUBLES
the first official acknowledgment that
Moscow will complete the pipeline,
NORD STREAM 2 which runs from Russia to Germany,
without foreign involvement, reports
The Financial Times.
“The Nord Stream 2 project, which
is already 94 per cent complete,
will be finished by the Russian
side,” Gazprom’s deputy head Elena
Burmistrova said at the European Gas
Conference Vienna.
In December, Washington
imposed sanctions against companies
involved in the construction of the
Nord Stream 2 as part of efforts to
punish Moscow for alleged meddling
in the 2016 US presidential elections.
RUSSIA HAS SAID it will complete companies, marking a victory for the US The Trump administration also
construction of the controversial which imposed sanctions in an attempt voiced fears that the pipeline would
Nord Stream 2 gas pipeline under the to halt the project. increase Europe’s dependency on
Baltic Sea without the help of foreign The admission by Gazprom, the Russian energy.

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News.indd 6 13/02/2020 13:39