Friday, March 14, 2008

EU warns US, China on climate change (Trade sanctions)

BRUSSELS - European Union leaders threatened the United States and China with trade sanctions Friday if the world's two biggest polluters don't commit to ambitious cuts in greenhouse gases by next year.

The warning came as the economic downturn focused European leaders on the impact on industry of their groundbreaking agreement last year to cut carbon emissions by 20 percent from 1990 levels by 2020.

EU leaders want similar commitments from other major economies by next year, when a conference on global warning is to take place in Copenhagen, Denmark. Otherwise they say European companies will need protection from unfair competition from heavily polluting rivals in China and the United States — the world's biggest emitters of carbon dioxide.

In a declaration issued after a two-day summit, the 27 EU leaders warned: "If international negotiations fail, appropriate measures can be taken" to protect European industry.

French President Nicolas Sarkozy went further. "Our main concern is to set up a mechanism that would allow us to strike against the imports of countries that don't play by the rules of the game on environmental protection," he told reporters Friday.

German Chancellor Angela Merkel noted the threat to European producers. "Industry, faced with global competition could be exposed to a real disadvantage if no international climate accord is struck, but we in Europe have very strict rules," she said.......

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