Sat, Dec 24, 2011
Officials Say They Have 'Strong Legal Objections'
A State Department official says that the U.S. Government is
strongly opposed to the imposition of a European emissions
cap-and-trade scheme on U.S. flagged airliners. The EU's highest
court affirmed the Union's right to impose the fees in a decision
handed down Wednesday.
"We continue to have strong legal and policy objections to the
inclusion of flights by non-EU air carriers in the EU ETS," said
Krishna R. Urs, deputy assistant secretary for transportation
affairs at the U.S. State Department. Secretary of State Hillary
Clinton had warned of possible reprisals before the ruling was made
public.
Reuters reports that China's state-run news agency Xinhua warned
of a possible trade war if the tax is imposed, though that
country's foreign ministry did not take that hard-line stance.
Various non-European airline associations have also vehemently
opposed the measure, and have released statements reiterating the
opposition in the days following the ruling.
European officials say that the threats of trade wars or
sanctions are "rhetoric," but some non-European analysts say
that some kind of retaliation, even if it is minor, is to be
expected to show that the U.S. disapproves of the tax. U.S.-flagged
carriers have said they will grudgingly pay the tax if it comes to
that, though they are considering their legal options. Legislation
is still pending in Congress that would make it illegal for U.S.
airlines to comply with the law, which could place the companies in
a no-win situation.
The EU has vowed to "hold firm" on the fee, and points out that
if U.S. and other airlines are taking "equivalent measures" then no
tax will be imposed.
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