Green protectionism threatens trade

Secondly, those countries which do adopt this system will want to compensate for the added costs, hence the”border tax adjustments.” The European Commission is considering a similar “equalization levy.” Both mean Green protectionism.

Thirdly, to compensate for the suicidal carbon taxes on production, companies and workers will want the suicidal drugs of protectionism and subsidy.

President Obama's stimulus package includes Buy American protectionism and subsidies for U.S. companies, which have already caused U.S. workers to be laid off because their firms use imported components: “I've got 600 United Steel Workers out there who are going to lose their jobs because of this. And you tell me this is good for America?” Bob Miller of Pennsylvania steel-maker Duferco Farrell told the Washington Post in May.

Fourthly, to avoid the extra costs, companies may leave countries with cap-and-trade and other energy taxes. Those that remain will complain of unfair competition and seek subsidies for themselves and tariffs on imports — both of which are extra taxes on consumers.

The cap-and-traders say the punitive tax will create incentives for inventing and adopting ways of cutting emissions. But innovation has always arisen from thriving and free economies, not ones in a harsh recession that will be deepened and perpetuated by carbon taxes.

Cap-and-trade creates tariffs, subsidies, energy taxes, trade constriction and job losses in the country that introduces it and among its trading partners, with huge trickle-down costs to all consumers and workers, hitting the poorest hardest.

Growth is the only way to save the poor and to invent and promote energy-saving technology. Stimulating trade is the best way to promote growth and recover from the recession.

Aris Trantidis is a researcher at International Policy Network and the Freedom To Trade coalition of 73 think-tanks around the world.

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