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"The climate crisis is too urgent for the U.S. or any country to allow outdated trade rules... to distract us from enacting bold climate policies," argued one campaigner.
As the Chinese government on Tuesday formally challenged what it termed "discriminatory" U.S. electric vehicle subsidies, climate action advocates warned that antiquated trade policies and international bickering must not be allowed to hamper the urgently needed green energy transition.
"Immediate climate action must take priority over compliance with outdated trade rules that were inked long before governments worldwide began taking the climate crisis seriously," said Trade Justice Education Fund executive director Arthur Stamoulis in response to the move by Beijing.
Melinda St. Louis, director of Public Citizen's Global Trade Watch, agreed that "the climate crisis is too urgent for the U.S. or any country to allow outdated trade rules—written long before governments were taking climate change seriously—to distract us from enacting bold climate policies."
"Existing trade rules need to be rewritten so that trade pacts can become tools for helping the world advance towards a clean, just, and sustainable economy—but we don't have time to wait."
China—which has heavily subsidized its own electric vehicle industry—on Tuesday filed a complaint against the United States at the World Trade Organization (WTO), taking aim at rules for EV tax credits included in the Inflation Reduction Act (IRA), a sweeping package signed by President Joe Biden in 2022.
"Under the pretext of 'responding to climate change' and 'environmental protection,' the U.S. has formulated discriminatory policies through its Inflation Reduction Act regarding new energy vehicles, excluding products from China and other WTO members from subsidies," said a Chinese Ministry of Commerce spokesperson, according to a translation by the South China Morning Post.
"Such exclusions distort fair competition, disrupt global industrial and supply chains, and violate WTO principles such as national treatment and most-favored-nation treatment," added the spokesperson. "We urge the U.S. to abide by WTO rules, respect the development trend of the global new energy vehicle industry, and rectify its discriminatory policies."
U.S. Trade Representative Katherine Tai said that "we are carefully reviewing the consultation request" and called out the People's Republic of China for using "unfair, nonmarket policies and practices to undermine fair competition and pursue the dominance of the PRC's manufacturers both in the PRC and in global markets."
Tai also praised "President Biden's leadership," represented by the passage of the IRA, which she described as "a groundbreaking tool for the United States to seriously address the global climate crisis and invest in U.S. economic competitiveness." She said the U.S. would "continue to pursue major new investments in clean energy technology, from solar and wind to batteries and electric vehicles and beyond."
The Associated Pressreported Tuesday that "the real-world impact of the case is uncertain. If the United States loses and appeals the ruling, China's case likely would go nowhere. That is because the WTO's Appellate Body, its supreme court, hasn't functioned since late 2019, when the U.S. blocked the appointment of new judges to the panel."
St. Louis said that "China's threatened trade attack against climate provisions in the U.S. Inflation Reduction Act is another example of why the U.S. and other nations should begin working with one another towards an immediate moratorium on the use of trade challenges against clean energy transition and other climate measures."
"We've been warning since before the passage of the Inflation Reduction Act that antiquated WTO rules would threaten our ability to realize the green transition," she noted. "Prominent labor, environmental, and consumer groups have urged the U.S. government to boldly implement the IRA as intended despite trade pact attacks—and to make a commitment not to use such trade rules to challenge other countries' climate policies."
Stamoulis pointed out that "governments worldwide are wasting considerable amounts of time and political capital attempting to squeeze potential climate measures into compliance with outdated trade and investment rules."
"Ultimately, existing trade rules need to be rewritten so that trade pacts can become tools for helping the world advance towards a clean, just, and sustainable economy—but we don't have time to wait," he continued. "A 'climate peace clause' that brings an immediate end to the ongoing trade attacks against climate measures is a necessary interim step towards helping governments transition to clean energy on the rapid timeline that is required to head off the worse possible impacts of climate change."
"A moratorium on the use of international trade agreements to challenge climate policies would: (1) help governments safeguard existing climate mitigation and transition measures by protecting them from trade challenge; (2) create the space for governments to adopt the bolder climate policies that justice and science demand without fear or threat of new trade challenges; and (3) incentivize and offer countries time to work together and resolve the underlying tensions between current trade law and the imperative for climate action," he explained.
St. Louis also called for implementing a climate peace clause to "temporarily halt cases like this one so countries can prioritize the green transition and revise the WTO rules currently creating unnecessary hurdles."
"We must move forward with IRA implementation and work to enact even bolder policies to transform our economy for a clean energy future, and support other countries that do the same," she asserted.
China's WTO complaint comes on the heels of the hottest year in human history—which concluded with a United Nations climate summit that scientists called a "tragedy for the planet" because the conference's final agreement didn't demand a phaseout of fossil fuels that are driving global heating.
Soaring temperatures have continued this year, with European Union scientists recently announcing that last month was the warmest February on record. Carlo Buentempo, director of the E.U.'s Copernicus Climate Change Service, stressed that "the climate responds to the actual concentrations of greenhouse gases in the atmosphere so, unless we manage to stabilize those, we will inevitably face new global temperature records and their consequences."
Lawmakers banking on "special favors" in exchange for their votes on controversial trade legislation risk "political peril," according to a new report (pdf) from the watchdog group Public Citizen.
In the face of stubborn resistance from Democratic lawmakers, the Obama administration has "moved beyond trying to sell Fast Track on its merits," Public Citizen says, "and is now offering rides on Air Force One, promises of infrastructure legislation, and pledges to help representatives survive the political backlash of a 'yes' vote on Fast Track." What's more, lawmakers are striving to include amendments to allegedly make pending trade legislation more palatable.
But with news outlets reporting that dozens of lawmakers are withholding their support for Fast Track legislation--which would allow President Barack Obama to send the 12-nation Trans-Pacific Partnership deal to Congress for an up-or-down vote--in order to "see what they can get" in terms of political favors and backing, Public Citizen's analysis illuminates how such promises "consistently have been broken, exposing representatives to angry constituents and electoral losses."
"Even in the rare case where a promise to 'fix' a controversial trade deal has been upheld, the acclaimed tweak has failed to offset or outlast the damage wrought on local communities," said Ben Beachy, research director of Public Citizen's Global Trade Watch. "Voters do not tend to remember boasts of finite safeguards or worker assistance funds, while mass layoffs, farm foreclosures and news reports on inequality provide fresh, ongoing reminders of how their member of Congress voted on Fast Track and Fast Tracked deals."
Even now, Bill Moyers and Michael Winship point out, the pro-Fast Track faction is employing "strong-arm tactics" to pass Fast Track: "As the clock ticked past midnight into Wednesday, the House Republican leadership posted the legislation on line, hoping for a vote this Friday--'to spare supportive legislators,' POLITICO reports, 'the possibility of another weekend of attacks by trade foes back in their districts.' Heaven forbid they should have to go home and hear a discouraging word from their constituents--the actual voters, as opposed to their big donors."
They should take heed. One by one, Public Citizen's report offers "examples of the track record of empty promises made to obtain difficult trade votes and resulting truncated political careers, providing a cautionary tale to members of Congress who are now contemplating the administration's pledges of political cover, and offers of various goodies from the president and congressional leaders."
Of the 92 specific promises included in the report, only 17 percent were kept, according to the organization.
For example: In 1993, U.S. Rep. Alcee Hastings (D-Fla.), along with other Florida representatives, voted for NAFTA on the basis of the Clinton administration's promises to protect Florida's tomato growers from destabilizing surges in tomato imports from Mexico. But, Public Citizen points out, the Clinton administration did not honor its pledge--within two years of NAFTA, tomato imports multiplied, Florida's tomato revenues dropped more than 40 percent, and the number of Florida tomato growers fell 60 percent.
"Indeed, a review of the last two decades of presidential promises made to extract trade votes facing passionate public opposition reveals that members of Congress who have exchanged 'yes' votes for such IOUs have more often than not seen the promises broken, leaving them exposed to voters' anger over their vote against the opinion and interests of the majority," reads the report. "In many cases, this exposure has contributed to subsequent electoral losses, costing members of Congress their jobs."
The latest reporting suggests that a vote on Fast Track in the House will come on Friday. According to The Hill:
Despite Obama's efforts, an overwhelming number of Democrats are expected to vote against his call for fast-track. But the White House has won 19 Democratic votes, according to a Whip List kept by The Hill.
A handful of other Democratic votes could also be in play for Obama, fast-track supporters such as Rep. Gerald Connolly (D-Va.) have said.
Republicans are seeking to win as many as 200 votes in their conference for fast-track. Thirty House Republicans are "no" or "leaning no" on the vote, according to The Hill's Whip List.
Protesters scaled the Office of the U.S. Trade Representative on Monday and dropped banners calling for greater transparency and an end to "corporatocracy" over the ongoing and secretive Trans-Pacific Partnership trade agreement currently in the works between the United States and several Pacific nations.
Those negotiations, which have been brokered entirely behind closed doors, are certain to put corporate profits ahead of both human rights and environmental concerns, opponents of the pact have argued.
Today's banner drop comes as part of a series of actions that started with a rally on Friday outside of the trade office and will continue throughout the next several days.
Groups involved in the ongoing protests include FlushTheTPP.org, CODEPINK, Veterans for Peace, Earth First!, Communications Workers of America, Friends of the Earth, Food and Water Watch and Public Citizen's Global Trade Watch.
"Regulating Wall Street is what we need. It's time to flush the TPP," Melinda St. Louis, international campaigns director for Public Citizen, said to the crowd on Friday as she stood in front of a large cardboard-constructed roll of toilet paper labeled the TPP Death Star.
"Protecting workers is what we need," she said.
"Americans cannot afford another back-room deal that offshores manufacturing and service jobs, reduces tax revenues and pushes down wages and benefits in the jobs that remain," Arthur Stamoulis, executive director of Citizens Trade Campaign said Friday. "Unless exposed to the light of day and real public participation, the TPP is poised to enrich corporate interests at the expense of the economy, the environment and public health at home and abroad."
While the U.S. public and the press have been locked out of TPP meetings, corporate "trade advisers" have participated and been given copies of the agreement.
President Barack Obama announced Thursday he will push fast-track legislation, otherwise known as Trade Promotion Authority, which will allow him to push through trade agreements while taking away congressional powers to amend.
"This is the grand-daddy of trade deals, a very destructive project, and it is happening completely under the radar," Chris Townsend, political director for United Electrical, Radio and Machine Workers of America (UE), told Common Dreams on Friday.
Watch below for an interview with Public Citizen's Melinda St. Louis at the protest on Friday.
"Flush the TPP": What's Wrong With the Trans-Pacific Partnershiphttps://ourfuture.org's Isaiah J. Poole interviews Public Citizen's Melinda St. Louis about the Trans-Pacific Partnership, a trade deal ...
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