Financial Times FT.com

Border taxes linked to cap-and-trade laws

By Alan Beattie and Fiona Harvey in London

Published: June 29 2009 03:00 | Last updated: June 29 2009 03:00

Cap-and-trade legislation passed by the House of Representatives late on Friday will make it easier for the US to impose import tariffs against countries that do not control their own carbon emissions.

Passage of the bill – it is likely to face an even tougher fight in the Senate – was welcomed by environmental groups and some sections of business, but others warned the so-called “border tax adjustment” provisions could aggravate tensions with the US’s trading partners.

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