Financial Times FT.com

EU trade chief to reject ‘green’ tax plan

By Andrew Bounds in Brussels

Published: December 17 2006 22:12 | Last updated: December 17 2006 22:12

The European Union’s trade commissioner will on Monday dismiss French proposals for a “green” tax on goods from countries that have not ratified the Kyoto treaty as not only a probable breach of trade rules but also “not good politics”.

Peter Mandelson says that the levy, aiming to cancel the competitive advantage of countries that are not cutting carbon emissions to fight global warming, would be “highly problematic under World Trade Organisation rules and almost impossible to implement in practice”.

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