Financial Times FT.com

US risks trade dispute with Canada on fuel

By Alan Beattie in London

Published: February 15 2008 23:30 | Last updated: February 15 2008 23:30

Environmental restrictions on the US government’s purchases of fuel could leave it vulnerable to a trade dispute with Canada and other exporters of oil extracted from hard-to-reach deposits.

The new rules prohibit the US federal government from buying fuels that emit more greenhouse gas during their production and use than conventional petroleum-based fuel.

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