Britain’s former trade secretary calls for carbon border tax

On 3 March 2021, the United Kingdom (UK) Secretary of State for Northern Ireland, Brandon Lewis, announced in a written statement to the UK Parliament, and without consulting the European Union (EU) in advance, that the grace period on border controls on a series of food and live products shipped from Great Britain to Northern Ireland would be extended. This meant that products of animal origin, composite products, food and feed of non-animal origin and plants and plant products could continue being shipped from Great Britain to Northern Ireland without the official certification, such as health and phytosanitary certificates, required by the Protocol on Ireland / Northern Ireland (the Protocol) of the Withdrawal Agreement (WA). In response to the UK’s decision, the EU launched legal action against the UK for breaching the provisions of the Protocol, as well as the good faith obligation under the WA. According to the Protocol, the UK must establish border controls on goods moving between Great Britain and Northern Ireland according to EU law. The application of EU law to Northern Ireland, together with the conduct of border controls within the UK, was designed to prevent the establishment of physical border controls (a ‘hard border’) on the island of Ireland, so as to safeguard the Good Friday/Belfast Agreement which brought peace in Northern Ireland, while preserving the integrity of the EU’s single market. The grace period on border controls was agreed by the EU and the UK in December 2020 as a temporary solution to problems raised by the UK. The UK government has reiterated that it intends to implement the Protocol, but that the border controls are causing trade disruption between Great Britain and Northern Ireland and require time to be resolved. It has also mentioned other issues involving areas as diverse as medicinal supplies and parcel shipments, as well as the complexity of customs systems and implementation of exchange of information between the EU and the UK. On 30 June 2021, the EU and the UK reached an agreement on some solutions, including the extension of the grace period on meat products, conditional on tight controls.

Source : © European Union, 2021 – EP

Implementing a border levy to price carbon-intensive imports and protect European industries will be “extremely complicated,” warned Jonathan Pershing, a member of the US climate envoy’s team.

The Group of Seven leaders on Sunday (13 June) pledged to work together to tackle carbon leakage, weeks before the European Union is due to propose a world-first plan to impose CO2 emission costs on imports of certain polluting goods.