The Greens have indicated that after Australia puts a price on carbon, they could press for tariffs on the nations that don’t.
A day after Trade Minister Craig Emerson rejected European threats to erect the carbon tariffs, acting Greens leader Christine Milne said yesterday there was a good economic rationale for countries taking serious climate-change action to impose such barriers on those who refused to act. “Already, India has imposed a tax on coal, including on imports from Australia,” Senator Milne said.
Her comments came as Julia Gillard prepared to discuss trade with world leaders at the Asia Europe Meeting in Brussels in her first trip abroad since she became Prime Minister.
They also came as the Australian Chamber of Commerce and Industry strongly backed Dr Emerson, who on Sunday dismissed carbon tariffs as “old protectionism” and said he would not “cop” attempts to clothe protectionism in a “green cloak” of respectability.
Dr Emerson also said Labor’s alliance with the Greens would not cause it to move towards the latter’s trade policies, including imposing environmental, labour and humanitarian conditions.
Yesterday, The Australian sent Senator Milne a series of questions about the Greens’ position on trade.
She later released a statement saying Australia should heed the position of British economist Nicholas Stern, who had warned during a recent visit to Australia that there was “a good economic rationale for countries which are taking serious action on climate change to impose tariff barriers on those who refuse to act“.
“Not moving to price carbon is a considerable risk to our economy,” Senator Milne said.
“Australia’s future well-being and economic competitiveness demands that we minimise risk in terms of climate impacts and economic consequences, and that is why I am looking forward to working with the government and the independents to find a mechanism for a carbon price.”
The Greens are working with Ms Gillard on a committee designed to chart the course towards the establishment of a price on carbon.
An ACCI statement released yesterday said Dr Emerson was right to stick by free trade.
“We urge the Gillard government to continue efforts to break down international trade barriers,” said ACCI chief executive Peter Anderson. “ACCI also welcomes Dr Emerson’s recognition of the benefits which accrue to the Australian economy and community from government policies which allow resources to flow to those sectors of the economy which earn the greatest rewards for Australia.”
