Australian Trade Minister Dan Tehan expressed his concerns about the EU’s future Carbon Border Adjustment Mechanism (CBAM) in a 29 June online discussion hosted by Politico.
“The Carbon Border Adjustment Mechanism runs the risk of enhancing protectionism. And that, I think, would be detrimental to global growth and to free trade globally”, he said.
Mr Tehan also raised concerns about the tool’s compliance with World Trade Organization (WTO) rules, as the EU allocates free carbon dioxide emission allowances to many of its companies.
In his view, a reduction in tariffs on so-called ‘environmental goods’ would be a much better approach.
Free Trade Agreement
As for the progress of negotiations for an EU-Australia trade agreement, Mr Tehan reported significant progress in the 12th round of negotiations. “I am confident that we will soon be close to the end of the process”, he said.
In his view, the closer the parties get to a conclusion by the end of the year, the better. “But we want a good deal, rather than a quick deal”, the minister insisted. (Original version in French by Léa Marchal)