"China Says 'Carbon Tariffs' Proposals Breach WTO Rules"

"BEIJING -- Proposals to impose 'carbon tariffs' on imported products will violate the rules of the World Trade Organization as well as the spirit of the Kyoto Protocol, China's Ministry of Commerce said.

In a statement posted on its website, the ministry said collecting carbon duties from foreign products would enable developed countries to 'protect trade in the name of protecting the environment.'

'This will not help strengthen confidence that the international community can cooperate to handle the (economic) crisis, it also will not help any country's endeavors during the climate change negotiations, and China is strongly opposed to it,' the statement said.

The statement comes amid a series of complex debates and negotiations about the impact a new global pact to reduce CO2 emissions will have on the international balance of trade."

David Stanway reports for Reuters July 3, 2009.