<html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div style="margin: 0in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><b class="">Finance Committee drafting carbon border adjustment measure</b><span style="font-size: 11pt;" class=""> </span></div><div style="margin: 0in; font-size: 11pt; font-family: Calibri, sans-serif;" class="">8/12/2021, Inside US Trade<o:p class=""></o:p></div><div style="margin: 0in; font-size: 11pt; font-family: Calibri, sans-serif;" class=""><o:p class=""> </o:p></div><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 11pt; font-family: Calibri, sans-serif;">The Finance Committee is developing a new carbon border adjustment measure for inclusion in the $3.5 trillion reconciliation package, but one that differs from a proposal offered last month by Sen. Chris Coons (D-DE), a committee aide told <i class="">Inside U.S. Trade </i>on Thursday<i class="">.</i><o:p class=""></o:p></p><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 11pt; font-family: Calibri, sans-serif;">The disclosure comes after Senate Majority Leader Chuck Schumer (D-NY) and Budget Chair Bernie Sanders (I-VT) instructed the Finance Committee to consider a “carbon polluter import fee” as an offset in the spending bill.<o:p class=""></o:p></p><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 11pt; font-family: Calibri, sans-serif;">Coons <a href="https://insidetrade.com/node/171795" style="color: rgb(5, 99, 193);" class="">introduced a bill</a> in July that would create a border adjustment, which some Democrats wanted included in the reconciliation package. A carbon border tax would take into account the emissions used in the production of a good as well as other countries’ environmental regulations and impose a fee based on the import’s environmental impact.<o:p class=""></o:p></p><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 11pt; font-family: Calibri, sans-serif;">A Coons aide told <i class="">Inside U.S. Trade </i>that the senator’s bill could provide legislative text for the reconciliation bill, despite not being explicitly referenced. Coons’ office is unaware of any other proposed legislation that include carbon border adjustment measures.<o:p class=""></o:p></p><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 11pt; font-family: Calibri, sans-serif;">Senate Finance member Chuck Grassley (R-IA) has said that he <a href="https://insidetrade.com/node/171082" style="color: rgb(5, 99, 193);" class="">doesn’t see the “advantage</a>” of implementing a border adjustment and opposes Coons’ bill. Analysts have questioned how a carbon border adjustment measure, specifically the one being developed by the European Union, could be compliant with World Trade Organization rules. A group of Republicans this week urged the Biden administration <a href="https://insidetrade.com/node/171968" style="color: rgb(5, 99, 193);" class="">to work with the EU</a> to prevent its carbon border adjustment measure from being implemented.<o:p class=""></o:p></p><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 11pt; font-family: Calibri, sans-serif;">Schumer and Sanders gave committees until Sept. 15 to submit proposals for the reconciliation legislation.</p><div class="">
Arthur Stamoulis<br class="">Citizens Trade Campaign<br class="">(202) 494-8826<br class=""><br class=""><br class=""><br class="">
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