Carbon Wars The EU is moving forward with its plans for a Carbon Border Adjustment Mechanism (CBAM), and with its EU Deforestation Regulation. Despite claims to handling domestic and imported products equally as required under the WTO’s national treatment obligation, there will be plenty of challenges from trading partners. The U.S. and EU approaches to carbon are very different, and the EU will not exempt American suppliers even though Washington is making a more concerted attempt to address emissions than most other countries. There is no transatlantic agreement on how to even count them. Inevitably, such formulas are constructed to favor the domestic industry. The Biden Administration appears to have given up on a transatlantic ap...

TAGS – North America, Macroeconomics