Answer: The Energy Innovation and Carbon Dividend Act will not disadvantage U.S. business in the world market, because it has a provision built in to protect trade competitiveness: a ‘Carbon Border Fee Adjustment’ imposed on covered fuels and ‘emissions-intensive trade-exposed’ (EITE) goods [1,2] that cross our border in either direction. These goods include products like steel, aluminum, cement, glass, certain chemicals, and some agricultural products. [3] Goods that fall under this EITE classification and are imported from a country that does not have a carbon price equivalent to ours will have to pay a surcharge to make up the difference. Conversely, an American-made EITE product exported to such a country will get a refund for the carbon fee associated with its carbon footprint. This border adjustment prevents the carbon fee from putting American businesses at a competitive disadvantage in global markets. It will also remove the incentive for them to relocate overseas to avoid the carbon fee. In addition, it will encourage foreign countries to adopt their own carbon fee so they would get the money instead of us. In fact, both the European Union (EU) and Canada – countries that account for a third of our international trade [4] – are discussing border carbon adjustments of their own. [5,6] We can’t afford to get left in the dust on this issue. The carbon border fee adjustment in H.R.763 is also designed to comply with international trade law. [7,8] Click here for supporting graphics This page was last updated on 12/15/20 at 16:15 CST.Carbon Border Fee Adjustment Laser Talk
Question: Won’t this carbon fee hurt American business in the world market?
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