cover image: Climate change-related border tax adjustments

Premium

20.500.12592/7x0svk

Climate change-related border tax adjustments

26 Jun 2008

In the academic literature of the time, however, it was pointed out that the difference between an origin basis (taxes on domestic production, imports are tax free) and a destination basis (taxes rebated on exports, taxes apply to imports) is the same as that between a production tax and a consumption tax: both, in the broadly based case, are neutral and neither has direct effects on trade. [...] In a world in which taxes are broadly based on all commodities, the argument was that moving the VAT from an origin to a destination basis would simply change the price level (or the exchange rate); it would have no protective effect, and so the use of a destination-based tax would confer no trade advantage on Europe. [...] The United States, which had been pushing for a negotiation on BTAs as part of the then- emerging Tokyo Round in the GATT, accepted this analytical argument and Ben Lockwood is Professor of changed its policy approach, and there the issue of BTAs stood until its recent Economics at the University of Warwick, manifestation as a proposed accompaniment to carbon emissions control. [...] Lockwood is a Fellow of the Centre BTAs; also that the effects of a BTA should be viewed as independent of the motivation for Economic Policy Research, UK, and for the adjustment. [...] The fact that the current debate is driven by editorial boards of Finanzarchiv, carbon emissions reduction should be seen as largely irrelevant to an assessment of International Tax and Public Finance, the impacts of the BTAs themselves.
climate change trade european union government politics public policy economics economy export taxation tariff international trade competitiveness government policy international relations prices vat gatt tax protectionist climatic changes general agreement on tariffs and trade competition (companies) tokyo round

Authors

Lockwood, Ben

Pages
4
Published in
Canada

Related Topics

All