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copy of my letter to the US Trade Office: Ambassador Robert B. Zoellick U.S. Trade Representative 600 17th Street, N.W. Washington, DC 20508 Dear Ambassador Zoellick: I would like, if I may, to ask you a question concerning basic trade principles, in light of the U.S. position with regard to our Airbus dispute with the European Community. If I understand our position in that case correctly, we argue that free trade under WTO rules is not whatever laissez-faire decrees, but rather "is about fair competition and a level playing field," as you were quoted in the October 7, 2004 Wall Street Journal ("U.S., Europe Sue Each Other at WTO Over Aircraft Subsidies"). In that regard, it seems to be our claim that Airbus enjoys excessively large tax subsidies, creating an unlevel playing field on which Boeing cannot fairly compete. We, therefore, have petitioned to have WTO rule that the tax subsidies are an unfair trade practice, subject to penalties. I mention all this not because I have any objection to that posture. However, it leads me to ask whether or not the exact same principles would apply with equal force to pollution regulations. That is to say, if a trading partner permits excessively large releases of pollutants by its manufacturers, in substantial departure from the international norm, the relative effect on international competitiveness is the same. An unlevel playing field is created because manufacturers in that country will have a lower cost of producing product - which is the functional equivalent to the bottom line of enjoying lower taxes or receiving cash grants. Moreover, there would seem to be an even stronger grounds for our concern, along with other neighboring countries, because, in many instances, pollution acknowledges no international boundaries and its costs are borne directly by those other countries in the form of higher health bills and other related environmental costs. My question to you is whether the U.S. trade position includes along with opposition to undue tax subsidies, improper environmental subsidies by our trading partners. Sincerely, Peter Anderson _________________________ Peter Anderson, President RECYCLEWORLDS CONSULTING 4513 Vernon Blvd. Suite 15 Madison, WI 53705-4964 Ph: (608) 231-1100 Fax: (608) 233-0011 Cell: (608) 698-1314 eMail: anderson@no.address web: www.recycleworlds.net |
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