Stiglitz urges joint EU-China trade sanctions against the US on climate change

(EurActiv, 28 Mar 2019) Nobel Prize laureate Joseph Stiglitz has called on Europe and China to join forces against the United States at the WTO, saying America has become a “free-rider” on climate change under the Trump administration, in violation of global free trade rules.

“There can’t be a free-rider which takes advantage of others” when it comes to the fight against global warming, Stiglitz told EURACTIV in an interview.

“That’s why I think Europe and China have to have some enforcement mechanisms” to make sure the Paris Agreement is implemented consistently by all major economies, he said during a visit to Brussels last week.

“There are mechanisms consistent with the WTO for enforcement,” he said.

The 2001 Nobel laureate in economics was in Brussels to promote his new book, “Rewriting the rules of the European economy,” published in partnership with the Foundation for European Progressive Studies (FEPS).

China and the European Union have emerged as the biggest supporters of the Paris accord after US President Donald Trump decided to withdraw from the pact in 2017.

The US became the world’s largest crude oil exporter the following year, surpassing the likes of Russia and Saudi Arabia for the first time in more than two decades on the back of looser environmental regulations adopted under the Trump administration.

But Stiglitz argues Europe and China should now consider climate-related trade sanctions against the US. And there is a legal precedent at the World Trade Organisation to provide them with the legal grounds to do so, he suggested.

External link

EurActiv, 28 Mar 2019: Stiglitz urges joint EU-China trade sanctions against the US on climate change