Trade wars begin?

25/02/2009 12:00 - 711 Views

The prospect of trade wars between the United States and the European Union (EU) got a little closer to erupting as noises that the EU is preparing to impose trade duties on biodiesel.

Both the European Union and the United States subsidize their biodiesel industries. However the complaint is that the US benefits twice: once from the Federal government and also from subsidies granted by individual European governments when the fuel is sold on the continent.

The dispute shows that despite talks about the need for global cooperation to fight climate change, countries may come into conflict as demand grows for important products and services. The move against American producers comes as countries maneuver to protect their economies from being undercut by foreign imports to safe guard jobs and industries.

by Martha R Gore, Watchdog Politics Examiner

February 23, 3:58 PM

Source: www.examiner.com