Airlines in call to prevent trade war
Source: Agencies |
February 13, 2012, Monday
|
Print Edition
Print Edition
GLOBAL airlines are calling for a United Nations-brokered deal to prevent a row over aviation emissions between China and the European Union spilling into a damaging trade war.
Yesterday's call by the head of the International Air Transport Association (IATA) comes amid signs that the EU may be willing to soften a unilateral stance that also risks souring efforts to resolve Europe's sovereign debt crisis with Chinese support.
Tony Tyler, IATA's director general, said in Singapore that airlines had become wedged between conflicting domestic laws after China ordered its airlines not to join the EU's compulsory market-based system for regulating airline emissions.
"The Chinese move to prevent its airlines from taking part in the Emissions Trading Scheme is a very bold move and it pushes the Chinese carriers very much into the front line of this particular dispute," Tyler said.
"I very much hope, of course, that we are not seeing the beginning of a trade war on this issue and eventually wiser counsels will prevail," he said.
China was an early opponent of the EU's scheme, which has also drawn protests from the United States and India, and the escalating row is threatening to hamper efforts to work out an international solution to Europe's sovereign debt crisis.
Tyler said the International Civil Aviation Organization's chambers were the only forum for resolving the row and he and other airline industry officials noted that the EU had indicated willingness to avoid further isolation.
Yesterday's call by the head of the International Air Transport Association (IATA) comes amid signs that the EU may be willing to soften a unilateral stance that also risks souring efforts to resolve Europe's sovereign debt crisis with Chinese support.
Tony Tyler, IATA's director general, said in Singapore that airlines had become wedged between conflicting domestic laws after China ordered its airlines not to join the EU's compulsory market-based system for regulating airline emissions.
"The Chinese move to prevent its airlines from taking part in the Emissions Trading Scheme is a very bold move and it pushes the Chinese carriers very much into the front line of this particular dispute," Tyler said.
"I very much hope, of course, that we are not seeing the beginning of a trade war on this issue and eventually wiser counsels will prevail," he said.
China was an early opponent of the EU's scheme, which has also drawn protests from the United States and India, and the escalating row is threatening to hamper efforts to work out an international solution to Europe's sovereign debt crisis.
Tyler said the International Civil Aviation Organization's chambers were the only forum for resolving the row and he and other airline industry officials noted that the EU had indicated willingness to avoid further isolation.
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