U.S. federal climate policy and competitiveness concerns the limits and options of international trade law

U.S. federal climate policy and competitiveness concerns the limits and options of international trade law

One of the major obstacles toward mandatory limits on greenhouse gas emissions in the United States is the impact of such limits on the international competitiveness of US firms. Limits on greenhouse gas emissions -- be they in the form of regulation, a carbon tax or a cap-and-trade system1 – may impose extra costs on US industries. Where foreign firms do not bear similar costs, US firms may lose their competitive edge.