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The deals with G.M., the Ford Motor Company and the Chrysler Group were among a flurry of import allowances, including large wheat and aircraft purchases, that were expected from China ahead of Prime Minister Wen Jiabao's visit to the United States, scheduled for early December.
The deals with GM, Ford Motor and the U.S. unit of DaimlerChrysler, as well as aircraft and wheat purchases, were part of a string of import allowances expected from China ahead of Prime Minister Wen Jiabao Wen Jiabao 's visit to the United States, scheduled for early December.
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The import allowance requirement approach has its own problems, however.
The problem with import allowance requirements is that they can damage international trade relations.
And if the hunters can't get this bucket-list item completed in time, can they then plead to their members of Congress for another trophy import allowance?
It's an open question whether this approach is superior to an import allowance requirement, whereby imports of a small set of specific commodities must carry with them CO2 allowances.
These hunters didn't get the heads and hides into the country in time, so they have pleaded with Congress for an import allowance, even though the species is listed as threatened with extinction.
The two live political options appear to be the output-based updating allocation mechanism in the Waxman-Markey legislation and the import allowance requirement, typically associated with the former Lieberman-Warner bill.
One alternative approach is an import allowance requirement, whereby imports of highly carbon-intensive goods (in terms of their manufacture) must hold allowances for the U.S. cap-and-trade system, mirroring requirements on U.S. sources, if those imports come from countries which have not taken comparable climate policy actions.
Subject to possible improvements on the House floor or in the Senate, the Waxman-Markey approach of combining output-based updating allocations in the short term for select sectors with the option in the long term of a Presidential determination (under stringent conditions) for import allowance requirements for specific countries and sectors seems both sensible and pragmatic.
This may sound as though the threat of import allowance requirements in the U.S. and European cap-and-trade systems would be a powerful incentive for China to undertake emission reductions at home in order to avoid the border tax on its cement exports.
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