EU aviation tax is non-tariff barrier: govt

Srirat Rastapana, director-general of the department, said in a statement yesterday that although the measure applied to all airlines, European and non-European, it was a unilateral measure, one that would increase operating costs for airlines, and the cost would be passed on to users through higher fares and logistics costs. Thai exports transported by air to the European Union would carry a higher cost than products manufactured in the EU, she said, adding that this would also have negative impacts on tourism. 

Starting on January 1, airlines will be taxed on carbon emissions for flights in and out of Europe, as a measure to reduce greenhouse gases. To avoid punishment, airlines are allowed to join the carbon-emissions trading scheme to promote green energy.

“If the EU imposes the measure, as well as others to control transport and other businesses aside from aviation on the same grounds, and if other countries adopt similar policies, the impacts will be widespread,” Srirat said. 

 During the 17th Conference of the Parties (COP 17) in South Africa from November 28 to last Friday, the EU, which accounts for 14.04 per cent of global greenhouse-gas emissions, played an active role in persuading advanced and developing economies to begin work on a binding agreement to reduce emissions. China (23.33 per cent of global emissions), the United States (18.11 per cent), India (5.7 per cent), Russia (5.6 per cent) and Japan (4 per cent) remain uncommitted to the Kyoto Protocol, which expires next year. 

 

No agreement 

The conference did not produce the binding agreement itself, so leaders will meet again next year in Qatar. 

Thailand is now the world’s 22nd-largest polluter.

“Notably, more World Trade Organisation members are imposing environmental measures that are connected to border trade. On the aviation measure, the EU exploits the loophole that allows member countries to impose environmental measures. However, the measures must not be discriminatory and must be based on scientific proof,” Srirat said. 

She noted that the WTO rules were very broad, creating discrepancies in interpretation and enforcement, particularly in service industries such as transport and tourism. 

There is a need to revise and modernise the rules to cope with the global environment, the director-general said. 

The 191 countries joining COP 17 recognised that more frequent and severe natural disasters were having an impact on the global economy. 

Under the United Nations Framework Convention on Climate Change, member countries are urged to help developing countries mitigate the impacts of global warming for economic sustainability. 

Srirat, who attended the meeting, noted that it was clear that international trade could be negatively affected by environmental-protection measures, though there might be some supportive measures accompanying them.