Meanwhile, the Obama Administration has signaled that it is ready to turn up the political heat on the EU. In a December 16 letter leaked to the Financial Times, Secretary of State Hillary Clinton warned the European Commission that if it does not lift the application of ETS to U.S. carriers then the U.S. government will be “compelled to take appropriate action.” The State Department has not divulged what form this action might take, but it has said that it continues to have “strong legal and political objections” to the application of ETS to non-European carriers, adding that it does not consider the ECJ ruling “as resolving these objections.”
According to the State Department, 42 states are now united in their opposition to the ETS, including Russia, China, India, Japan and Brazil. The Chinese government reportedly has already blocked one order for Airbus airliners by a state-owned airline, and it and other governments have not ruled out taking trade sanctions against EU companies in retaliation over ETS.
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