World Bulletin/News Desk
The Senate unanimously passed a bill on Saturday that would shield U.S. airlines from paying for their carbon emissions on European flights, pressuring the European Union to back down from applying its emissions law to foreign carriers.
The European Commission has been enforcing its law since January to make all airlines take part in its Emissions Trading Scheme to combat global warming, prompting threats of a trade fight.
The Senate approved the bill shortly after midnight, as it scrambled to complete business to recess ahead of the Nov. 6 congressional and presidential elections.
Republican Senator John Thune, a sponsor of the measure, said it sent a "strong message" to the EU that it cannot impose taxes on the United States.
"The Senate's action today will help ensure that U.S. air carriers and passengers will not be paying down European debt through this illegal tax and can instead be investing in creating jobs and stimulating our own economy," Thune said in a statement.
The House of Representatives has passed a similar measure, and could either work out differences with the Senate's version or accept the Senate bill when Congress returns for a post-election session.
So far, nearly all airlines have complied reluctantly with the EU law, but Chinese and Indian carriers missed an interim deadline to submit information required under it.
China earlier this year threatened retaliation - including impounding European aircraft - if the EU punishes Chinese airlines for not complying with its emissions trading scheme.
The dispute between China and the EU froze Airbus purchase deals worth up to $14 billion, though China signed an agreement with Germany for 50 Airbus planes worth over $4 billion during Chancellor Angela Merkel's visit to Beijing last month.
The Senate bill gives the U.S. transportation secretary authority to stop U.S. airlines from complying with the EU law.
But new amendments agreed to during negotiations among lawmakers said the secretary could only do so if the EU trading scheme is amended, an international alternative is agreed to, or the United States implements its own program to address aviation emissions.
This increases pressure on the U.N. International Civil Aviation Organization (ICAO) to devise a global alternative to the EU law.
Connie Hedegaard, the European Climate Commissioner, said on Saturday that while the bill encourages the United States to work within the U.N. organization for a global deal on aviation emissions, she is skeptical that Washington will accept such a deal.
"It's not enough to say you want it, you have to work hard to get it done," she told Reuters on Saturday. "That means that the U.S. needs to change its approach in ICAO and show willingness to actually seal a meaningful global deal that will facilitate action."
Annie Petsonk, a lawyer for the Environmental Defense Fund, said the bill will put pressure on the U.N. body, which has been working on a global framework for years.
"Passage of the Thune bill amps up the pressure on ICAO to move swiftly to reach a global agreement on addressing aviation's global warming pollution," she said.
Bourses in both Paris and Frankfurt dipped after a report from data monitoring company IHS Markit showed Eurozone private sector business activity slowed sharply in June while staying in expansion mode.
Analysts said that while the downturn in the headline readings was disappointing, the economy continued to put in a strong performance.
Crude prices stabilised after diving more than two percent on Tuesday on increasing fears of a global supply glut, as continued production in the US and elsewhere offsets an OPEC output cut deal.
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However, most other regional markets struggled after Monday's healthy gains, despite being given a positive lead from Wall Street where the Dow and S&P 500 closed at fresh record highs.
The purchase in one fell swoop gives Amazon, which until now has operated almost entirely on the internet, a big presence in the brick-and-mortar world on Main Street, with more than 450 stores in the US, Canada and Britain.
"The Bank of Russia Board of Directors decided to cut the key rate to 9.00 percent per annum," the bank said in a statement. The cut follows a half-point decrease in late April.
Equity traders have suffered a fraught week as the crisis engulfing Donald Trump picks up pace, technology firms tumbled from recent highs and energy plays were hammered by plunging oil prices.
"In May 2017, passenger car registrations across the EU increased by 7.6 percent to 1.387 million units," ACEA said in a statement.
In the eurozone, Frankfurt's DAX 30 index climbed 0.4 percent to 12,746.05 points, and the Paris CAC 40 gained 0.5 percent to 5,243.53 compared with the close on Thursday.
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While a "rebalancing of the market" was "underway," it was "at a slower pace than originally anticipated," the Organization of Petroleum Exporting Countries wrote in its latest monthly oil market report.