Incompatibility of the EU Border Carbon Adjustment and WTO Law: What should be the EAEU Response?

Abstract

In the article, the correlation of the European Union Carbon Border Adjustment Mechanism with WTO law is analyzed. In particular, the study is based on Articles I, II, III, XI, XX of the GATT: the compliance of Border Carbon Adjustment with the principles of the national regime and the most favoured nation regime, the associated tariff rate, the general abolition of quantitative restrictions, general exceptions under the GATT are considered. The main problems of compatibility of EU Border Carbon Adjustment and WTO law are outlined. The measures that could be taken in the EAEU in order to protect the economies of the participating states from the negative effects caused by cross-border carbon regulation of the EU, as well as measures to develop the EAEU own carbon regulation mechanism aimed at supporting developing economies, are proposed.