South Africa is criticizing the UK's proposal to implement a carbon tax on imported goods, arguing it could deepen global inequality and potentially violate World Trade Organization (WTO) rules.
According to a statement from South Africa's Department of Trade, Industry and Competition (DTIC), the tax unfairly punishes developing nations like South Africa, which relies heavily on coal for electricity generation. The DTIC calls for cooperation, not punitive measures, to encourage environmentally friendly practices.
South Africa also raised concerns about the short timeframe for implementation, making it difficult for exporters to adapt. Additionally, they consider the reporting requirements burdensome and advocate for exemptions or reduced fines for African countries, viewing the UK's plan as protectionist.
This complaint echoes South Africa's previous objections to the similar EU carbon tax (CBAM), which they believe could jeopardize billions of dollars in exports.
