This is the American Iron and Steel Institute's position on the border adjustment provision in the House-passed climate/emissions bill.  Some the the dynamics between cost, timing and amounts of border adjustments are below the fold.

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American Iron And Steel Institute Says Climate Bill As Passed By House Puts Steel Industry At Competitive Disadvantage; Bill Must Have Important Modifications As It Heads To The Senate

June 29, 2009

PR Newswire

WASHINGTON - The American Iron and Steel Institute (AISI) expressed its disappointment today over the House passage of the American Clean Energy and Security Act of 2009.

"We believe this bill has moved at a rushed pace that has not allowed for full debate of provisions that are critical to the steel industry, which was clearly underscored by the fact that the bill passed in the House by only seven votes," said Thomas J. Gibson, AISI president and CEO. "The bill, as passed, will need important modifications as it moves through the Senate.

"We appreciate the hard work of Congressmen Doyle and Inslee and we look forward to continuing our work with them as this legislation moves through the process," said Gibson. "However, we can say - with certainty - that if this bill is enacted as it presently stands, U.S. steelmakers and our workers will be at a significant competitive disadvantage in the global marketplace. Several modifications must be made to achieve the bill's stated purpose of avoiding job loss and emission migration to overseas markets."

I had not heard this one.  Allegedly from Luo Ping, director-general of the China Banking Regulatory Commission in February 2009.

"We hate you guys … we know the dollar is going to depreciate, so we hate you guys, but there is nothing much we can do."

Two days after Obama said we should not have import taxes in the climate/emissions bill because of protectionsim, the wacko free traders at the WTO say just the opposite.

Import taxes on goods coming from countries that fail to meet environmental standards might be among the measures exceptionally permitted under global free trade laws, WTO said.

The principle of establishing import taxes (also known as border adjustments) on cost differentials is an important one.  Whether or not the climate/emissions bill passes, the principle of dealing with regulatory and cost disparities through border adjustments is an important one to balance trade and re-establish credibility in the trade regime.

Trade can only be good if it is balanced.  If it is unbalanced, then the results are disruptive at best and catastrophic at worst.

China is now eyeing oil resources in Iraq.

Chinese oil companies are expected to bid for the rights to develop Iraq’s oil fields in auctions that are set to start Tuesday, although Sinopec, the China National Petroleum Corporation and the China National Offshore Oil Corporation all declined to comment Monday about their bidding strategies.

In another sign of China’s interest in Iraqi oil fields, Sinopec, China’s refining giant, offered $7.22 billion on Wednesday to buy Addax Petroleum, a Swiss-Canadian company with operations in the Kurdistan region of Iraq and in West Africa. If Addax’s shareholders and Canadian regulators approve the deal, which Addax’s board is recommending, it would be China’s largest overseas energy acquisition.

The Australian Rio Tinto deal was blocked by the Rio Tinto board, though the Australian government was for it.  It will be interesting to see what the Canadians do.