EU mulls suspension of airline carbon emission tax to avoid trade war: BIFA

EUROPEAN UNION officials are reportedly considering a suspension their aviation carbon emission tax to avoid a trade war with China and the United States, according to the British International Freight Association (BIFA) newsletter.

"China and India have already forbidden their carriers to pay this fee and reports from Washington suggest the US will be the next important state to instruct its carriers not to pay the levy," said the report.

"This suspension is meant to create time to create a global agreement on climate charges for the aviation industry," said the newsletter.

"As a neutral trade body, BIFA takes no political stance on this matter but keeps a watching brief on this important topic for our members. As major users of air freight, both in the bellyhold of passenger aircraft and maindeck freighter aircraft, BIFA members must be aware that this move may impact on air freight costs in the coming months," the newsletter said.

"This is not a dispute caused by BIFA Members or business in general but is a political argument in the corridors of power in Beijing, Brussels, Washington and New Delhi. Whenever the arguments are made, BIFA will be there, promoting our members' interests." the newsletter said.