The European Court of Justice on?Wednesday backed a law that permits charging of an emissions tax on airlines flying to and from the continent .
The court held that application of the emissions trading scheme—under which airlines will be charged from the new year—did not infringe international law or the jurisdiction of other countries. India, the US and China have opposed the European plan. The US has already vowed “appropriate action” if Europe goes ahead with its plan.
In a world beset with protectionist tendencies, the court’s decision will enable the use of judicial fora to wage trade battles that were otherwise in the political domain.
The possibility of a free-for-all in various trade disputes, unrelated to aviation, too, has been greatly enhanced. The chances of free trade agreements between the European Union and other countries being scuttled cannot be ruled out now.