Sunday, December 18, 2011

Creative Way to Pay for Non-Oil Based Transportation - Electrification

"World trade Organization (WTO) rules allow a nation with a long term structural trade deficit (And the United States certainly qualifies!) to place unilateral tariff on all "non-essential" imports so long as the proceeds from the tariff are used exclusively to reduce the structural trade deficit and there is no preferential treatment in the application of the tariff.'

'Oil imports are a major part of the "long term structural trade deficit" of the United States of America. This plan, railroad electrification, will reduce US imports by substantial amounts. Therefore, a substantial fraction of the government costs to implement this plan could be financed by a 1% to 2% tariff on a broad range of imports.'

'The initial reaction from foreign governments may not be positive, but our diplomats can assure them that this new tariff:

      1. is according to WTO rules. In fact, this is precisely why the exemption exists.
      2. will be effective in reducing US competition for available oil exports, which is very much in        
          the self interest of oil importers and even oil exporters.
      3. will be effective in reducing US carbon emissions, which is everyone's interest.'

'And furthermore, it is the only politically possible way that the US will do anything meaningful about either oil consumption or Climate Change. Thus, it is in their enlightened self interest to not object to the US financing part of the program with a broad but small tariff on imports. And if the tariff is implemented according to WTO rules, they have no other recourse under international law."

See: "An American Citizen's Guide to an Oil-Free Economy. A How-to Manual for Ending Oil Dependency with Valuable Bonus Information on Saving Our Economy, Our Planet and Strengthening Our National Security," by Alan S. Drake:

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