Wider Trade Triggers for US Climate Package

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The US landmark climate package is a form of industrial policy: the aim is to both establish a US base for manufacturing low-carbon technologies and rapidly deploy them using loans, grants and tax, particularly for more nascent technology. In the process, Washington has triggered trade concerns, both from lower-income countries wary about new trade barriers and from wealthy trade partners concerned about cementing higher costs over the long run and losing out on their own industrial base.

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