The threat of an aerospace trade war between Europe and the rest of the world has escalated after India joined China in threatening retaliation over the European Commission's carbon emissions charges. Chinese airlines have cancelled $14bn (£8.8bn) of orders with European aircraft manufacturer Airbus following the introduction of the charges and a senior Indian official has now warned there are "lots of measures" that India could take if the EC does not back down.
"The question is, are you [the European Union] provoking the world into a trade war?'," the official told Reuters.
The EU Emissions Trading Scheme (ETS) requires airlines flying to or from Europe to buy carbon permits to offset their emissions from January 1 this year. However, non-European governments are furious that the charges cover the entire flight and not just European aerospace. Read More
