New Delhi, together with like-minded countries, intends to insist on limiting EU measures
India plans to test the European carbon tax on imports (CBAM) at the next World Trade Organization (WTO) meeting, which will take place in late February. The country intends to assert that it will become a new trade barrier. Reuters reports this with reference to government sources.
According to senior government officials, New Delhi, along with South Africa and other like-minded countries, plans to insist on the demand to limit the EU's unilateral measures at the WTO Ministerial Conference to be held in Abu Dhabi.
"Any unilateral measures taken to combat climate change must not be a means of arbitrary or unjustified discrimination or a disguised restriction on world trade," a government official with knowledge of the WTO discussions told reporters.
Earlier, India decided to lodge a complaint with the World Trade Organization against the EU's proposal to impose tariffs of 20-35 percent on imports of high-carbon goods such as steel, iron ore and cement under of CBAM, raising the issue with EU officials during bilateral meetings.
The EU said it carefully designed the CBAM to ensure it is compatible with WTO rules, applying the same carbon price to imports as it applies to EU producers.
India and China are among several countries that have raised concerns within the World Trade Organization about the CBAM, which is intended to prevent European products from being replaced by cheaper products from countries with weaker climate regulations.
New Delhi has also opposed EU rules banning imports of products resulting from deforestation in the country of origin, which is expected to affect Indian exports by billions of dollars.
As the GMK Center previously reported, the regulatory framework of the cross-border carbon adjustment mechanism and safeguard measures on steel imports hamper the daily operations of Italian and European steel companies. This position was expressed by the Italian trade association Assofermet.
As Compraço previously reported, companies that had difficulties submitting their first CBA report due to technical problems with the relevant registry were given a one-month extension. During the transitional phase, importers had until January 31, 2024 to submit declarations for the fourth quarter of 2023.
