Summary
- The EU is pushing for sustainability measures like deforestation rules and a carbon tax on imports which could hinder free trade negotiations with India.
- The next round of talks for the proposed India-EU FTA will include discussions on the Carbon Border Adjustment Mechanism (CBAM) and EU deforestation regulation.
- Indian industry believes that these measures are protectionist and violate WTO agreements, making Indian exports less competitive in Europe.
- Despite concerns, the EU ambassador insists that CBAM is part of their climate agenda and aims to promote decarbonization and sustainability.
