Clash Over Green Regulations: India's Stand Against EU Policies

India challenges EU's new deforestation regulation and carbon tax, saying they are unfair and affect Indian industries. Commerce Minister Piyush Goyal criticizes these measures, emphasizing their negative impact on India's exports. There is ongoing debate on safeguard duties and bilateral discussions to resolve arising trade issues.

India has voiced strong objections to the European Union's recently implemented deforestation regulation and looming carbon tax, labeling them as unfair impediments to trade. Commerce and Industry Minister Piyush Goyal raised these concerns during the inauguration of the Federation of European Business in India, focusing on how such measures could undermine Indian industries.

The EU's deforestation regulation, effective from May 2023, aims to halt imports of certain products, such as coffee and leather, deemed to contribute to deforestation. Countries like Brazil, India, and the US have opposed this move, arguing it disrupts trade dynamics. Meanwhile, the Carbon Border Adjustment Mechanism is set to impose additional duties on sectors like steel and cement by 2026, a proposal India finds unilateral and harmful to its exports.

The Commerce Minister highlighted that such measures compromise bilateral trade relations, suggesting that mutual discussions are crucial for addressing these disputes. The issue of safeguard duties on steel imports remains contentious, prompting India to consider retaliatory measures under WTO provisions.

(With inputs from agencies.)