India to flag concerns over EU's carbon tax, deforestation regulation in WTO meet next year

economictimes.indiatimes.com:

carbon tax, on their domestic industry, during WTO ministerial meeting next year, an official said. The four-day 13th ministerial conference (MC) of the World Trade Organization (WTO) is scheduled for February 26 next year in Abu Dhabi. MC is the highest decision-making body of WTO. «These issues will come up in the WTO in a big way. Countries like India will oppose these measures in the WTO,» the official said. In the first seven months of this year, the EU has introduced four regulations on climate change and trade. These are carbon border adjustment mechanism (CBAM); deforestation regulation; including shipping in the EU's emissions trade system; and Foreign subsidies regulation. EU member Germany too has announced a supply chain due diligence act (SCDDA). «This will become a major issue in the MC13. Many member countries have already submitted papers against some of these regulations in the WTO. It looks like discussions will happen on these regulations and a general view will also converge,» the government official, who did not wish to be named, said. Geneva-based 164 member multi-lateral body WTO deals with global exports and import-related norms. Besides, it adjudicates trade disputes between the member countries.

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According to think tank Global Trade Research Initiative (GTRI), the EU will collect billions annually once these provisions come into operation completely. They need these funds to provide subsidies to their companies and farmers. The carbon border adjustment mechanism (CBAM) will have an adverse impact on India's exports of metals such as iron, steel and aluminium products to the EU. It will come