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Govt to react if CBAM hits exports
Financial Express Kochi
|July 26, 2025
Emissions Clash
INDIA HAS RESERVED the right to take steps to protect its gains from the Comprehensive Economic and Trade Agreement (CETA) if the carbon tax proposed by the UK undermines its exports, sources said on Friday.
During the negotiations on CETA the issue of the carbon tax that has been proposed by the UK under the Carbon Border Adjustment Mechanism (CBAM) was discussed but India was told by the UK side that the legislation for it has not been passed so it cannot be included in the pact.
India then conveyed to the UK that in case the CBAM measures erode its gains from the trade agreement it reserves the right to take steps to protect its exports.
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