India plans to challenge EU carbon tax at WTO

• Indian plans to file a complaint to the World Trade Organisation over the European Union’s proposal to impose 20% to 35% tariffs on imports of high-carbon goods like steel, iron ore and cement from India, top government and industry sources said.
• This is part of New Delhi’s strategy to combat the EU’s Carbon Border Adjustment Mechanism (CBAM) designed to push local industries to invest in new technologies to bring down carbon emissions, while also raising the issue in bilateral talks.
• Piyush Goyal, India’s trade minister, is on a visit to Brussels to meet EU leaders to address bilateral issues and promote trade.
• “I’m sure the intention is not create to a barrier to trade,” he told a news conference after his meetings.
• “We remain engaged, we are discussing the issue and we have a long time ahead of us in which we will be working together to find the right solutions to this.”
• EU trade chief Valdis Dombrovskis said the European Commission had designed CBAM carefully so that it was compatible with WTO rules, applying the same carbon price on imported goods as on domestic EU producers.

External Link : https://www.reuters.com/world/india/india-plans-challenge-eu-carbon-tax-wto-sources-2023-05-16/