Nueva Delhi: India, during the visit of the president of the European Commission, Ursula von der Leyen, and the EU Faculty of Commissioners to the country of February 27 is expected to mark his concerns about the border border tax proposed and oppose to any type of unilateral commercial barrier in the context of the Carbon edge adjustment mechanism (CBAM).
The EU CBAM, which will be implemented from next year, is a tool to put a price through the imposition of border taxes to carbon intensive, such as iron and steel, aluminum and cement, that are entering the 27 nations of the European Union. It will put a tariff load for such products from developing countries, including India, and will impact your trade.
Private sources from the Indian list on the discussion point said that the carbon border tax will be raised during the second ministerial meeting of the Indian trade and technology council and bilateral ministerial meetings between European commissioners and their Indian counterparts.
“The matter related to concerns about any type of unilateral commercial barrier can also be discussed during the conversations at the level of delegation between Prime Minister Narendra Modi and the president of the European Commission LEP,” said an official. Although it will be the third visit of LEP to India, this will be the first visit of the Faculty of EU commissioners in the country.
India has opposed CBAM since it was conceived, arguing that the initiative will place an additional load for companies in developing economies due to integrated emissions in their products. He also argued that micro, small and medium -sized companies (MSME), including those of the steel and aluminum sectors, will be particularly affected.
Although some larger Indian companies are already developing low carbon manufacturing techniques that will reduce their exposure to CBAM tobogy, they will take time to be competitive in the EU market.