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🗞️ Driving the news: India plans to voice concerns over the European Union's Carbon Border Adjustment Mechanism (CBAM) and EU Deforestation Regulation (EUDR) in talks with Germany
• These measures, set to take effect in 2026, could negatively impact Indian exports, including aluminum, steel, coffee, palm oil, and leather products
• Commerce Minister Piyush Goyal will discuss these issues with German Vice-Chancellor Robert Habeck during their meeting in Delhi
🔭 The context: The CBAM will apply to carbon-intensive sectors, imposing costs on imports based on their carbon footprint, which India argues violates global trade rules
• Meanwhile, the EUDR aims to restrict the import of products linked to deforestation, impacting exports like coffee and wood
• Compliance with these regulations has already caused delays in shipments of Indian seafood and spices
🌍 Why it matters for the planet: While the CBAM and EUDR are intended to reduce global emissions and deforestation, they pose significant challenges for developing economies reliant on exports of regulated goods
• Balancing environmental goals with fair trade practices is crucial to ensure that sustainability measures do not disproportionately harm exporters in countries like India
⏭️ What's next: India will continue negotiations on the India-EU Free Trade Agreement, with the next round of talks scheduled for November 2024
• Both sides will need to address core trade issues, including compliance with sustainability rules and their impact on trade
💬 One quote: "The domestic industry fears a loss of export prospects," reflecting concerns from Indian businesses regarding the new EU regulations
📈 One stat: The CBAM will initially target seven carbon-intensive sectors, including aluminum and steel, starting in 2026
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