India seeks clarity from EU on carbon tax, steel rules during FTA talks

During week-long India-EU FTA negotiations, New Delhi pressed for predictable implementation of the EU's carbon tax and proposed steel regulation to ensure balanced trade terms

India bargained hard for “clarity and predictability” in the implementation of the European Union’s (EU’s) emerging regulatory measures, including the carbon tax and proposed new steel regulation, during the free trade agreement (FTA) talks with the trade bloc this week.

 

A senior team of negotiators from the EU was in New Delhi from 3 to 7 November for discussions on the proposed India–EU FTA.

 

Who led the discussions and what progress was made?

 

As part of the negotiations, Commerce Secretary Rajesh Agrawal held detailed meetings with Sabine Weyand, Director-General for Trade at the European Commission, to review the progress achieved across various negotiating tracks. The two-day meeting between Agrawal and Weyand focused on resolving key outstanding issues in the FTA talks for a “positive resolution.”

 

Both sides agreed to further accelerate efforts toward a balanced trade agreement.

 

What did the commerce secretary emphasise?

 

“The commerce secretary reaffirmed India’s commitment to achieving an outcome that advances economic growth and development while ensuring a fair and balanced distribution of benefits. He also emphasised the need for clarity and predictability in the implementation of emerging EU regulatory measures, including the Carbon Border Adjustment Mechanism (CBAM) and proposed new steel regulation,” the commerce department said on Friday.

 

Which issues saw progress in the India-EU trade talks?

 

According to the official statement, both sides made “substantive progress” across several negotiating areas and “narrowed down divergences,” achieving a common understanding on many issues.

 

The week-long discussions were part of ongoing efforts to advance negotiations toward a comprehensive, balanced, and mutually beneficial trade agreement. The deliberations covered a wide range of chapters, including goods, services, investment, trade and sustainable development, rules of origin, and technical barriers to trade.