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Earlier this yr, Britain initiated consultations with home stakeholders on measures corresponding to a possible carbon border tax, which may mimic the European Union’s carbon border adjustment mechanism (CBAM).
Now, India desires clauses included within the deliberate FTA that may commit Britain to holding bilateral consultations with New Delhi in case a CBAM-like measure is launched, Indian officers stated.
“The concept is to make sure the India-UK deal is future-proof, and one thing like CBAM can act as a brand new tariff barrier sooner or later,” one of many officers stated.
In line with two officers the UK aspect regards this request as “unfair” as no determination has been taken on whether or not to introduce such a measure.
The EU’s CBAM, the world’s first tariff regime on cheaper imports of international polluting merchandise, entered its first section in October, inflicting disquiet amongst buying and selling companions like India, which plans to problem it within the World Commerce Organisation. The three Indian authorities sources didn’t wish to be named as discussions over the commerce pact with the UK are confidential. India’s commerce ministry didn’t reply to an emailed request for remark. The British Division for Enterprise and Commerce stated “the UK and India proceed to work in direction of an formidable commerce deal that works for each international locations. Now we have at all times been clear we’ll solely signal a deal that’s honest, balanced and in the end in the perfect pursuits of the British folks and the financial system.”
Over the course of negotiations, India-UK FTA talks have hit a number of street blocks and the formidable pact now stands delayed by over a yr from its earlier deadline.
