WTO MC-13: India to challenge trade barriers disguised as green measures
Government sources told CNBC-TV18 that December 31, 2020, as the cutoff date under the European Union's (EU) deforestation regulation may impact exports from developing countries. In absence of an explicit carbon price in India, there are also concerns that any environmental measures translating into trade barriers may increase compliance burden.
As the WTO Ministerial MC-13 approaches, scheduled to convene in Abu Dhabi from February 26 to 29, 2024, India is poised to reaffirm its stance against the erection of trade barriers under the guise of sustainability initiatives.
Referring to resolutions at the previous COPs which indicated that measures taken to combat climate change shouldn't cause arbitrary or unjustifiable discrimination, government sources told CNBC-TV18 that December 31, 2020, as the cutoff date under the European Union's (EU) deforestation regulation may impact exports from developing countries. Similar measures also include CBAM (Carbon Border Adjustment Mechanism) in Europe, which sources said that won't just cause inflation in Europe but will also impact India's industry.
However, government sources expressed hope that the challenge emanating from CBAM can also be looked upon as an opportunity for the Indian industry to benefit in the long run.
In absence of an explicit carbon price in India, there are also concerns that any environmental measures translating into trade barriers may increase compliance burden.
For instance, sources pointed out that under Europe's deforestation regulation, a declaration is to be given that the produce/imports entering Europe wasn't extracted/manufactured after cutting down forests. Pointing to a 3-tier graded system of low, medium & high-risk for exported edible produce, sources explained that importers in the EU will have to prove that imports from a high-risk area are eco-friendly.
Sources added that there are fears that a possible mandate of putting QR codes and classification of imports on a 3-tier risk gradation would deter free trade.
First Published: Feb 7, 2024 4:00 PM IST
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