Commerce and Industry Minister Piyush Goyal has urged the European Union (EU) to adopt a more equitable approach to its trade policies, particularly concerning the controversial EU Deforestation Regulation (EUDR) and Carbon Border Adjustment Mechanism (CBAM).
Goyal emphasised the need for an “outcome-oriented” and “meaningful” Free Trade Agreement (FTA) between India and the EU, devoid of “extraneous items” that could hinder progress. He expressed concerns about the potential impact of the EU’s environmental regulations, such as the EUDR and CBAM, on Indian industries.
The EUDR, which aims to curb deforestation and forest degradation, could significantly impact Indian exports of commodities like leather, wood furniture, and paper to the EU. Similarly, the CBAM, a carbon tax on imports of certain carbon-intensive products, could impose additional costs on Indian exporters of steel, cement, and fertilisers.
Goyal criticised the EU’s unilateral approach to these regulations, arguing that they undermine the spirit of international cooperation and could lead to retaliatory measures. He stressed the importance of a balanced and mutually beneficial trade relationship between India and the EU.
The Indian government has already taken steps to address the EU’s trade policies, including proposing retaliatory tariffs on certain EU products. However, Goyal reiterated India’s preference for a cooperative approach and urged the EU to reconsider its stance.
The Federation of European Business (FEBI), a newly launched chamber of EU businesses in India, aims to foster stronger economic ties between the two regions. By providing a platform for dialogue and collaboration, FEBI can help to address trade-related challenges and promote mutual interests.
