EU, US green moves to hit developing nations’ exports | India News

Feb 7, 2024

New Delhi: Unilateral steps like those imposed by EU and America Carbon Limit Adjustment Mechanism (CBAM) and deforestation regulations are not only hindering exports from developing countries like India and Brazil, but also impacting the development of poor countries, government officials said on Wednesday.
While the carbon tax is proposed to be implemented in 2026, the EU has already implemented CBAM, which requires disclosures and forces Indian companies to comply with rules that stand to increase costs. An official argued that steps to reduce carbon emissions would be calculated in local currency, while the levy would be based on estimates in euros.
Similarly, when it comes to deforestation regulations, exporters from countries like Brazil and some other parts of the world are expected to be hit hard by regulations requiring certification. An official said efforts could be made to develop new product segments and impose higher customs duties on so-called “non-green products”.
Developing countries like India have described these measures as non-tariff barriers, which will increase the cost of imports into developed markets. These steps are expected to be the focus of a crucial meeting of trade ministers of more than 160 WTO member countries in Abu Dhabi later this month, where India and several other developing countries will make demands for talks on the environment, labor and gender. Rejected arguing that these are illegal. -Trade issues should be discussed in other platforms such as the United Nations or the International Labor Organization.
The stance comes amid efforts by the EU and the US to push these issues into the WTO arena, arguing that these are new issues and relate to sustainable development. WTO officials have also supported these calls, arguing that the multilateral body could be the forum. In fact, some of these issues will be discussed in the meeting to be held in UAE, which India has rejected.
Last May, India submitted a paper outlining that the EU's increased use of unilateral measures such as carbon taxes and deforestation laws was impacting trade. The US and EU are also seeking to link labor standards and workers' rights. One official said, “Such measures could not only violate WTO rules, but also have systemic implications for international law as a whole, as unilateral action would undermine the rights and obligations of multilateral negotiating countries.” Is.”

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