
Congress leader Jairam Ramesh has urged that any upcoming India-EU Free Trade Agreement (FTA) must address the EU's Carbon Border Adjustment Mechanism (CBAM). Ramesh described CBAM, effective from 2026, as an "unacceptable non-tariff barrier" that could force Indian steel and aluminium exporters to cut prices by 15-22% to cover carbon taxes. He highlighted that documentation requirements also add costs for Indian exporters, suggesting the FTA needs to account for these impacts.
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