India to exclude non–trade issues at WTO talks, to engage with EU on CBAM.

Syllabus: GS-III

Subject: Economy;

Topic: Trade & External sector ( WTO &Issues).

Issue: WTO.

Context: India to focus on trade-centric discussions at the WTO conference, avoiding non-trade issues like labour and climate.

Key Points for Discussion:

  • India is actively engaging with the EU regarding the Carbon Border Adjustment Mechanism (CBAM) to protect its industries from adverse effects.
  • It opposes unilateral environmental policies like the EU’s carbon tax and deforestation laws, which it believes could harm international trade dynamics.
  • India suggests discussing social issues like women’s economic empowerment in UN-specific forums rather than at the WTO to prevent impacts on its WTO rights and obligations.Top of Form
CBAM (Carbon Border Adjustment Mechanism): CBAM aims to prevent carbon leakage, ensuring fair competition globally. It imposes carbon prices on imports, encouraging emission reduction and cleaner production while generating revenue for climate policies.
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