India Braces for Non-Tariff Barriers: EU Carbon Tax, US Trade Policy
Dec 18, 2024 12:31
India's DGFT warns of potential non-tariff barriers from US and EU, including the EU carbon tax, as they seek to boost domestic manufacturing. The US and EU's measures could impact Indian exports, but the DGFT says the impact remains to be seen.
New Delhi, Dec 18 (PTI) India will have to prepare itself in future to deal with issues like non-tariff and unilateral duty-related barriers like the EU carbon tax, a senior government official said on Wednesday.
Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi said that countries like the US and the European Union (EU) are trying to boost their domestic manufacturing through such measures.
"So the US has been trying to boost its domestic manufacturing through the Inflation Reduction Act and CHIPS Act, the EU is trying to do it through CBAM (Carbon Border Adjustment Mechanism)...deforestation regulation is another mechanism of putting non-tariff barriers on goods coming from developing economies.
"So both the combination of non-tariff measures as well as potential tariff measures in clear violation of WTO (World Trade Organisation) commitments is something which India has to brace up in future to deal with," Sarangi said.
He was speaking at CII's export competitiveness conclave.
Asked about US President-elect Donald Trump's threat to impose higher duties, he said one has to wait and watch to see the implications.
The DGFT said that it will be "very" difficult to decipher from one or two sentences which Trump is making.
"But what I have understood from what he was saying is that his main intent is that reciprocity will matter in future, he said.
He noted that such measures would be a violation of WTO norms but the last Trump administration has imposed high duties on certain products on the grounds of national security.
"So one will have to wait and watch and see. There are many areas where we have tariff peaks but we don't necessarily export to the US," Sarangi said.
For example in agriculture, India has high duties but it does not export necessarily to the US market.
"So if the US will impose duties on that, it will not harm us in a major way but there would be a few items where this reciprocal thing might impact us," he said adding one has to wait for the fine print before guessing an impact.
Home »
Market News » India Braces for Non-Tariff Barriers: EU Carbon Tax, US Trade Policy
DISCLAIMER - This article is from a syndicated feed. The original source is responsible for accuracy, views & content ownership. Views expressed may not reflect those of rediff.com India Limited.
You May Like To Read
MORE NEWS
Embassy REIT Leases 2.07 Lakh Sq Ft to Rubrik...
Embassy REIT has leased 2.07 lakh sq ft office space in Bengaluru to cybersecurity firm...
Embassy REIT Leases 2.07 Lakh Sq Ft Office...
Embassy Office Parks REIT has leased 2.07 lakh sq ft of office space in Bengaluru to...
SAIL Supplies 45,000 Tonnes Steel for Mahakumbh...
SAIL, India's largest steel maker, has supplied 45,000 tonnes of steel for the upcoming...
Govt to Give Rs 35,000 Cr LPG Subsidy to IOC,...
The Indian government is likely to provide a Rs 35,000 crore subsidy to IOC, BPCL, and...
Equity MF Inflows Surge 14% in Dec, Small &...
Mutual fund equity schemes saw a 14% increase in inflows in December, reaching Rs...
Fintech Tide Targets 10 Lakh MSMEs by 2025: New...
Tide, a business financial platform for MSMEs, aims to onboard 5 lakh more businesses...
Fenado AI: No-Code App & Website Builder |...
Inshorts co-founder Azhar Iqubal launches Fenado AI, a no-code platform for building...
Keystone Realtors Sales Surge 40% in Q3: Rs 863...
Keystone Realtors, known for its Rustomjee brand, reported a 40% jump in sales bookings...
Tata Motors Global Wholesales Up 1% in Q3 FY25
Tata Motors reports a 1% increase in global wholesales for Q3 FY25, reaching 3,41,791...
Women-Centric Fintech Startups: RBIH &...
Reserve Bank Innovation Hub and IIMA Ventures launch Swanari TechSprint 3.0 to support...
Read More »