Carbon tax remains intact in India-EU FTA; technical talks to address concerns: German official

In recent developments regarding the India-European Union Free Trade Agreement (FTA), a German official confirmed that the carbon tax provision will remain unchanged. This decision has sparked discussions among stakeholders, particularly given rising concerns about the impact of such taxes on trade relations and economic growth. As both India and the EU aim to promote sustainable practices, the carbon tax is seen as a crucial measure to combat climate change. However, the implementation of this tax has raised apprehensions in various sectors, prompting calls for further technical discussions to address these issues. The official emphasized the importance of these talks to ensure that the FTA not only fosters trade but also aligns with environmental goals. The ongoing negotiations signal a commitment from both sides to balance economic interests while adhering to climate commitments, demonstrating the complexities of international trade in the face of global climate challenges.