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India has retained its third-party rights in the dispute raised by Russia against the European Union over its Carbon Border Adjustment Mechanism (CBAM); the WTO’s Dispute Settlement Body has agreed to establish a panel for this dispute. This will allow New Delhi to participate in proceedings that could significantly impact Indian exporters facing the EU’s carbon-related trade measures.
Argentina, Brazil, Canada, China, Chinese Taipei, Indonesia, Japan, Saudi Arabia, South Korea, Malaysia, Norway, Paraguay, Singapore, Switzerland, Thailand, the United Kingdom and the United States have also reserved their third-party rights in the dispute.
The dispute could provide an important WTO examination of the interface between climate policy and trade rules, with the panel’s findings potentially influencing how carbon-border measures are assessed under the multilateral trading system.
Third-party status would enable India to present its views on the WTO issues raised by Russia without becoming a principal party to the dispute. The case is particularly relevant for India as its exporters of carbon-intensive products such as steel and aluminium face additional compliance and carbon-cost requirements under the EU’s CBAM regime.
Russia submitted its second request for the establishment of a dispute panel after the EU blocked its first request at the DSB meeting on July 10. The panel will examine Russia’s allegations that the EU’s CBAM package creates significant trade barriers for covered goods imported into the bloc and is inconsistent with the EU’s WTO obligations.
Russia has also challenged the allocation of emission allowances to certain companies under the EU Emissions Trading System, alleging that the arrangement amounts to an export subsidy that strengthens the competitiveness of selected EU industries.
TOPICSEuropean UnionRussiaThis article was first uploaded on September twenty-five, twenty twenty-six, at forty minutes past six in the evening. © The Indian Express (P) Ltd