EU, US green moves on trade to hit developing nations' exports

 EU, US green moves on trade to hit developing nations' exports

As per the times news network,Unilateral moves by the European Union and the US, such as the imposition of carbon border adjustment mechanism (CBAM) and deforestation rules, are seen to be hampering not just exports from developing countries, such as, India and Brazil but also stand to impact the develop ment of poor nations,a per govt officials.

While carbon tax is proposed to be introduced in 2026,EU has already rolled out CHAM, requiring disclosures and forcing Indian companies to comply with the regulations that stand to push up costs. Steps to negate carbon emissions will be calculated in local currency while the levy will be based on estimates in euros, adding to the burden.

Similarly, when it comes to deforestation rules exporters from countries, such as, Brazil and some other parts of the world are expected to be hit hard by rules requiring certification. An official said there may be attempts to develop new product seg- ments and impose higher customs duties on the so-called "non-green products".

Developing countries like India have described the measures as non-tariff barriers, which will increase of cost of imports into developed markets.

These moves are expected to come into focus at a meet of trade ministers from over 160 WTO member countries in Abu Dhabi later this month

where India and several other developing countries have rejected demands for negotiations on environment, labour and gender, arguing that these are non-trade issues and should be discussed in other platforms like UN or International Labour Organisation.

The stand comes amid attempts by the EU and the US to thrust these issues into the WTO arena, arguing that these are new issues and are related to sustainable deve lopment. WTO officials have also backed these calls, arguing that the multilateral body can be the platform. In fact, at the meeting in UAE, there will be a discussion on some of these issues, with India rejecting the talks.

Last May, India had sub- mitted a paper underlining that there is an increase in the use of unilateral measures such as EU's carbon tax and deforestation law which is impacting trade. The US and the EU are also seeking to add labour standards and workers' rights. "Such measures may not only violateru les of WTO but also have systemic implications for inter national law as a whole, since unilateral action undermines multilaterally negotiated rights and obligations of countries," as per the govt officials.