India-EU FTA Includes Separate CBAM Annexure

The India-EU free trade deal includes a separate annexure on the Carbon Border Adjustment Mechanism (CBAM), signaling a negotiated approach to carbon border taxes. A comprehensive review details tariff cuts, sectoral benefits, and geopolitical context. The deal is described as 'game-changing' but sanctions evasion risks may complicate negotiations. Could impact exports of steel, aluminum, and other carbon-intensive goods, setting a precedent for climate-linked trade barriers.