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The EU’s carbon border tax applies to Indian exports without exceptions, despite a new trade deal.
The EU's Carbon Border Adjustment Mechanism (CBAM) will apply to Indian exports without exceptions, despite the new India-EU Free Trade Agreement, according to German official Jochen Flasbarth.
CBAM, now fully active since January 2026, imposes fees on carbon-intensive imports like steel and cement to prevent carbon leakage and ensure fair competition amid the EU’s domestic carbon pricing.
While the FTA brings trade benefits, CBAM costs may offset some gains.
Both sides have agreed to technical talks to address concerns, but no exemptions will be granted.
They also plan to sign a critical minerals pact in June 2026 to reduce reliance on China.
El impuesto fronterizo de carbono de la UE se aplica a las exportaciones indias sin excepciones, a pesar de un nuevo acuerdo comercial.