During the 13th ministerial conference of the World Trade Organization (WTO) in Abu Dhabi, India, represented by Commerce Secretary Sunil Barthwal, strongly articulated the nation’s reservations on the encroachment of protectionist policies masquerading as environmental safeguards. The EU’s forthcoming Carbon Border Adjustment Mechanism (CBAM), imposing a carbon tax on imports of carbon-intensive products, raises particular alarm, as it could affect Indian exports totaling $7.4 billion in key sectors like steel and fertiliser. India’s stance is that environmental challenges should be addressed within specialized multilateral environmental agreements (MEAs), respecting the varying capacities and responsibilities of developing nations.
Barthwal highlighted the necessity for the WTO agreements to provide leeway to developing countries, enabling them to industrially advance without impediment. Additionally, he underscored the potential adverse effects of conflating trade and non-trade matters within the WTO’s domain, specifically citing gender and MSMEs as examples where international discussion may be more effective in alternate organizations. The conference, which spans until February 29, provides a platform for 164 member countries to deliberate on a wide array of topics, with India voicing a clear preference for bilateral discussions, especially concerning the EU’s environmental tariffs, which it views as trade barriers in disguise.
India also demonstrated support for the idea that detailed discussions should precede any commitments to new proposals within the WTO, aiming to preserve the interest of developing nations and prevent unfair trade practices. The Indian delegation’s presentation at the conference centers on safeguarding developmental priorities and ensuring the WTO retains a trade focus, eschewing the encroachment of non-trade agendas that could fragment global trade relations.