(MENAFN- KNN India) New Delhi, Dec 9 (KNN) India is ready to address the issue concerning the European Union's (EU) plan to impose a carbon tax on certain imported goods.
Union Minister of Commerce and Industry, Piyush Goyal said that“I will retaliate” if required.
The CBAM (Carbon Border Adjustment Mechanism) or carbon tax (a kind of import duty) will come into effect from January 1, 2026.
However, from October 1 this year, domestic companies from seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products, will have to share data with regard to carbon emissions with the EU.
"Bharat will address the problem of CBAM with confidence, and we will find solutions. We will see how we can convert CBAM to our advantage if it comes in. Of course, I will retaliate. You need not worry about it," he said at an industry chamber event.
CBAM will translate into a 20-35 per cent tax on select imports into the EU, starting January 1, 2026, as per a report of the think tank Global Trade Research Initiative (GTRI).
India's 26.6 per cent of exports of iron ore pellets, iron, steel, and aluminium products go to the EU.
These products would be hit by CBAM. India exported these goods worth USD 7.4 billion in 2023 to the EU.
He also said that India retaliated against the US after it imposed additional customs duties on certain steel and aluminium products.
To resolve the issues, India and the US ended all the bilateral disputes that they had in the World Trade Organisation (WTO).
The minister also asked the industry to help promote the electric vehicle mission of the country to promote sustainable growth.
There is a need to quickly replace the existing public buses and trucks in the country with electric vehicles, besides two and four-wheeler vehicles in a mission mode, he added.
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