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The Economic Times

Top News / The Economic Times

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India-EU FTA includes separate annexure to address EU carbon tax

The India-EU free trade agreement negotiations focused on the Carbon Border Adjustment Mechanism. A comprehensive work plan will address concerns for small and medium enterprises regarding this mechanism. Legal scrubbing of the free trade agreement has now been completed by both sides. This pact could be signed this year and implemented starting in 2027. India and the EU will engage on taking into account carbon prices paid within India.

31 Jul 2026 12:15 am