The United Kingdom has clarified that its proposed Carbon Border Adjustment Mechanism (CBAM) is not part of the India-UK Free Trade Agreement. UK Trade Commissioner for South Asia Harjinder Kang said the trade pact and the carbon border tax are separate matters, with any CBAM-related concerns to be addressed independently.
Kang acknowledged that the UK's future carbon border tax could affect certain Indian exports, particularly carbon-intensive products such as steel. However, he emphasized that the FTA remains unchanged and both countries will continue engaging through separate discussions to resolve any concerns arising from the UK's CBAM policy.
Reference: ANI News