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India–EU FTA: Carbon tax threatens to undercut new tariff victories

By Freny Patel & Oscar Pandiello ( January 30, 2026, 08:50 GMT | Comment) -- The India-EU Free Trade Agreement offers geopolitical and tariff gains, but leaves Indian exporters exposed to the European Union’s Carbon Border Adjustment Mechanism, risking offsetting benefits with carbon costs unless India accelerates decarbonization and uses promised technical support.As India and the European Union move toward a landmark Free Trade Agreement, or FTA, legal and trade experts are sounding the alarm: the "optics" of lower tariffs may be a hollow victory if the EU's Carbon Border Adjustment Mechanism, or CBAM, is left unchecked....

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