EU's Carbon Tax and Regulations Pose Challenges for Businesses

The European Union's new regulations, including the Carbon Tax, pose significant challenges for businesses, potentially making EU infrastructure, automobiles, and planes costlier. Minister Piyush Goyal highlights India's concerns over these measures, which could impact Indian exports. The EU is accused of complicating free trade by intertwining various issues with trade.

The European Union's recently introduced regulations, including the Carbon Tax, are causing significant concern among businesses. Commerce and Industry Minister Piyush Goyal highlighted the potential ramifications at the Berlin Global Dialogue on Friday.

Goyal emphasized that Europe's infrastructure and industry costs are likely to rise, impacting the economy and living standards. He accused the EU of entangling too many issues with trade, complicating the free trade environment.

As India negotiates a free trade agreement with the EU, exports worth billions could be affected by regulations like the Carbon Border Adjustment Mechanism and EU Deforestation Regulation, which have been strongly contested by India.

(With inputs from agencies.)