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CBAM & textile tariffs: Key hurdles in EU-India trade deal

Insights

• The ongoing India-EU FTA negotiations are crucial, particularly due to the looming impact of the EU Carbon Border Adjustment Mechanism (CBAM).
• India's textile sector already faces higher tariffs compared to competitors like Bangladesh and Turkiye, and CBAM could further raise costs.
• The mechanism aims to impose carbon tariffs on imports, affecting India's trade competitiveness.