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themotioncloud
The UK has clarified that the country’s carbon board adjustment mechanism (CBAM) regulation is outside the realm of the free trade agreement (FTA) signed with India and all discussions on the matter between the two countries would happen “outside this space”.
Prime Minister Narendra Modi and his UK counterpart Keir Starmer are expected to meet soon to officially sign the India-UK FTA, which has the potential to increase bilateral trade by over £25 billion annually, an UK official said on Tuesday.
In the area of mobility, the UK has not touched its immigration system at all or created extra visa categories for India, and concessions are largely centred around creation of 1,800 visa slots annually for professionals like chefs, musicians, and yoga instructors, he pointed out.
“The carbon tax is not part of the FTA. So that’s actually got nothing to do with what we’re talking about on this particular FTA. Essentially, that conversation happens outside of this space..,” the official said in an interaction.
The CBAM, to be implemented in January 2027, will place a carbon tax on specified goods in the aluminium, cement, fertilizer, hydrogen, and iron and steel sectors.
India had been negotiating for flexibilities under CBAM as part of the FTA as carbon taxes could nullify the other market access benefits of the pact for the country.
Following the announcement of the finalisation of the FTA earlier this month, Indian officials had said that the country reserved the rights to appeal against CBAM taxes, if levied, and discussions on the matter were still on.
While discussions on CBAM is likely to continue between India and the UK, it would happen separately. “It is not part of the FTA and these sort of mechanisms,” the official added.
The FTA, which will need three months of legal scrubbing and a year to be approved by UK Parliament, will lead to tariff elimination for India on about 99 per cent of the tariff lines by the UK. The UK will gain tariff-free access to India for 85 per cent of its tariff lines spread over 10 years.
“We already have £43 billion worth of trade between the two nations, and this deal will actually increase that trade by over £25 billion in the long run, and obviously that will lead to lots of creation of jobs on both sides of the border, and effectively go to enhancing both economies,” the official said.
Tariffs will be slashed for UK exports not only in sectors that made headlines, such as whiskey and cars, but also others such as advanced machineries, medical devices and cosmetics.
Opportunities will be unlocked for India in sectors such as textiles & clothing and footwear, the official added.
Published on May 27, 2025
3D illustrated country flags, designed and rendered in Cinema 4D
| Photo Credit:
themotioncloud
The UK has clarified that the country’s carbon board adjustment mechanism (CBAM) regulation is outside the realm of the free trade agreement (FTA) signed with India and all discussions on the matter between the two countries would happen “outside this space”.
Prime Minister Narendra Modi and his UK counterpart Keir Starmer are expected to meet soon to officially sign the India-UK FTA, which has the potential to increase bilateral trade by over £25 billion annually, an UK official said on Tuesday.
In the area of mobility, the UK has not touched its immigration system at all or created extra visa categories for India, and concessions are largely centred around creation of 1,800 visa slots annually for professionals like chefs, musicians, and yoga instructors, he pointed out.
“The carbon tax is not part of the FTA. So that’s actually got nothing to do with what we’re talking about on this particular FTA. Essentially, that conversation happens outside of this space..,” the official said in an interaction.
The CBAM, to be implemented in January 2027, will place a carbon tax on specified goods in the aluminium, cement, fertilizer, hydrogen, and iron and steel sectors.
India had been negotiating for flexibilities under CBAM as part of the FTA as carbon taxes could nullify the other market access benefits of the pact for the country.
Following the announcement of the finalisation of the FTA earlier this month, Indian officials had said that the country reserved the rights to appeal against CBAM taxes, if levied, and discussions on the matter were still on.
While discussions on CBAM is likely to continue between India and the UK, it would happen separately. “It is not part of the FTA and these sort of mechanisms,” the official added.
The FTA, which will need three months of legal scrubbing and a year to be approved by UK Parliament, will lead to tariff elimination for India on about 99 per cent of the tariff lines by the UK. The UK will gain tariff-free access to India for 85 per cent of its tariff lines spread over 10 years.
“We already have £43 billion worth of trade between the two nations, and this deal will actually increase that trade by over £25 billion in the long run, and obviously that will lead to lots of creation of jobs on both sides of the border, and effectively go to enhancing both economies,” the official said.
Tariffs will be slashed for UK exports not only in sectors that made headlines, such as whiskey and cars, but also others such as advanced machineries, medical devices and cosmetics.
Opportunities will be unlocked for India in sectors such as textiles & clothing and footwear, the official added.
Published on May 27, 2025
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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