The European Union’s (EU) Carbon Border Adjustment Mechanism has been met with concern that it is a unilateral and protectionist trade measure. South Africa’s Minister of Trade, Industry and Competition Ebrahim Patel argues that the CBAM is not compliant with the World Trade Organization (WTO) as it has not been ratified by the organisation, and that the mechanism will cost South Africa’s economy R2 billion annually. Patel and the EU trade commissioner Valdis Dombrovskis had sideline discussions on the CBAM at the 13th WTO Ministerial Conference held in February. Dombrovskis has stated that the EU was working with affected countries in the design and implementation of the CBAM, which is currently in a trial period of monitoring and reporting. For Patel, South Africa is not opposed in principle to trade measures as a means to lower carbon emissions, but believe that such measures should be negotiated and managed by the WTO instead of regional blocs and organisations.
