After a heated battle, there was ultimately no mention of the CBAM in the India UK trade deal inked on 6 May. Initially, India had proposed a “rebalancing mechanism” which would require the UK to compensate Indian industry for losses incurred due to the regulation. It had also sought an exemption from the CBAM. According to Reuters, the CBAM remains an “elephant in the room” that could negate the benefit of the free trade agreement for Indian companies, said Ajay Srivastava, founder of New Delhi-based think tank Global Trade Research Initiative. Talks are reportedly set to continue on how the two countries navigate the CBAM.
