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Commerce and Industry Minister Piyush Goyal has said that the European Union's (EU) deforestation regulation and carbon tax are unfair and would impact Indian industries. He said the EU's safeguard measures on some steel products are irrational too. He noted that Indian industries are confronted with unfair rules of deforestation, rules around CBAM (Carbon Border Adjustment Mechanism) and various other measures. Major agriculture-exporting countries, including Brazil, India, Indonesia and the US, have raised objections to the EU Deforestation Regulation (EUDR).

Goyal said the EUDR was adopted on May 16, 2023, and seeks to prevent the import of specified goods contributing to deforestation and forest degradation in the EU market. The covered products include coffee, leather, oil cake, wood furniture, paper, and paperboard, with plans to expand the product list further. However, the regulation has faced significant backlash from several major trading partners. He said the developed world is taking such measures by ‘disrespecting’ the multilateral agreements on climate change. He added that in the Paris Agreement it was decided that the developed world -- which in the first place is responsible for the environmental problems of the world -- will contribute to the low-cost, long-term financing and will also provide grants and technology. But, COP 21 (Paris Climate Conference) premise is sought to be demolished by the EU.

The minister stated that on the issue of imposing safeguard duty measures, which are irrational duties and totally against the MFN (most favoured nation) laws of WTO (World Trade Organization) on certain steel products, India is discussing the matter for the last 5-6 years now. He said ‘I have been holding back, I have been negotiating and requesting ...India does not have unfair trade practices, now should we be subject to that additional duty? Now after six years, we have to take other measures.’ He also said ‘those measures are not going to be conducive for the kind of good relations that we believe Europe and India share and should continue to share at the business level’. Such issues and others like labour matters can best be addressed through bilateral discussions.