India seeks UK carbon tax exemption in free trade deal talks

India’s negotiating team have spent this week in London in a surprise set of talks to try to overcome the remaining hurdles to an agreement.

India had raised concerns about the application of a CBAM – a planned tax on the import of carbon-intensive goods such as steel, glass and fertiliser – at an earlier stage in the talks.

The plans are designed to reduce emissions and support UK steel producers by levelling the playing field with countries that have a lower or no carbon levy.

The discussions this week, which involve India’s chief trade negotiator, have been kept under wraps in the UK but made it into the Indian press.

While we don’t comment on the details of live negotiations, there are no plans to change our immigration policy to achieve this free trade agreement.

The business and trade Secretary has always been clear she will only sign a deal that is fair, balanced and ultimately in the best interests of the British people and the economy.”