India, Nov. 3 -- With the India-European Union (EU) free trade agreement (FTA) talks sprinting to the finishing line, we may see a drop in the EU's already low tariff rates. After the recent meeting India-EU bilateral meeting, the Indian Government has indicated that EU's regulation on Carbon Border Adjustment Measures (CBAM) and other regulations require further discussion, as these issues have higher sensitivities. The real test of the FTA will be its ability to address the CBAM and EU's other complex regulations that increase the costs of any effective market access. While purporting to be in the interest of the environment, these EU measures are effectively aimed at keeping the cost-competitiveness of its domestic industry.

When the ...