New Delhi, Jan. 28 -- Under the proposed India-EU trade agreement, which intends a phased reduction of tariffs on 96 percent of exports from both sides, the European Union has chosen to tread cautiously on the Carbon Border Adjustment Mechanism (CBAM), keeping the issue outside the scope of the treaty.

While CBAM, seen by India as a levy on imports of high carbon goods such as steel and cement, has been a contentious point, the Free Trade Agreement (FTA) includes provisions for rebalancing rights if EU measures adversely impact Indian exporters, an official told The Times Of India.

Indian trade negotiators have successfully sealed the 'forward most favourable nation' clause on CBAM, along with US.The EU has also assured India that it wi...