Navigating Trade Barriers: India's Strategy Against EU's Anti-Deforestation Regulation
A recent parliamentary panel report has highlighted the European Union's anti-deforestation regulation as a non-tariff barrier, urging India to address this within the World Trade Organization. The report calls for fast-tracking compliance mechanisms, assessing Free Trade Agreements, and bolstering export strategies for sectors like rubber, spices, and leather. Recommendations include leveraging existing trade agreements, negotiating new ones, and providing financial support to enhance India's global trade presence.
- Country:
- India
A parliamentary panel report has identified the European Union's anti-deforestation regulation as a non-tariff barrier, urging the Indian government to raise the issue at the World Trade Organization and other trade forums.
The report highlights the urgent need to develop compliance mechanisms under the regulation, particularly for the Indian growers, and emphasizes fast-tracking these processes to meet the 2026 deadline. It raises concerns about the impact of Free Trade Agreements (FTAs) on India's spice trade and insists on protecting Indian farmers' interests while exploring new markets.
For the leather industry, the report recommends leveraging FTAs with major markets like the EU and the US, as well as existing agreements with countries like Japan and Australia, to boost India's exports. It suggests offering financial support to address funding gaps and reduce dependence on imports for machinery, encouraging local assembly through strategic imports.
(With inputs from agencies.)
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