India looks to build consensus at WTO to block non-trade issues

India is pushing for forging consensus with like-minded countries at the World Trade Organization (WTO) to prevent entry of non-trade issues such as environment and sustainability into the trade negotiations.

"Brazil, China, Thailand and South Africa are some of the countries which could get affected and we will try to build a consensus with them," said a government official, who did not wish to be identified.

The move by advanced economies to impose green taxes has already made the developing and emerging economies wary of such moves.


The US recently approved the Inflation Reduction Act to establish green technology industries and the European Union has unveiled the Carbon Border Adjustment Mechanism, under which tax is levied on certain imports into the region. It also has a law for deforestation-free products.

"These developments are not good as there is a growing tendency among developed countries to bring non-trade issues. We need to deliberate on this collectively at the upcoming ministerial meeting," said another official.

India fears that there may be a renewed push for bringing environment and sustainability into trade negotiations by the developed countries at the ministerial level, especially in the backdrop of these measures.

The 13th ministerial conference (MC13) of the WTO is scheduled early next year.

In February, India submitted at the WTO that carbon border measures are being selectively applied to "trade-exposed industries" such as steel, aluminium, chemicals, plastics, polymers, chemicals and fertilisers, reflecting the underlying competitiveness concerns driving such measures.

India said WTO rules mandate non-discriminatory treatment for products, irrespective of their production methods and discriminatory measures in the form of border measures can lead to "behind- the-border" protectionist practices.