Prelims: Current events of national and international importance | International Relations
Why in News?
Recently, the Russia has initiated a WTO dispute with the European Union regarding its Carbon Border Adjustment Mechanism (CBAM).
Russia’s WTO Challenge
- Russia has raised concerns regarding the following issues:
- The EU's Carbon Border Adjustment Mechanism (CBAM) package.
- An alleged export subsidy within the EU's greenhouse gas emission allowance trading scheme.
- The WTO Dispute Settlement Body has agreed to establish a panel to review this dispute.
The Carbon Border Adjustment Mechanism (CBAM) is a policy introduced by the European Union to address carbon emissions associated with specific imported goods.
India’s Third-Party Status
Third-party participation refers to the involvement of a country that is neither the main complainant nor the respondent in a dispute.
- In this context, India is not directly involved as either the complainant or the respondent.
- India may observe the proceedings.
- India may also present its views on the WTO issues raised in the dispute.
- It enables India to understand both Russia’s and the EU’s positions.
- Countries Reserving Third-Party Rights – Argentina, Brazil, Canada, China, Chinese Taipei, Indonesia, Japan, Saudi Arabia, South Korea, Malaysia, Norway, Paraguay, Singapore, Switzerland, Thailand, UK and USA.
- Significance for India – Exporters of carbon-intensive products, especially those listed below, may be affected.
- These exporters may encounter the following challenges:
- Additional compliance requirements
- Carbon-related costs and charges
- Requirements related to greenhouse gas emissions
Reference
BS | India’s Third-Party Status
