India's Concerns Over UK's Proposed CBAM

• India has expressed concerns regarding the UK's proposed Carbon Border Adjustment Mechanism (CBAM) as part of its trade relationship. 
• The CBAM, expected to be implemented by January 2027, could potentially undermine the trade benefits from the newly signed Comprehensive Economic and Trade Agreement (CETA) between India and the UK.
• The CETA does not explicitly mention CBAM, as the UK claims it is still in the preparatory phase.
• India has secured a note verbale, allowing it to rebalance trade if CBAM adversely affects Indian exports.

Efforts to Shake off 'Tariff King' Image

• The CETA is seen as an effort by India to move away from its image as a "tariff king," a term used by the former US administration.
• The agreement aims to double bilateral trade from $56 billion to over $100 billion by 2030.
• 99% of Indian exports will enter the UK duty-free, while 90% of British goods will enjoy zero tariffs in India.
• India's applied trade-weighted average tariff on UK imports will decrease from 15% to 3%.

Intellectual Property Chapter Concerns

• There are apprehensions regarding the intellectual property chapter in the trade agreement, particularly concerning compulsory licenses (CLs).
• The agreement does not dilute India's authority to issue CLs, a critical tool for accessing life-saving technologies.
• References to voluntary licensing acknowledge global best practices without limiting India's rights under the Indian Patents Act, 1970.