The European Union's (EU) deforestation regulation and carbon tax are unfair and would impact Indian industries, Commerce and Industry Minister Piyush Goyal said on Friday.
He also said the EU's safeguard measures on some steel products are irrational too.
Addressing industry and representatives of EU here on the launch of Federation of European Business in India (FEBI), he said Indian industries are "confronted with unfair rules of deforestation, rules around CBAM (Carbon Border Adjustment Mechanism) and various other measures".
Major agriculture-exporting countries, including Brazil, India, Indonesia and the US, have raised objections to the EU Deforestation Regulation (EUDR).
The Global Trade Research Initiative (GTRI) said India's exports of products like coffee, leather hides, and paperboard worth USD 1.3 billion annually to the European Union could be impacted due to the regulation.
Similarly, India has raised strong objections against the CBAM, under which EU has proposed to impose additional duty on seven carbon-intensive sectors, including steel, cement, fertiliser, aluminium and hydrocarbon products.
Finance Minister Nirmala Sitharaman too has recently said the CBAM is unilateral and arbitrary and will hurt India's exports after its implementation by EU.
Last month, India proposed the imposition of retaliatory customs duties, under WTO norms, on certain value of goods imported from EU, as the two sides have failed to reach a consensus on the EU's safeguard measures on some steel products.
Goyal said the developed world is taking such measures by "disrespecting" the multilateral agreements on climate change.
He said that in the Paris Agreement it was decided that the developed world -- which in the first place is responsible for the environmental problems of the world -- will contribute to the low-cost, long-term financing and will also provide grants and technology.
But, COP 21 (Paris Climate Conference) premise is sought to be demolished by the EU, he said.
He added that on the issue of imposing safeguard duty measures, which are "irrational duties and totally against the MFN (most favoured nation) laws of WTO (World Trade Organization) on certain steel products", India is discussing the matter for the last 5-6 years now.
"I have been holding back, I have been negotiating and requesting ...India does not have unfair trade practices, now should we be subject to that additional duty? Now after six years, we have to take other measures," Goyal said.
He added that those measures are "not going to be conducive for the kind of good relations that we believe Europe and India share and should continue to share at the business level".
Such issues and others like labour matters can best be addressed through bilateral discussions, the minister said.
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