Goyal warns EU over CBAM and import duty
"You put a CBAM (Carbon Border Adjustment Mechanism) on yourself. You put a 50 per cent import duty to bring steel into your country. You're inviting disaster. Your cost of living will go up," he said.
Goyal said the EU was "shooting" itself in the foot by imposing more regulations and restrictions and closing its borders, despite openness having helped its members become developed nations.
He said the battery of regulations was creating an artificial situation and new boundaries within Europe. He criticised what he described as "absolutely ridiculous" standards or levels of protection introduced at times to safeguard sectors such as steel, saying these measures were hurting the EU's economy.
"Now, imagine going forward, every infrastructure, whether it's a port or an airport or your autobahns in Germany or your expressways, your utilities, your water pipelines, you name the infrastructure with costlier steel, costlier aluminium, costlier cement, with all the overlay of CBAM and deforestation rules," he said.
EU regulations could hurt competitiveness, Goyal says
Goyal said the EU had 75-77 regulations. "We've lost count. You keep adding to your regulations, add to the burden of your industry, make yourself uncompetitive. And of course, in some sense, it'll also create non-tariff barriers for others to trade with you," he said.
He cautioned that the world had become reciprocal. "And I don't say that. Much bigger leaders are saying that. And in this reciprocal world, you bring in a regulation and stop some other country from working with you. They'll bring in two regulations, which will hurt your businesses," he said.
Goyal said the measures would ultimately raise the cost of living and inflation in Europe while reducing business competitiveness.
"You will not be able to compete in global markets. Your auto industry is suffering that already. I think auto sales are down from Germany by 15 or 20 per cent in the last decade or so," the minister said, adding, "How will you be competitive in the future? You will ultimately outprice your industry."
India seeks fair and balanced trade agreements
Goyal said India was working to increase its competitiveness and establish win-win partnerships with other countries.
"We've got fair, equitable, and balanced agreements with every one of the partners with whom we are working. At least in the last four or five years, post-2014 particularly, we're forging friendships, basis competitiveness. We are building complementary strengths," he said.
He added that India would trade with countries such as Singapore, where there was no CBAM or deforestation regulation.
India has raised concerns on several occasions over the EU regulations. Under the EU's Carbon Border Adjustment Mechanism, Indian exports of steel, aluminium and cement to the bloc could face tariffs of 20-35 per cent.
The European Union Deforestation Regulation is a non-tariff barrier that imposes strict regulatory requirements on sectors such as rubber production and on exporters seeking access to European markets.
Goyal highlights India's share of global emissions
Goyal said India accounted for only 3-3.5 per cent of global carbon emissions despite supporting about 17 per cent of the world's population. He described the EU's contribution to carbon emissions, at about 20 per cent, as "humongous".
He said developed nations had earlier used low-cost energy to drive growth. India's current contribution to emissions was low, while its per capita damage to the ozone layer or carbon emissions was probably seven to eight times lower than that of Western nations, he added.
Goyal said India had the fastest clean energy programme. "We are greening our steel," he said. He criticised developed nations over unmet climate finance and technology transfer promises and said EU rules ignored differentiated responsibilities, raised costs and created trade barriers.