New Delhi: India, along with several other countries, has reserved its third-party rights to participate in proceedings related to a trade dispute filed by Russia against the European Union over its Carbon Border Adjustment Mechanism, as the WTO's Dispute Settlement Body has agreed to establish a panel to adjudicate on the issue, an official said.
Argentina, Brazil, Canada, China, Chinese Taipei, Indonesia, Japan, Saudi Arabia, South Korea, Malaysia, Norway, Paraguay, Singapore, Switzerland, Thailand, the UK and the US are other countries that have reserved their third-party rights in the dispute, the Geneva-based official said.
Russia has filed a dispute against the EU's Carbon Border Adjustment Mechanism (CBAM) Package and alleged export subsidy under the EU scheme for trading greenhouse gas emission allowances.
The WTO dispute settlement body, at its meeting in Geneva on Friday, agreed to set up a panel to adjudicate the matter, the official said.
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Another official said that becoming a third party in the case will help India follow the proceedings in the dispute.
"This is a constructive step for India as it will allow the country to see what is happening in the dispute. It can see the EU's as well as Russia's stand on the matter," the official added.
Third-party status would enable India to present its views on the WTO issues raised by Russia without becoming a principal party to the dispute.
The case is important for India because exporters of carbon-intensive products such as steel and aluminium face additional compliance requirements, such as carbon-cost requirements and carbon taxes, under the EU's CBAM regime.
