Sustainability and security measures are adding to regulatory and economic uncertainties according to a GOI official.
L Satya Srinivas, Additional Secretary, Department of Commerce, GOI, discussed the regulatory and economic uncertainties arising from trade-related sustainability measures, particularly in energy and critical minerals. He was speaking at the recently concluded At the CII Partnership Summit 2024.
“Whether it is about the environment, inclusivity, gender, or labor—all trade-related sustainability measures are also bringing in both regulatory and economic uncertainty… Energy is a critical element towards the transition to the future. How do we deal with provisions related to energy, critical minerals… to ensure that our supply chains remain intact in the future?” Mr Srinivas said.
He also touched upon the European Union’s carbon border adjustment mechanism (CBAM) and other comparable measures. It must be noted that The EU, which has implemented some of these rules, is among the nations with which India is negotiating free trade agreements (FTAs).
“I am sure everyone has been debating how we deal with CBAM, how we deal with new regulations coming in Europe, such as EU deforestation laws, or new legislation emerging across the globe, in terms of protectionist elements, domestic legislations that incentivise industries to invest and ensure they have an impact on trade. There are also laws to ensure that there is no transfer of technology,” Mr Srinivas said.
He emphasized the need for investment in skilled personnel and a free flow of skilled personnel across the globe. He also highlighted the potential impact of AI on trade, stating that these new regulations will dictate the future trajectory of trade.
