India Joins WTO Carbon Dispute while DGFT Tightens Scrap Inspection Regulations

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India has officially reserved its third-party rights at the World Trade Organization (WTO) in the trade dispute initiated by Russia against the European Union’s Carbon Border Adjustment Mechanism (CBAM). This procedural move enables India to closely monitor and present its position regarding carbon-intensive export regulations without becoming a primary litigant. Addressing trade regulatory standards, the Directorate General of Foreign Trade (DGFT) delisted 15 pre-shipment inspection agencies (PSIAs) for procedural lapses and failure to perform due diligence during metal scrap certifications, causing temporary clearance bottlenecks for recycling firms at major ports like Mundra. In response to evolving market conditions, Indian MSMEs are being urged to upgrade their compliance infrastructure regarding EU environmental, social, and governance (ESG) standards, deforestation rules, and labor norms to maximize benefits from the upcoming India-EU Free Trade Agreement scheduled for early 2027. Additionally, to boost container traffic and assist Exim logistics, the V.O. Chidambaranar Port Authority (VOCPA) announced a 10-day free storage provision and allocated 40,000 sq-m of dedicated stacking space for mainline vessel services.

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