New Delhi: In response to moves by developed nations to adopt unilateral trade-restrictive measures such as carbon taxes to combat climate change, a commerce ministry body on Thursday released a booklet arguing that such moves are incompatible with World Trade Organization (WTO) rules and will spark trade wars among countries.
A carbon tax is a tax on the the carbon dioxide emissions from burning fossil fuels.
The body argued that the failure to impose a carbon tax or otherwise internalize the full price of carbon does not currently give other WTO members the right to impose anti-dumping duties on imports.
“There is an attempt to bring in environmental issues such as cap on trade, virtual carbon and carbon leakage to the WTO agenda through backdoor. The present booklet is intended to spark a debate on this issue,” commerce secretary Rahul Khullar said while releasing the booklet.