The text of the just-concluded Free Trade Agreement (FTA) with the UK is silent on whether the duty reliefs – zero tariff for 99% of product lines – for India will be stymied by the carbon tax to be introduced by London from 2027. Though the FTA has no escape clause on the UK’s Carbon Border Adjustment Mechanism (CBAM), officials say India has reserved its right to retaliate to any additional tax that is imposed. The UK CBAM will place a carbon price on some of the most emission-intensive industrial goods imported into the UK like aluminium, cement, ceramics, fertiliser, glass, hydrogen and iron and steel sectors.