Luxembourg City, June 12 -- In a move that signals a significant shift in global trade dynamics, the Council of the European Union on Friday moved to strengthen the Carbon Border Adjustment Mechanism (CBAM), expanding its reach to more products and introducing strict anti-circumvention measures.

The decision was reached during the Economic and Financial Affairs Council (ECOFIN) meeting in Luxembourg and is expected to have far-reaching consequences for India's export sectors, particularly steel and aluminium.

The finance ministers of the EU countries agreed on a "general approach" to update the CBAM regulation, which has been in operation from January 1, 2026. The new measures aim to close loopholes and ensure that the EU's climate goal...