Goyal Flags EU Regulatory Burden, Netherlands Rules Out CBAM Renegotiation

Commerce and Industry Minister Piyush Goyal on Monday criticised the European Union’s growing regulatory burden on businesses, while Dutch Trade Minister Sjoerd Sjoerdsma defended the bloc’s Carbon Border Adjustment Mechanism (CBAM), calling it necessary to meet global climate commitments.

Speaking at the India-Netherlands Business Forum here, Goyal said India was reducing compliance requirements and simplifying procedures to improve the ease of doing business. He cited two Jan Vishwas laws, which decriminalised or eased penalties for several minor offences, and the removal of around 40,000 compliance burdens.

“The world wants more freedom,” Goyal said, stressing that businesses sought simpler processes, less paperwork and fewer regulatory hurdles. He also criticised excessive regulations imposed by the European Commission and authorities in individual European countries. India has repeatedly raised concerns over EU regulations, including CBAM and rules on deforestation, arguing that they could increase costs for exporters.

However, Sjoerdsma ruled out renegotiating CBAM, describing it as essential to ensuring countries meet the objectives of the Paris Climate Agreement. The mechanism imposes a carbon cost on imports of certain carbon-intensive products, including iron and steel, aluminium, cement, fertilisers, electricity and hydrogen.

Acknowledging the complexity of the rules, Sjoerdsma said the Netherlands was helping small and medium enterprises in India and other partner countries understand the requirements and comply with them. He said regulations protecting consumers, product quality, safety and climate objectives remained important, while unnecessary rules that hinder trade should be reviewed.

Goyal is on a six-day visit to Germany and the Netherlands from October 22 to 27, leading a 100-member business delegation to explore opportunities for trade and investment.

His visit follows the announcement of the India-EU free trade agreement in January 2026. The pact is expected to be signed in January 2027 and implemented in March-April. India’s exports to the EU declined 4.57 per cent to USD 72.4 billion in 2025-26, while imports rose nine per cent to USD 66.18 billion, leaving India with a trade surplus.