Mahatma Gandhi's observation that the world has enough for everyone's needs but not greed is often quoted in the context of our climate crisis. But no less relevant is his advice that we must not judge others by their worst actions and ourselves by our best principles. Balance matters. With the EU's Carbon Border Adjustment Mechanism (CBAM) effective from October 1, India's exports of carbon-intensive products to Europe — especially aluminum and iron and steel — have been burdened with green reporting rules, the bureaucracy of which is so thick to fill in the data fields that itself looks like a trade barrier. More than $8 billion in annual supplies are already subject to this restriction, but could be hit harder in three years if the CBAM carbon tax is imposed. This EU measure appears likely to harm our economic interests, which explains why the government could protest it as an unfair tariff at the World Trade Organization (WTO), whose dispute settlement body the G20 recently agreed to revive. But while anything that disrupts trade flows must be properly scrutinized, we must take Gandhi's example and also consider the principles cited by the EU. It will give us a realistic view of future trade dynamics and help exporters hedge against the risk of green barriers. (Livemint)