Jaishankar Flags Trade Barriers: 'Some Of Our Biggest Deficits Are With BRICS Partners'
"Trade patterns and market access are today prominent issues in the global economic discourse," Jaishankar said, during his virtual address at the BRICS summit.
Some of India's biggest trade deficits are with BRICS members, External Affairs Minister S Jaishankar said, while virtually addressing the leaders' summit of the grouping on Monday.
Jaishankar addressed the summit in place of Prime Minister Narendra Modi. In his comments, the minister flagged concern over the increasing trade barriers.
"Trade patterns and market access are today prominent issues in the global economic discourse. The world requires constructive and cooperative approaches to promote trade that is sustainable," Jaishankar said.
"Increasing barriers and complicating transactions will not help. Neither would the linking of trade measures to non-trade matters. The BRICS itself can set an example by reviewing trade flows among its member states. Where India is concerned, some of our biggest deficits are with BRICS partners and we have been pressing for expeditious solutions. We hope that this realisation will be part of the takeaways from today’s meeting," he added.
Notably, India's sharpest trade deficit is with China, standing at $99.21 billion in fiscal 2024-25, as per official data. The two countries are the leading economies of the BRICS bloc.
Chinese President Xi Jinping, who spoke at the BRICS summit before Jaishankar, took an apparent aim at the United States, saying that a "certain country" wants to hit the world economy with a "trade war".
The Chinese premier also called upon increasing trade and deepening economic cooperation among the BRICS members, while "resisting all forms of protectionism" and defending multilateralism.
Stable Environment For Trade
The world, including the Global South, needs a stable environment for trade and investment, Jaishankar pointed out. That means creating more resilient, reliable, redundant and shorter supply chains, he stressed.
"It is also essential that we democratise manufacturing and production and encourage their growth in different geographies. Progress in that regard will contribute to regional self-sufficiency and relieve anxieties at times of uncertainty," he underlined at the summit.
Jaishankar reiterated India's support the international trading system, which is based on open, fair, transparent, non-discriminatory, inclusive, equitable and a rules-based approach with Special and Differential Treatment for developing countries. "India strongly believes that this should be protected and nurtured," he said.
The minister's comments come in the backdrop of India being hit with massive import tariffs by the United States. The goods supplied by the country to the US are being subjected to 25% so-reciprocal levies, along with an additional 25% tariff to "penalise" India for its purchase of Russian crude. This takes the cumulative tariff to 50%, which is at par with Brazil and highest among most of the US' trading partners.
Multilateral System 'Failing'
Jaishankar, in his address at the BRICS meet, said the multilateral system "appears to be failing" the world. "That so many serious stresses are being left unaddressed is understandably having consequences for the global order itself. It is this cumulative concern that the BRICS is now discussing."
The Global South is facing a deterioration in its food, energy and fertiliser security, as ongoing major conflicts around the world remain unresolved, the minister pointed out.
"Where shipping is targeted, not just trade but livelihoods also suffer. A selective protection cannot be a global answer. An early end to the hostilities and undertaking diplomacy to ensure a durable solution is the obvious pathway before us," he said.
The working of international organisations in the last few years has witnessed "major shortfalls" in many areas, according to Jaishankar. On key issues, it was seen that "gridlocks have undermined the search for common ground", he said, adding that these experiences have only made the case for "reformed multilateralism generally", and that of the United Nations and its Security Council "specifically, more urgent".
The BRICS has taken a positive view of this need for reform and India expects that it would collectively become a "strong voice for much awaited change", he further said.
