In a veiled reference to the United States' decision to impose an additional 25 per cent tariff on India for purchasing Russian oil, External Affairs Minister S Jaishankar on Monday voiced concern about the “linking of trade measures to non-trade matters”. He called for a “stable and predictable environment for trade and investment” and stressed that economic practices should be “fair, transparent and to everyone’s benefit”.

“The state of the world today is a cause for genuine concern. The last few years have witnessed the devastating impact of the Covid pandemic, major conflicts in Ukraine and the Middle East/ West Asia, volatility in trade and investment flows, extreme climate events and a discernible slowing down of the SDG Agenda. In the face of these challenges, 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,” he said while addressing the BRICS leaders’ summit online.

“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. 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,” he said.

The summit was hosted by Brazil’s President Luiz Inacio Lula da Silva following the tariffs imposed by the United States administration led by President Donald Trump. Jaishankar represented Prime Minister Narendra Modi at the meeting, which also included Chinese President Xi Jinping, Russian President Vladimir Putin and other leaders of the grouping.

The United States has imposed 50 per cent tariffs on both India and Brazil. Jaishankar’s participation at the summit in place of Modi is seen as part of India’s cautious balancing act with Washington.

“The members of BRICS represent a broad diversity of societies who are nevertheless deeply affected by these developments. Even in the past, our endeavour has been to find common ground between our respective national policies and to act on that basis. Today, the focus is on stabilising the international economy and the world order. But it is equally essential that we turn our attention to ongoing conflicts, not least because they have direct developmental and supply chain implications. Furthermore, as we head towards the next UN General Assembly Session, an exchange of views on reforming multilateralism would be appropriate,” Jaishankar said.

This carries significance as India has long expressed concerns about China’s approach towards a multipolar Asia. “The world as a collective is seeking a stable and predictable environment for trade and investment. At the same time, it is imperative that economic practices are fair, transparent and to everyone’s benefit. When there are multiple disruptions, our objective should be to proof it against such shocks. That means creating more resilient, reliable, redundant and shorter supply chains. Not just that, 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 said.

He emphasised that trade patterns and market access remain central to the global economy. “The international trading system is based on the foundational principles of 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.

He also underlined the need for a swift resolution of ongoing conflicts. “The Global South has experienced a deterioration in its food, energy and fertiliser security. 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.