'BRICS Can Review Trade Flows Among Member States': EAM Jaishankar Expresses Concern About Current 'Trade Patterns'

External Affairs Minister S Jaishankar on Monday said that BRICS nations can review trade flows among its member states as the world is seeking a stable and predictable environment for trade and investment.

He made the statement while addressing the virtual meeting of BRICS leaders on behalf of Prime Minister Narendra Modi.

"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," he said.

"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 realization will be part of the takeaways from today’s meeting," he added.

His statements come amid tensions in India-US relations following United States' imposition of additional penal tariffs on India for buying Russian oil. Jaishankar had earlier expressed perplexity at the logic behind the decision stating it is China and not India that is the largest purchaser of Russian oil.

‘Multilateral System Is Failing World’

The External Affairs Minister expressed concern over the multilateral system that he thinks is failing the world.

"The state of the world today, Excellencies, 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," EAM Jaishankar said.

"Today, the focus is on stabilizing the international economy and the world order...Furthermore, as we head towards the next UN General Assembly Session, an exchange of views on reforming multilateralism would be appropriate," he added.

In a post on X, Jaishankar wrote, "India’s message was that BRICS should work towards stabilizing the international economy, address the impact of ongoing conflicts on the Global South & proactively support reforming multilateralism."

‘Fair and Transparent Economic Practices’

He emphasised on the need for fair and transparent economic practices that is beneficial to all nations.

"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 democratize 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.

"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 added.

Importance of Diplomacy in Resolution of Conflicts

Jaishankar highlighted the importance of diplomacy in resolution of ongoing conflicts in the world.

"The Global South has experienced a deterioration in its food, energy and fertilizer 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.

Action on Climate Change

The Foreign Minister further stressed on the need for more action around climate change.

"Sadly, both climate action and climate justice are currently slipping in global priorities. We need new thinking and initiatives as well...I commend the International Solar Alliance, the Coalition for Disaster Resilient Infrastructure and the Global Bio-fuels Alliance for your consideration," he said.

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