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TWN
Info Service on Trade and Climate Change
Geneva, 14 Sep (D. Ravi Kanth) -- The two-day leaders’ meeting of the 21-member BRICS coalition of developing countries that concluded in New Delhi, India on 13 September has raised sharp concerns over “indiscriminate tariffs” and “unilateral tariff and non-tariff measures”, in an apparent criticism of the tariff and trade policy measures adopted by the United States, said people familiar with the BRICS New Delhi Declaration. In the Declaration adopted at the conclusion of the XVIII BRICS Summit (12-13 September), the BRICS leaders supported reform of the World Trade Organization (WTO) by “upholding the foundational principles, such as Most-Favoured-Nation Treatment and Special and Differential Treatment for developing members, particularly LDCs.” In issuing the 140-paragraph “New Delhi Declaration: Building for Resilience, Innovation, Cooperation and Sustainability,” the enlarged BRICS membership addressed global trade, climate change, supply chains, and the fragile security situation in the Middle East. The leaders of the BRICS coalition - Brazil, Russian Federation, India, China, South Africa, Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia, United Arab Emirates, Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Nigeria, Thailand, Uganda, Uzbekistan, and Vietnam - raised concerns over the sustained attempts to undermine the multilateral trading system through unilateral tariff and trade measures adopted by the United States and other industrialized countries. WTO Director-General Ms Ngozi Okonjo-Iweala attended the summit, though it remains unclear what she said at the meeting. Paragraphs 20, 21, and 22 of the New Delhi Declaration address trade measures, including the unprecedented rise in unilateral tariffs, WTO reforms that seek to undermine the foundational principles, and immediate restoration of the Appellate Body. The BRICS leaders reaffirmed their “unwavering support for reform of the World Trade Organization (WTO) and to strengthening a non-discriminatory, open, equitable, transparent, fair, inclusive, predictable and rules- based multilateral trading system, with the WTO at its core.” But the US has seemingly brought the WTO and the multilateral trading system to their proverbial knees by imposing discriminatory tariffs on Canada, Brazil, and several other countries. Given the emphasis by the US, the European Union, and a small group of “Friends of the System” - who seek to change the foundational principles - the Declaration explicitly upholds “the foundational principles, such as Most-Favoured-Nation [MFN] Treatment and Special and Differential Treatment [S&DT] for developing members, particularly LDCs.” In the ongoing WTO reform discussions, the US and the EU, along with other industrialized countries, have sought to substantially change MFN and S&DT, as reported in the SUNS. While committing to engage “in multilateral negotiations in Geneva, especially in the debates regarding the reform of the WTO,” the Declaration states that BRICS members “will advance efforts and enhance coordination under the BRICS Informal Consultative Framework on the challenges undermining the effectiveness and credibility of the WTO and solutions to these challenges.” Even though trade ministers failed to reach consensus at the WTO’s 14th ministerial conference (MC14) earlier this year, the New Delhi Declaration states, somewhat paradoxically, that BRICS members “will ensure the implementation of the MC14 outcomes and continue to engage constructively towards the resolution of outstanding issues.” They vowed to “engage constructively in the WTO reform to enhance the WTO’s authority, effectiveness, inclusiveness, and relevance, and build an open world economy.” Plurilateral pathways On the controversial plurilateral pathways pushed by the US and many other countries, including China, the New Delhi Declaration states that it “recognize (s) that it is important to identify appropriate pathways for plurilateral initiatives into the WTO legal framework including on development-oriented issues, and to explore the formulation of forward-looking rules in the WTO.” A trade official, speaking anonymously, said it remains rather ambiguous in relating plurilateral pathways to “development-oriented issues.” Restoration of Appellate Body With reform of the dispute settlement system reportedly scuttled by the major industrialized countries, including the US, the Declaration advocates “for the immediate restoration of an accessible, effective, fully functioning, two-tier binding WTO dispute settlement mechanism as a foundation for trust and predictability for all WTO members.” It calls for the immediate “appointment of new Appellate Body members without further delay.” Credibility of MTS BRICS members said that they “look forward to working towards strengthening the organization through the necessary reform while upholding the foundational principles of the WTO and facilitating the negotiation process within the WTO framework, and to restoring the credibility of the multilateral trading system [MTS].” On the much-delayed accession of Iran and Ethiopia to the WTO, the Declaration states: “Echoing the aspirations of the Global South to fully integrate into the multilateral trading system, we strongly support Ethiopia and Iran’s bid for accession to the WTO.” It acknowledged China “for expanding its zero-tariff treatment to cover 53 African countries with which it has diplomatic ties.” Noting that “the multilateral trading system has long been at a crossroads,” the New Delhi Declaration warns that “the proliferation of trade-restrictive actions that are inconsistent with WTO rules, whether in the form of indiscriminate rising of tariffs and non-tariff measures, or protectionism under the guise of environmental objectives, threatens to further reduce global trade, disrupt global supply chains, and introduce uncertainty into international economic and trade activities, potentially exacerbating existing economic disparities and negatively affecting prospects for global economic development.” Unilateral tariffs Without naming the US, which has imposed unilateral tariffs since April last year, the Declaration voiced “serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO rules.” The BRICS leaders said they “will work together to enhance the WTO’s responsiveness to trade disruptions and the needs and priorities of emerging markets and developing economies (EMDEs), as well as advance discussions on outstanding issues, and support balanced, inclusive and concrete outcomes that strengthen the multilateral trading system and enable it to better address evolving global challenges.” Unilateral coercive measures In paragraph 22, without naming the US, which has imposed economic sanctions on countries trading with Iran, the New Delhi Declaration states: “We condemn the imposition of unilateral coercive measures that are contrary to international law, and reiterate that such measures, inter alia in the form of unilateral economic sanctions and secondary sanctions, have far-reaching negative implications for the human rights, including the rights to development, health and food security, of the general population of targeted states, disproportionally affecting the poor and people in vulnerable situations, deepening the digital divide and exacerbating environmental challenges.” The Declaration calls for “the elimination of such unlawful measures, which undermine international law and the principles and purposes of the UN Charter.” It reaffirmed BRICS members’ “opposition to unilateral coercive measures that are contrary to international law and the Charter of the United Nations, including non-UN Security Council authorized sanctions.” Climate change In paragraph 24, BRICS leaders expressed “concern about ongoing conflicts in many parts of the world and the current state of polarization and fragmentation in the international order.” Concerned over shrinking financing for development to developing countries, they advocated “for a multilateral approach that respects diverse national viewpoints and positions on crucial global issues, including sustainable development, the eradication of hunger and poverty and contributing to the global response to climate change, while expressing deep concern over attempts to link security with the climate change agenda.” BRICS leaders reaffirmed their commitment “to BRICS cooperation to improve national disaster risk reduction systems and capacities to reduce disaster-related damage and protect infrastructure, human lives and livelihoods; to share traditional, indigenous, local knowledge and community-based approaches, to ensure preparedness and self-reliance; as well as to mobilize adequate, predictable and accessible financing, including public and private investment, for comprehensive infrastructure development.” In paragraph 96, the leaders recognized “the disproportionate burden imposed by climate change across countries, with EMDEs facing particular challenges in addressing climate-related risks and vulnerabilities, as well as the substantial gaps in funding needs, particularly for adaptation measures.” In this context, they welcomed “the report on the “Role of Central Banks Towards Optimising Sustainable and Green Finance, including Adaptation”, which examines central bank measures and sustainable finance trends, including efforts to explore the possibility of making climate finance projects more bankable, globally as well as within BRICS countries.” The Declaration highlighted the “potential of the BRICS Climate Research Platform and the BRICS Laboratory for Trade, Climate Change and Sustainable Development for promoting climate action and building resilience in the BRICS Member Countries and we look forward to their further development.” Recalling the “2025 Leaders’ Framework Declaration on Climate Finance”, the BRICS members said that they “support promoting cooperation in the field of carbon markets, with a specific focus on capacity building and exchange of experiences and look forward to the implementation of the Memorandum of Understanding on the BRICS Carbon Markets Partnership as a cooperative approach to support members in their climate strategies, including in complementing mitigation efforts and mobilizing needed resources.” People-centric approaches The Declaration encouraged "enhanced cooperation among BRICS countries on people-centric and community- based adaptation as an important pathway to strengthening climate resilience and sustainable development.” “Developed countries shall provide additional, adequate, predictable, accessible financial resources, capacity building support, technology development and transfer to developing countries for adaptation.” It recognized “the value of traditional knowledge systems, indigenous and local communities’ practices, local innovations, and community experiences in enhancing adaptive capacity and addressing climate challenges, and encourage the exchange of experiences, knowledge, and best practices, including on the integration of traditional knowledge with scientific knowledge and technological innovation.” BRICS leaders welcomed “the BRICS Principles for Advancing Climate Resilience through People-Centric and Community-based Adaptation based on Traditional Knowledge.” They underscored “the importance of nationally determined just transitions and balanced mitigation and adaptation actions,” while highlighting “the importance of all available and accessible solutions and technologies that contribute to emission reduction and enhance adaptive capacity, including the critical role of ecosystems as carbon stocks and sinks, providers of ecosystem services, and contributors to climate resilience.” The Declaration called for "greater and more meaningful participation and representation of EMDEs, as well as Least Developed Countries (LDCs), especially from Africa, Asia and Latin America and the Caribbean, in global decision-making processes." The BRICS leaders highlighted the importance of the Global South as "a driver for positive change" and committed to promoting "a more just, sustainable, inclusive, representative and stable international order based on international law." +
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