NEW DELHI: Brics slammed the unilateral sanctions and tariff and non-tariff measures initiated by countries, arguing that they distorted trade and were inconsistent with global trade rules – a statement that was seen to be aimed at US, which under Donald Trump has resorted to raising import duties.While Trump’s tariff actions, including the reciprocal tariffs invoking emergency powers, which were declared illegal by the US Supreme Court, are not in line with the WTO regime, few countries have so far raised a dispute. In any case, WTO dispute settlement mechanism is defunct as US has blocked all appointments, and Brics called for its restoration.The New Delhi Declaration is among the most vocal denouncement of Trump’s go-to instrument to get countries to the negotiating table. Even now, US has put in place 10-12.5% tariff on over 50 nations using section 301 powers.Similarly, the concern over “unilateral sanctions and secondary sanctions” came amid US threat to target countries that bought oil from countries such as Russia, Iran or Venezuela, until recently. India had to deal with 50% additional American tariff, including 25% “secondary tariffs” for purchasing Russian crude.Tariffs and sanctions were two issues on which all member nations openly hit out at the western bloc. Besides, the bloc, which accounts for a quarter of global trade, also hit out at protectionism due to environmental concerns, something that the European Union has chosen to do.“The proliferation of trade-restrictive actions that are inconsistent with WTO rules, whether in the form of indiscriminate raising 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,” the declaration said.
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It also backed further discussions to facilitate “practical solutions” for cross-border payments among Brics countries, “which are fast, low-cost, more accessible, efficient, transparent, and safe”.The declaration has backed a reform of World Bank and IMF, while supporting India’s demand for agriculture negotiations at WTO that is “development oriented”.