'Increasing trade barriers won't help': Jaishankar at BRICS summit amid US tariff tensions

External Affairs Minister S Jaishankar, representing Prime Minister Narendra Modi at the BRICS virtual summit on Monday, warned that trade restrictions and politicisation of economic policy would harm global growth rather than help it. 

"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," Jaishankar said.

Speaking at the summit, which was also attended virtually by China's Xi Jinping, Russia's Vladimir Putin and Brazil's Luiz Inacio Lula da Silva, Jaishankar stressed that BRICS should lead by example. "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.

He said India's position remained firmly rooted in the core values of a rules-based system. "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."

Jaishankar opened his remarks by noting the challenges facing the world. "It is my privilege to represent Prime Minister Narendra Modi at this virtual meeting of BRICS Leaders. I convey his greetings to all of you. 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."

He emphasised that BRICS members, despite their diversity, were deeply affected by these disruptions. "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."

The minister highlighted the need for stronger and fairer supply chains. "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, the foreign minister added, 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."

His remarks came against the backdrop of escalating friction between New Delhi and Washington after U.S. President Donald Trump doubled tariffs on Indian imports of Russian oil. Modi's absence from the summit and decision to send Jaishankar instead was widely read as a signal of caution in balancing ties with the U.S. while keeping BRICS commitments.