BRICS Finance Ministers express “serious concerns” about raising tariffs, non-tariff measures

Rio de Janeiro: The Finance Ministers and Central Bank Governors (FMCBG) of the BRICS nations have voiced “serious concerns” about the unilateral imposition of tariffs and non-tariff measures, which they deem inconsistent with World Trade Organisation (WTO) rules.

In a joint statement following their first meeting under Brazil’s chairmanship on Saturday, the group emphasised the resilience of the BRICS nations–Brazil, Russia, India, China, and South Africa–along with new members in the face of these challenges and pledged to safeguard a non-discriminatory, open, fair, inclusive, equitable, and rules-based multilateral trading system with the WTO at its core, underscoring a collective commitment to global economic stability.

“The global economy and financial markets have increasingly been subject to elevated uncertainty and bouts of intense volatility. We voiced our serious concerns with the unilateral imposition of trade- and finance-related actions, including the raising of tariffs and non-tariff measures, which distort trade and are inconsistent with World Trade Organisation (WTO) rules,” the statement read.

“In this testing environment, BRICS members have demonstrated resilience and will continue to cooperate among themselves and with other countries to avoid trade wars that could plunge the global economy into recession or further prolong subdued growth,” it added.
The statement comes amidst a challenging global economic context marked by heightened uncertainty and volatility, as the deadline date of the 90-day pause on tariff escalations announced by US President Donald Trump approaches, after this initial announcement of these punitive measures on April 2. The deadline date is set to be on July 9.

Under current inflationary conditions, the ministers reaffirmed their dedication to central banks’ price stability mandates, confident that responsible monetary policies benefit all stakeholders. “Collectively, we will continue to pursue constructive and active engagement in international financial institutions and a rules-based multilateral trading system to meet the needs of developing countries and advance intra-BRICS cooperation to further the development and resilience of our economies,” they stated.

The statement also addressed the need to de-escalate trade tensions, promote balanced global growth, and foster inclusive economic globalisation.

“We will cooperate to facilitate the de-escalation of trade tensions, including by reinforcing solidarity and promoting strong, sustainable, and more balanced global growth, fostering a universally beneficial and inclusive economic globalisation,” it noted.
Additionally, the BRICS nations committed to enhancing coordination between debtors and creditors to address debt issues in Emerging Markets and Developing Economies (EMDEs) from a development perspective, ensuring fair and constructive solutions.

Meanwhile, Prime Minister Narendra Modi is currently on his four-day visit to Brazil, during which he will participate in the 17th BRICS Summit and undertake a State Visit.

During the 17th BRICS Leaders’ Summit from July 6 to July 7, PM Modi will exchange views on key global issues, including peace and security, strengthening multilateralism, responsible use of artificial intelligence, climate action, global health, and economic and financial matters.

According to the official statement, the Prime Minister is also likely to hold several bilateral meetings on the sidelines of the Summit.