Recent global developments have intensified concerns over the stability of international trade. At the 2025 BRICS summit, External Affairs Minister S Jaishankar brought into light the risks of linking trade policies to non-trade issues. He urged for a fair and transparent trade environment that benefits all nations. The summit brought together leaders from Brazil, Russia, China, and South Africa to discuss these pressing concerns amid geopolitical tensions and economic disruptions.
Global Economic Uncertainties
The world faces multiple challenges including the aftermath of the Covid-19 pandemic, conflicts in Ukraine and West Asia, and climate crises. These factors have disrupted trade flows and slowed progress on Sustainable Development Goals (SDGs). The multilateral system is struggling to address these stresses, causing instability in the global order.
Trade and Non-Trade Linkages
Jaishankar criticised the practice of imposing trade penalties based on political or security considerations unrelated to trade itself. He emphasised that such measures complicate transactions and raise barriers, harming global economic cooperation. The BRICS nations were called upon to lead by example in reviewing and improving trade relations among themselves.
BRICS and Market Access
India faces trade deficits with some BRICS partners. The summit stressed the need for expeditious solutions to balance trade flows within the group. Enhancing market access and reducing barriers will strengthen intra-BRICS commerce and contribute to economic resilience.
Resilience and Supply Chain Reforms
The minister underlined the importance of building more resilient and shorter supply chains. Redundancy and reliability are key to protecting economies from shocks. Democratizing manufacturing across regions will encourage regional self-sufficiency and reduce vulnerabilities during crises.
Principles of International Trade
India reiterated its commitment to an international trading system based on openness, fairness, transparency, and non-discrimination. Special and differential treatment for developing countries must be preserved. These principles are vital for ensuring equitable growth and stability in global trade.
Urgency of Conflict Resolution
Ongoing conflicts have worsened food, energy, and fertiliser security, especially in the Global South. Disruptions to shipping and trade threaten livelihoods worldwide. The summit called for diplomatic efforts to end hostilities and achieve durable peace, which is essential for restoring global economic stability.
Multilateralism and Future Outlook
The BRICS leaders brought into light the need to reform multilateral institutions to better address current global challenges. A cooperative approach is necessary to stabilise the international economy and maintain a predictable environment for trade and investment.
Questions for UPSC:
- Point out the impact of geopolitical conflicts on global trade and economic stability with suitable examples.
- Critically analyse the role of BRICS in shaping a multipolar world order and its implications for global governance.
- Underline the importance of resilient supply chains in the context of recent global disruptions and estimate their effect on national economies.
- What are the challenges faced by the multilateral trading system in ensuring fairness and inclusivity? How can reforms in international institutions address these issues?
