Jaishankar at BRICS: Trade, Tariffs, and the Quest for Fair Multilateralism

Why in the News?

1. External Affairs Minister S. Jaishankar raised concerns at the BRICS Summit (convened by Brazil) over the U.S. decision to impose a 25% additional tariff on India for purchasing Russian oil.
2. He cautioned against linking trade measures to non-trade matters, emphasizing the need for a stable, predictable, fair, and transparent global trading system.
3. His participation, instead of Prime Minister Modi, highlights India’s balancing act between BRICS partners and the U.S. amidst shifting geopolitics.

Key Highlights

1. S. Tariff Decision and India’s Response
   1. The U.S. administration imposed 50% tariffs on both India and Brazil as penalty measures.
   2. Jaishankar warned against the politicisation of trade, linking it to strategic or geopolitical issues.
   3. India seeks a rules-based global trading system that ensures equity and inclusivity.
2. Concerns about the Global Order
   1. Jaishankar highlighted recent global crises:
      1. Covid-19 pandemic.
      2. Conflicts in Ukraine and West Asia/Middle East.

• Volatility in trade, investments, and extreme climate events.

1. Stalling of the Sustainable Development Goals (SDG) Agenda.

1. These challenges expose the failure of the multilateral system to deliver collective solutions.

3. Role of BRICS in Trade and Economy
   1. BRICS represents diverse societies with shared vulnerabilities.
   2. India has significant trade deficits with BRICS partners, demanding corrective action.
   3. Jaishankar urged BRICS to review internal trade flows and build resilience against global shocks.
4. Supply Chain and Manufacturing Reforms
   1. Stressed the need for resilient, reliable, and redundant supply chains.
   2. Called for democratising manufacturing across different geographies to ensure regional self-sufficiency.
   3. This would help manage disruptions in global trade during conflicts and crises.
5. Call for Reforming Multilateralism
   1. Emphasised the need for reforms in global institutions like the UN and WTO.
   2. Advocated for fairer representation of the Global South in global governance.
   3. Urged diplomatic resolution of conflicts, especially to address food, fertiliser, and energy insecurity.

Implications

1. For India’s Trade Policy
   1. India asserts its strategic autonomy by balancing U.S. pressure with BRICS solidarity.
   2. Strengthens India’s demand for a transparent and fair trade regime.
2. For BRICS Cooperation
   1. Opportunity for BRICS to position itself as an alternative to Western-dominated financial and trade systems.
   2. India’s trade deficits with BRICS may push for new internal mechanisms to balance trade.
3. For Global South
   1. Voices concerns of developing nations on food, energy, and fertiliser security.
   2. Positions India as a leader of the Global South seeking equitable economic frameworks.
4. For Multilateral Institutions
   1. Adds urgency to UN and WTO reforms, aligning with India’s long-term demand for inclusivity.
   2. Pushes forward the agenda of global governance reform at the next UN General Assembly.
5. For Geopolitical Balancing
   1. India walks a tightrope between U.S. ties and BRICS partnerships.
   2. Demonstrates New Delhi’s approach of multi-alignment instead of bloc politics.

Challenges and Way Forward

Conclusion

Jaishankar’s remarks at the BRICS Summit underscore India’s demand for a fair and predictable global trading system that is insulated from geopolitical coercion. At a time when the U.S. imposes punitive tariffs and global institutions appear ineffective, India is positioning itself as a voice of reason and balance — advocating resilience, multilateral reform, and equitable development. For New Delhi, this is both an assertion of strategic autonomy and a call to build a just, inclusive, and cooperative international order.