SCO Trade Ministers’ Meeting: India Warns Against Weaponizing Export Policies and Supports WTO-Centered Fair Trade
India has raised concerns regarding the potential misuse of export-related measures during the Shanghai Cooperation Organisation (SCO) Trade Ministers’ Meeting in Vladivostok. The Indian commerce ministry emphasized the importance of using these measures transparently to avoid creating artificial scarcity and market distortions. With India’s trade deficit with China nearing $100 billion, the country called for enhanced market access and cooperation to address ongoing trade challenges, particularly in the auto and electronics sectors.
Concerns Over Export Measures
During the recent SCO Trade Ministers’ Meeting, India voiced its apprehensions about the misuse of export-related measures that could lead to artificial scarcity and market disruptions. The Indian commerce ministry issued a statement underscoring that these measures should not be weaponized. It highlighted the necessity for their calibrated and transparent application to maintain trust in international trade. This caution comes at a time when India’s auto and electronics sectors have faced significant disruptions due to China’s export restrictions on essential materials like rare earth magnets and fertilizers.
India’s trade deficit with China has widened alarmingly, reaching nearly $100 billion in the fiscal year 2024-25. This situation has prompted India to advocate for a more equitable trading environment that ensures fair access to markets and minimizes trade barriers. The emphasis on transparency and fairness in trade practices is crucial for fostering a stable economic environment within the region.
Addressing Trade Deficits
At the meeting, India called for collaborative efforts to tackle persistent trade deficits among SCO member states. The country urged for greater market access and the simplification of trade facilitation processes. Amitabh Kumar, representing India, stressed the importance of enhancing cooperation on standards to improve trade flows. He pointed out that the SCO, which comprises 42 percent of the world’s population and 17.2 percent of global trade, has a significant role in shaping international commerce.
India’s focus on addressing trade deficits is particularly relevant given the current economic climate. The country is keen on establishing a framework that promotes inclusive growth and reduces vulnerabilities in trade. By advocating for a more integrated approach to trade, India aims to strengthen its economic ties with other SCO nations and ensure a more balanced trading landscape.
Digital Trade Initiatives
In addition to addressing traditional trade issues, India also proposed initiatives aimed at enhancing digital trade within the SCO framework. The country suggested the establishment of workstreams focused on creating fair, transparent, and predictable regulatory frameworks for digital commerce. India emphasized the importance of voluntary cooperation on best practices and capacity-building efforts to support secure digitalization across member states.
India showcased its advancements in Digital Public Infrastructure, including the Unified Payments Interface (UPI) for real-time payments and the India Stack initiative. These innovations are presented as low-cost, replicable models that other SCO nations could adopt to enhance their digital economies. By promoting digital trade, India aims to foster economic growth and improve trade efficiency among member countries.
Commitment to Sustainable Growth
Reaffirming its commitment to the SCO’s trade and economic agenda, India expressed gratitude to the Russian Presidency for its leadership. The country is prepared to collaborate under Tajikistan’s upcoming chairmanship of the SCO Council of Heads of Government to promote sustainable regional growth. India highlighted the need for a development-centered agenda that includes solutions for food security and effective treatment for developing countries within the World Trade Organization (WTO).
Furthermore, India stressed that trade-related climate measures should not lead to arbitrary discrimination against member states. The country also emphasized the significance of services trade, skilled professional mobility, and the integration of micro, small, and medium enterprises (MSMEs) into global value chains. By focusing on these areas, India aims to strengthen inclusive growth and ensure that all member states benefit from the evolving trade landscape.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
Follow Us on Twitter, Instagram, Facebook, & LinkedIn
