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In times of trade volatility, multilateralism, and trust deficit, India has called on the developing and less-developed nations to collectively work to address global trade uncertainties. 

“It is time for the Global South to speak with one voice on concerns that impact all of us,” said Piyush Goyal, Commerce and Industry Minister, at the 16th session of the United Nations Conference on Trade and Development (UNCTAD) in Geneva on Wednesday.

The challenges, said the minister, come in many forms: from tariff barriers and unilateral environmental restrictions, to hurdles in the services sector and ambiguities in the global trading system.

“We are living in a world marked by a profound trust deficit, whether in multilateral institutions, different international bodies, or amongst nations, multiple critical challenges confront us almost on a daily basis. These challenges are multi-faceted,” he stated.

“It could be the erosion of confidence in the rules-based trading system, a lot of non-market practices coming into play, tariff and non-tariff barriers to free trade. There is over-concentration of supply chains, both at the source and at times on the demand side,” he added.

 

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The dilution of the special and differential treatment that was provided to developing and less-developed countries (LDCs) when the WTO (World Trade Organisation) was originally set up, is now marked, Goyal noted.

Raising concerns over barriers such as unilateral environmental restrictions (carbon tax) that certain countries and geographies are introducing, technologies that are dividing the world, as well as the restrictive policies and barriers in the services sector, the minister said these issues “are all out there in the open for all of us to see and make an effort to address”.

These challenges, he added, affect the less-developed and the developing world “the most” because “they have a development agenda”. 

“They [developing countries] are looking for growth. They are looking to come out of poverty. Many countries are looking to provide a better quality of life for their people… In this uncertain world, efforts to eliminate poverty, and to meet sustainable development goals become a casualty. I think we all need to have a reset, a new way to address these challenges,” he said.