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Commerce and Industry Minister Piyush Goyal on Thursday stressed the need for trust and transparency between trading partners for sustainability of global supply chains.
At the meeting of Trade Ministers from Brazil, Russia, India, China, South Africa, (BRICS) Goyal, without naming China with which India is engaged in a border skirmish that has spilled on the trade front, said that for trade to play its part in the recovery process (from disruptions caused by Covid-19 ) all the partners must be trustworthy and transparent.
“It is trust and transparency which determine the sustainability of global supply chains and nations must demonstrate their compliance with global rules of trade to remain a part of global trade flow,” he said.
The BRICS Trade Ministers’ virtual meeting, hosted by Russia on July 23, was also attended by Chinese Commerce Minister Zhong Shan, Russian Minister for Economic Development Maxim Reshetnikov, Brazil’s Deputy Minister of Foreign Trade Roberto Fendt and South Africa’s Minister of Trade and Industry Ebrahim Patel.
Goyal observed that increasingly nations which trust each other were coming together to build global supply chains with corresponding investments in manufacturing and services.
“I cannot overemphasise the need for all nations to enhance transparency in their trade and build trust to prevent losing their role as a pre-eminent trade partner,” he said.
Goyal’s comments are interesting, especially in the light of attempts being made by India to reduce its import dependence on China because of tensions.
Following the US-China trade war, some investors have started moving out of China and were looking for alternative destinations.
Interestingly, US Secretary of State Mike Pompeo said at a recent public event that India has a chance of attracting global supply chains from China.
BRICS Trade Ministers’ discussed their responses to the Covid-19 outbreak, worked on BRICS Economic Partnership 2025, reforming the World Trade Organisation and cooperation for MSMEs.
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