BRICS finance ministers, central bank chiefs flag concerns on unilateral tariffs

Flagging “serious concerns” about the unilateral imposition of tariffs and non-tariff measures, BRICS finance ministers and central bank governors (FMCBG) in a joint statement said that such measures distort trade and are inconsistent with World Trade Organisation (WTO) rules.

Highlighting the growing share of emerging markets and developing economies (EMDEs) in global output and growth, the BRICS FMCBG also called for a merit-based, inclusive and transparent selection process that would increase regional diversity and representation of EMDEs in the leadership of the International Monetary Fund (IMF) and the World Bank.

Noting that the global economy is facing significant headwinds, the FMCBG said risks to the global economic outlook remain elevated, reflecting persistent geopolitical tensions, trade fragmentation and protectionism, policy uncertainty, fiscal and inflationary pressures, growing debt and financial vulnerabilities.

“We continue to have serious concerns with the unilateral imposition of trade and finance-related actions, including the raising of tariffs and non-tariff measures, which distort trade and are inconsistent with WTO rules.

These pressures weigh most heavily on EMDEs. BRICS economies, however, have demonstrated resilience and continue to make a significant contribution to a stable, strong, sustainable, inclusive and balanced global growth,” the joint statement released late Thursday said.

The Finance Ministers and Central Bank Governors of the BRICS countries had met in Jaipur on August 12-13 and in Mumbai on September 10 under the theme “Building for Resilience, Innovation, Cooperation and Sustainability”.

India is hosting the 18th BRICS Summit in New Delhi on September 12-13. BRICS is an informal grouping of 11 major emerging markets and developing countries: Brazil, China, Egypt, Ethiopia, India, Indonesia, Iran, Russia, Saudi Arabia, South Africa and the United Arab Emirates.

Under the BRICS theme for this year, the FMCBG statement said they seek to “strengthen collective capacities, promote innovation, and advance sustainable development and resilience in the face of evolving global challenges”.

On the reforms required for global economic governance, the FMCBG said they will continue to strengthen coordination among BRICS members to make international financial institutions more representative, transparent and accountable.

“We reiterate the urgent need to reform the Bretton Woods Institutions (BWI) to make them more agile, effective, credible, inclusive, fit for purpose, unbiased, accountable, and representative, to enhance their legitimacy.

BWI governance structure should be reformed to reflect the transformation of the global economy since their establishment. The voice and representation of EMDEs in the BWI must reflect their relative position in the global economy.

We also reiterate our call for improved management procedures, including through a merit-based, inclusive and transparent selection process that would increase regional diversity and representation of EMDEs in the leadership of the IMF and the World Bank,” the statement said.

Stating that quota realignment should reflect countries’ relative positions in the global economy, the FMCBG statement said there should be an increase in the quota and voting shares of EMDEs and it should not come at the expense of developing countries.

It said this should be done while ensuring that a new, simple and transparent quota formula protects the quota shares of the poorest members and guides, but does not constrain, access to Fund resources. The BRICS FMCBG also said that any voluntary financial contributions should not influence quota allocation, governance representation and voting power in multilateral development institutions.

“In line with the Lima Principles, we reaffirm that BRICS countries should continue to advocate for the increased voice and representation of developing countries, underpinned by a shareholding realignment that corrects their historic underrepresentation,” it said.

Aanchal Magazine is a Deputy Associate Editor with The Indian Express, serving as a leading voice on the macroeconomy and fiscal policy. With 15 years of newsroom experience, she is recognized for her ability to decode complex economic data and government policy for a wider audience.

Expertise & Focus Areas: Magazine’s reporting is rooted in "fiscal arithmetic" and economic science. Her work provides critical insights into the financial health of the nation, focusing on: Macroeconomic Policy: Detailed tracking of GDP growth, inflation trends, and central bank policy actions.

Fiscal Metrics: Analysis of taxation, revenue collection, and government spending. Labour & Society: Reporting on labour trends and the intersection of economic policy with employment. Her expertise lies in interpreting high-frequency economic indicators to explain the broader trajectory of the Indian economy.

Personal Interests: Beyond the world of finance and statistics, Aanchal maintains a deep personal interest in the history of her homeland, Kashmir. In her spare time, she reads extensively about the region's culture and traditions and works to map the complex journeys of displacement associated with it.

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