India Cautions Against Misuse of Export Measures at SCO Trade Ministers Meeting

India has taken a strong stance against the misuse of export-related measures at the recent Shanghai Cooperation Organisation (SCO) Trade Ministers' Meeting held in Vladivostok. The country emphasized the importance of maintaining trust in international commerce through calibrated and transparent use of export measures.

Key Highlights

• India warned against creating artificial scarcity, distorting markets, and disrupting supply chains through export-related measures.
• The country called for addressing persistent trade deficits by improving market access and simplifying trade facilitation processes.
• India's auto and electronics sectors have faced challenges due to China's export restrictions on rare earth magnets and fertilizer.
• The trade deficit with China has risen to approximately ₹100 billion.

India's Representation and Proposals

Amitabh Kumar, Additional Secretary from the Department of Commerce, represented India at the meeting. He highlighted several crucial points:

• The need for an open, fair, and non-discriminatory multilateral trading system with the World Trade Organization (WTO) at its core.
• Proposed SCO workstreams for the digital economy, focusing on:
  1. Fair regulatory frameworks
  2. Capacity-building for secure digitalization

Addressing Trade Imbalances

India's concerns stem from recent challenges faced by its industries:

• The auto and electronics sectors have been impacted by China's export restrictions on critical components.
• The growing trade deficit with China, which has reached a significant ₹100 billion, underscores the need for balanced trade relationships.

Call for Transparency and Fairness

India's message at the SCO meeting was clear: export measures should not be weaponized to create market distortions or disrupt global supply chains. The country advocated for:

• Transparent use of export measures
• Calibrated approaches to maintain trust in international trade
• Simplified trade facilitation processes to address persistent deficits

Focus on Digital Economy

In a forward-looking move, India proposed SCO workstreams centered on the digital economy. These proposals aim to:

• Establish fair regulatory frameworks
• Build capacity for secure digitalization among member nations

The proposals reflect India's commitment to fostering a robust digital ecosystem within the SCO framework.

India's stance at the SCO Trade Ministers' Meeting underscores its commitment to fair and transparent global trade practices. By addressing concerns about export measures and proposing initiatives for the digital economy, India aims to contribute to a more balanced and cooperative economic environment within the Shanghai Cooperation Organisation.