Indiscriminate tariff hike likely to dampen global trade — BRICS

RIO DE JANEIRO  - BRICS member countries on Sunday at the ongoing 17th BRICS Summit in Brazil protested the proliferation of trade-restrictive actions, warning that they threaten to reduce global trade, disrupt global supply chains, and introduce uncertainty into international economic and trade activities.

The leaders meeting under the theme, “Strengthening Global South Cooperation for a More Inclusive and Sustainable Governance,” said these actions whether in the form of indiscriminate rising of tariffs and non tariff measures, or protectionism under the guise of environmental objectives, may exacerbating existing economic disparities and affecting prospects for global economic development.

"We voice serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with World Trade Organisation (WTO) rules," the statement issued at the meeting said.

They called for a multilateral trading system that is rules-based, open, transparent, fair, inclusive, equitable, non-discriminatory, and consensus-based. They said this trading system should have WTO at its core, with special and differential treatment for its developing members.

The leaders said WTO remains the only multilateral institution with the necessary mandate, expertise, universal reach and capacity to lead on the multiple dimensions of international trade discussions, including the negotiation of new trade rules.

They called for the reform of WTO to ensure its relevance and restore the credibility of the multilateral trading system.

"We remain committed to the urgent restoration of an accessible, effective, fully-functioning, two-tier binding WTO dispute settlement system," they said.

President of the Republic of Brazil, Luiz Inácio Lula da Silva speaking during the plenary session "Peace, Security and Reform of Global Governance", at the Museum of Modern Art in Rio de Janeiro, on July 6th. 2025. (Credit: Hajarah Nalwadda)

The Leaders of BRICS member countries' declaration also strongly condemned Israel's military actions in the Middle East, calling for a coordinated international response to address pressing issues of peace and security. 

The group emphasised the urgent need for a long-term solution to the Palestinian situation and condemned recent military attacks against Iran, citing associated nuclear risks.

Furthermore, the declaration highlighted the support from Russia and China, both permanent UN Security Council members, for Brazil and India's bid for increased prominence within the UN body.  

BRICS is an acronym for Brazil, Russia, India, China and South Africa, the five major emerging markets with significant economic potential.

The bloc's membership has expanded since its first summit in 2009. In Africa, Egypt, Ethiopia and South Africa are the only full member states of the bloc.

The member countries represent 39 percent of the world economy, 48.5 percent of the global population and 23 percent of global trade.

The bloc in 2015 established a multilateral development bank, New Development Bank (NDB), to mobilise resources to finance infrastructure and sustainable development projects in developing countries.

The NDB has already approved 120 projects reflecting 39 billion dollars in financing.
India will host the next BRICS summit next year as it takes on the chairmanship of the bloc.