New Delhi Declaration focuses on MSMEs, raises concerns over rise of unilateral tariff measures, Pg11

Key Highlights:

• The New Delhi Declaration was adopted at the 18th BRICS summit, focusing on Micro, Small, and Medium Enterprises (MSMEs).
• The declaration expressed concerns over the rise of unilateral tariff and non-tariff measures.
• It called for reforms in the World Trade Organization (WTO), International Monetary Fund (IMF), World Bank, and United Nations (UN) bodies.
• BRICS nations advocated for the accession of Ethiopia and Iran to the WTO.
• India held the BRICS chairship in 2026.

Detailed Insights:

• The declaration aimed to help MSMEs integrate into and move up the global value chain.
• The inaugural BRICS SME Forum was convened in Agra, releasing a report on MSME competitiveness.
• Access to affordable finance was identified as a primary bottleneck limiting MSMEs' participation in trade.
• The declaration welcomed the Jaipur Consensus to study an Invoice Discounting Mechanism for BRICS members.
• BRICS nations voiced serious concerns that unilateral measures distort trade and are inconsistent with WTO rules.
• They condemned unilateral coercive measures, including economic sanctions, for their negative implications on human rights and development.
• The declaration reaffirmed support for a non-discriminatory, rules-based multilateral trading system with the WTO at its core.
• China expanded its zero-tariff treatment to 53 African countries.

Key Concepts Involved:

• Micro, Small, and Medium Enterprises (MSMEs): Businesses categorized by size, crucial for employment generation and economic growth.
• Unilateral Tariff Measures: Trade barriers imposed by one country without multilateral agreement, often violating international trade norms.
• Global Value Chains (GVCs): International production networks where different stages of a product's creation are spread across various countries.
• Invoice Discounting Mechanism: A financial service allowing businesses to sell their unpaid invoices to a third party at a discount for immediate cash flow.
• World Trade Organization (WTO): An intergovernmental organization that regulates and facilitates international trade between nations.