BRICS can play an important role in strengthening multi-lateral institutions like WTO, IMF and UN systems, Commerce and Industry Minister Nirmala Sitharaman on Thursday said. The global governance structures ‘do not reflect the reality and this is where urgent changes are required’. She made these remarks here at the inauguration of BRICS (Brazil, Russia, India, China and South Africa) Trade Fair at Pragati Maidan here.
“It is from this point of view that articulation of positions by BRICS countries and taking united stand on issues of common concern, holds immense significance for ensuring equity, justice and inclusiveness for developing countries,” Sitharaman said. “We believe that BRICS can play a positive role in strengthening the multi-lateral institutions, especially WTO, IMF, the World Bank and UN systems.” She said further that establishment of New Development Bank (NDB) is indicative of the urgent need for reforms of the global financial system towards new global rules-setting. NDB was set up by the BRICS members.
On trade issues, the minister said trade among the BRICS nations is less than 5 per cent of their total global trade and ‘we need to find innovative ways of increasing intra-BRICS trade’. She attributed this to the subdued global trade as it has impacted BRICS economies differently -- some through falling commodity prices and others due to shrinking demand for manufactured goods. In this gloomy scenario, it has been observed that nations are resorting to protectionist measures in the form of NTMs (non-tariff measures), creating invisible walls against free trade, the minister noted.