Removing non-tariff barriers, smooth payment mechanism key to boosting BRICS trade: EEPC India

Removing non-tariff barriers and establishing smooth payment mechanisms in national currencies can resolve a major share of the problems faced by exporters and boost trade among BRICS countries, EEPC India said on Sunday.

EEPC India Chairman Pankaj Chadha said the grouping should move towards a common agreement on non-tariff barriers and a set of mutually accepted standards.

"Around 75 per cent of the problems faced by exporters can be solved by eliminating non-tariff barriers and having a smooth and efficient payment mechanism in individual national currencies," Chadha said.

"We can have a common agreement on non-tariff barriers between BRICS nations and agree to a set of standards. While we have been discussing this for a while now, it is time to move to its execution," he said.

Chadha said non-tariff measures are widely recognised as adding more costs to exports than tariffs in most countries, making it necessary to simplify regulatory procedures between trading partners.

BRICS accounts for nearly one-fourth of global trade, and removing such barriers could help the grouping further increase its share of cross-border commerce, according to EEPC India.

The engineering exports promotion body said trade facilitation measures would be particularly significant for India as engineering goods constitute one of the country's major export segments.

According to the latest available official data, engineering exports account for nearly 27 per cent of India's total merchandise exports.

Brazil, China, Indonesia, Saudi Arabia and South Africa are among the key destinations for India's engineering exports within the major BRICS economies.

India is currently hosting the BRICS Summit.