18th BRICS Summit Overview

The 18th BRICS Summit was notable for its expanded membership, comprising 11 countries and 10 official partners/observers. It was held in a context of shifting global multilateral orders and regional reconfigurations. Key participants included major global actors and nations affected by ongoing conflicts and realignments.

BRICS New Delhi Declaration

The Declaration was wide-ranging and substantive, addressing diverse member interests and strategic positions. However, it highlighted critical issues, especially those concerning trade policy and the World Trade Organization (WTO) reforms, which necessitate immediate attention from India.

India's Role and Action Plan

WTO Reform Stance

• India needs to develop a comprehensive country paper on necessary WTO reforms to address global trade's evolving nature, a high-priority task.
• Major economies, such as the US, EU, and China, have already submitted detailed reform agendas. India's commitment to WTO revival, as stated in the BRICS joint statement, needs to be backed by a concrete reform agenda.

Emphasis on Plurilaterals

• Plurilaterals, involving groups of like-minded countries, are gaining traction due to challenges in achieving multilateral agreements through consensus.
• The 14th ministerial conference highlighted urgency due to unresolved plurilateral agreements on ecommerce and investment facilitation.
• Two critical issues identified: 
  1. Legal incorporation of plurilateral agreements within the WTO framework.
  2. Restriction of benefits exclusively to participating members or extension to non-participating members.
• India's recent note to the WTO on plurilaterals indicates willingness for discussion, but it needs to reassess its understanding of the evolving global trade rule-making landscape.

Multi-Party Interim Appeal Arbitration Arrangement (MPIA)

• India may need to reconsider joining the MPIA, an interim plurilateral arrangement for dispute settlement in the absence of a fully functional WTO Appellate Body.
• MPIA has 61 participating members, including key trade partners like the EU, China, and Australia.

Subsidies-Related Reforms

• Given geopolitical pressures, revisiting subsidies-related disciplines is essential. For India, subsidies are critical for food security and development, necessitating balanced reform proposals.

Carbon Border Adjustment Mechanism (CBAM) Concerns

• India should address the CBAM's impact on manufacturing competitiveness in the developing world.
• Alignment of India's carbon credit trading scheme with global frameworks is needed, along with support for SMEs to comply with EU CBAM procedures.

In conclusion, India must urgently translate its intentions into outcomes to advance trade policy issues in BRICS, WTO, and other international forums.