New Delhi: BRICS leaders Saturday called for a sweeping reform of the global financial architecture to give emerging markets and developing economies a greater voice in the IMF and World Bank, while strongly criticising unilateral tariffs, trade restrictions and economic sanctions.
In the New Delhi Declaration, the grouping delivered a pointed warning on the global trading system, saying rising protectionism and unilateral trade measures threaten global commerce and supply chains.
“We voice serious concerns about the rise of unilateral tariff and non-tariff measures which distort trade and are inconsistent with WTO rules,” BRICS said.
It warned that trade-restrictive measures could “further reduce global trade, disrupt global supply chains, and introduce uncertainty into international economic and trade activities”.
BRICS reaffirmed support for a rules-based multilateral trading system centred on the World Trade Organization and called for the restoration of its dispute-settlement mechanism.
“We strongly advocate for the immediate restoration of an accessible, effective, fully functioning, two-tier binding WTO dispute settlement mechanism as a foundation for trust and predictability for all WTO members,” the declaration said.
It also called for “the appointment of new Appellate Body members without further delay”.
The grouping backed Ethiopia and Iran’s bids to join the WTO and acknowledged China’s move to expand zero-tariff treatment to 53 African countries with which it has diplomatic ties.
BRICS also condemned unilateral economic and secondary sanctions, arguing that they have consequences for populations in targeted countries.
“We condemn the imposition of unilateral coercive measures that are contrary to international law,” the declaration said.
It said such measures have “far-reaching negative implications for the human rights, including the rights to development, health and food security, of the general population of targeted states”.
“We call for the elimination of such unlawful measures, which undermine international law and the principles and purposes of the UN Charter,” BRICS said.
The declaration reaffirmed the bloc’s opposition to unilateral coercive measures, including sanctions not authorised by the UN Security Council.
The BRICS criticism comes against a backdrop of a sharp expansion in US tariff measures under President Donald Trump, who has used tariffs as a central instrument of his trade policy, including broad reciprocal duties and country-specific measures. The moves have raised concerns among trading partners over disruption to global supply chains and the rules-based trading system.
The grouping reaffirmed support for a rules-based multilateral trading system with the WTO at its core, while calling for the immediate restoration of an accessible and fully functioning two-tier binding dispute-settlement mechanism.
It also called for the appointment of new members to the WTO Appellate Body “without further delay”.
The declaration said BRICS would coordinate more closely on WTO reform and work towards strengthening the organisation’s authority, effectiveness and relevance.
BRICS also condemned unilateral coercive measures, including economic and secondary sanctions that are not authorised by the UN Security Council.
The grouping said such measures have “far-reaching negative implications” for populations in targeted countries, including effects on human rights, development, health and food security.
It called for the elimination of what it described as unlawful measures, saying they undermine international law and the principles of the UN Charter.
The grouping said the governance structures of the Bretton Woods Institutions (BWI) – principally the International Monetary Fund and World Bank – must be reformed to reflect changes in the global economy since their creation.
“BWI governance structure should be reformed to reflect the transformation of the global economy since their establishment,” the declaration said.
“The voice and representation of emerging markets and developing economies (EMDEs) in the BWI must reflect their relative position in the global economy.”
BRICS also called for changes to the process of selecting the leadership of the IMF and World Bank.
“We also reiterate our call for improved management procedures, including through a merit-based, inclusive and transparent selection process that would increase regional diversity and representation of EMDEs in the leadership of the IMF and the World Bank,” the declaration said.
The bloc reaffirmed its support for the BRICS Rio de Janeiro Vision for IMF Quota and Governance Reform, calling for a stronger and adequately funded IMF at the centre of the global financial safety net.
“We urge entry into effect of the quota increases agreed under the 16th General Review of Quotas (GRQ) with no further delay and call for the development of approaches to meaningful quota realignment under the 17th GRQ at the earliest,” BRICS said.
It said quota realignment should increase the voting and quota shares of EMDEs while protecting poorer developing countries.
“Quota realignment should reflect countries’ relative positions in the global economy, increase the quota and voting shares of EMDEs and should not come at the expense of developing countries,” the declaration said.
BRICS also said voluntary financial contributions to the IMF should not determine countries’ influence within the institution.
“We also believe that any voluntary financial contributions should not influence quota allocation, governance representation and voting power,” it said.
On the World Bank, BRICS said the 2025 Shareholding Review should help strengthen the institution and correct the under-representation of developing economies.
“In line with the Lima Principles, we reaffirm that BRICS countries should continue to advocate for the increased voice and representation of developing countries, underpinned by a shareholding realignment that corrects their historic underrepresentation,” the declaration said.
