Global South must unite to combat rising global trade uncertainty: Piyush Goyal

New Delhi: India’s Commerce and Industry Minister Piyush Goyal has called on the Global South to speak with one voice to address growing uncertainty, inequality and mistrust in the global trading system, warning that the rules-based order is under pressure from unilateral measures and protectionist barriers. Addressing the 16th Session of the United Nations Conference on Trade and Development (UNCTAD) in Geneva on Wednesday, Goyal said the world was experiencing “an era of profound trust deficit” about multilateral institutions, international bodies and even nations. Tariff and non-tariff barriers, non-market practices and over-concentrated supply chains have eroded confidence in the global trading system, he added. “A lot of non-market practices come into play… There is an over-concentration of supply chains, both at the source and sometimes at the demand side. There is also a dilution of the special and differential treatment that was provided when the WTO was originally established,” he said. Various countries’ unilateral restrictions on technology and services “are all out there for all of us to see”, Goyal said, adding that these challenges hit developing countries the hardest. In August, US President Donald Trump imposed an additional 25% tariff on Indian goods due to New Delhi’s oil imports from Russia. This followed an earlier ‘reciprocal tariff’ of 25% announced in April as part of Washington’s broader effort to combat trade imbalances. The higher taxes have hurt India’s export sector, particularly labor-intensive industries such as textiles, leather, gems and jewellery. The impact was evident in September, the first full month under the new tariff regime, when India’s goods exports to the US fell 11.9% year-on-year to $6.02 billion, from $6.41 billion in August. The US has also tightened visa rules, raised the one-time fee for H-1B visa applications from $1,000 to $100,000 and sowed chaos in India’s IT services sector, among other things. The US is India’s largest single export market, accounting for about 2% of GDP. ‘Developed world has not done its part’ During his speech, Goyal also criticized developed countries for failing to meet the climate finance commitments they entered into in the 2015 Paris Agreement, pointing out that the promised $100 billion a year in low-cost or grant-based funding had yet to materialise. “I do think that, despite various promises made at Cop 21 in Paris, the developed countries have not yet fulfilled their end of the bargain,” he said. “We still need to see technology coming from the developed world to help less developed countries in their fight against climate change,” he added. He also pointed to what he called a “dilution of special and differential treatment” for developing countries under the World Trade Organization framework, warning that unilateral environmental and digital restrictions were further dividing the world. Underscoring India’s growth model as a template for inclusive development, Goyal said the country has lifted 250 million people out of poverty in the past 12 years and is now among the world’s top five economies. On sustainability, Goyal highlighted India’s leadership in the International Solar Alliance, Global Biofuel Alliance and Coalition for Disaster Resilient Infrastructure and said half of India’s current 250 GW power capacity comes from renewable sources, which it aims to double by 2030. Although home to 17% of the world’s global population, it contributes 5% of the world’s population, contributing to 3% of the world’s. said, called on developed economies to “their end of the bargain”.