“The situation in the global economy is disturbing,” Putin told the leaders of Brazil, India, China and South Africa, who were gathered for the G20 summit in Osaka, Japan.
It is symptomatic that international trade is no longer the engine of economic growth and is experiencing an increasingly heavy burden of protectionism, politically motivated restrictions and barriers
The Russian leader called on members of the BRICS community to unite to tackle “protectionist” tendencies in world trade and to increasingly use national currencies in international transactions to stabilize any potential instabilities. At the same time, Putin noted that member states should also seek to reform the International Monetary Fund in order to increase the influence of developing countries within the organization.
The developing economies, Putin said, must take a more “proactive role in forming a fair and sustainable global development model.”
At the same time, clear and understandable rules must be created to regulate transnational corporations in order to avoid the monopolization of markets or access to technologies. Russia, he stressed, considers “any attempts to destroy the WTO or reduce its role” counterproductive as the world slides into trade conflicts.
The global economy is being ruled by “one-sided” dictate, said Indian Prime Minister Narendra Modi, calling for reform of the WTO to ensure fair practices and equal rights for all countries.
We should still focus on the World Trade Organization reform to achieve balanced development of the global economy and so this growth is open to everyone.
Chinese leader Xi Jinping meanwhile singled out protectionism as the source of instability in the global economy, calling for joint efforts to protect WTO members from such risks. He noted that BRICS countries should “increase our resilience and capability to cope with external risks” that impact the “common interests of our countries and overshadow the peace and stability world-wide.”
All this is destroying the global trade order.
Both Indian and Chinese leaders are due to have bilateral meetings with US President Donald Trump on the sidelines of the summit, where both countries will try to defend their trade positions amid the belligerent trade rhetoric coming from the US administration. Putin will also meet Trump later on Friday.