What Do SCO Nations Propose for a Fair Trading System Amid US Tariff Turmoil?
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Synopsis
In a pivotal meeting in Tianjin, SCO leaders emphasized the need for a multilateral trading system to counteract unilateral actions that disrupt global trade. With participation from major leaders like Modi, Xi, and Putin, the summit focused on sustainable development, digital economy, and enhancing cooperation across various sectors.
Key Takeaways
- Commitment to a multilateral trading system.
- Opposition to unilateral economic measures.
- Focus on sustainable development and innovation.
- Enhanced cooperation in digital economy and e-commerce.
- Establishment of an SCO Development Bank.
Tianjin (China), Sep 1 (NationPress) The leaders of the Shanghai Cooperation Organisation (SCO) member nations convened on Monday to affirm their commitment to fostering an open, transparent, fair, non-discriminatory, and multilateral trading framework grounded in universally acknowledged international principles and regulations that advocate for the advancement of an open global economy.
The summit saw participation from Prime Minister Narendra Modi, Chinese President Xi Jinping, and Russian President Vladimir Putin, culminating in a declaration endorsing the multilateral trading system.
As noted in the joint declaration, "Member States reject unilateral coercive actions, especially economic ones, which violate the UN Charter and other international legal standards, as well as the principles of the World Trade Organisation. Such actions threaten international security, including food and energy, adversely impact the global economy, hinder fair competition, and obstruct international collaboration towards achieving the UN Sustainable Development Goals."
This statement emerges against the backdrop of the tariff disruptions instigated by US President Donald Trump, creating significant economic uncertainty in global markets.
The SCO nations endorsed enhancing people-centered cooperation on matters aimed at elevating the well-being and living standards within the SCO region. They will persist in executing the Programme of Multilateral Trade and Economic Cooperation alongside the SCO Economic Development Strategy through 2030, as well as the related Action Plan.
The member states resolved to voluntarily advance collaboration in accordance with their national laws through special economic zones, leveraging the potential of the China-SCO Regional Trade and Economic Cooperation Demonstration Zone in Qingdao.
They aim to bolster cooperation in e-commerce, develop digital trade infrastructure, and address the disparities between developed and developing nations in the digital economy. A proposal was made to formulate a Programme of Cooperation in the e-commerce sector among SCO member states. A statement was also unanimously passed to enhance collaboration in the digital economy.
Moreover, the nations recognized the necessity of establishing an SCO mechanism for export credit and investment.
They stressed that fostering innovation and creative industries is vital for boosting the competitiveness of economies, nurturing small and medium enterprises, and expanding employment opportunities, especially in rural and remote areas within SCO countries.
In this context, they advocated for intensifying efforts within the SCO Technoparks and Innovation Clusters Pool, as well as supporting initiatives like the SCO Future Technologies Programme and harnessing the potential of the Alem. AI international centre for innovation.
The members acknowledged the adoption of a statement by authorized ministries and departments aimed at strengthening investment cooperation focused on sustainable development, alongside a proposal to develop measures to promote mutual investments among SCO nations.
The SCO members also expressed their backing for the reform of the international financial system to enhance the representation and roles of developing countries within the governing bodies of international financial institutions, including the International Bank for Reconstruction and Development and the International Monetary Fund.
The member states underscored the significance of financial collaboration in driving economic growth within the SCO region and emphasized the importance of implementing a roadmap for increasing the utilization of national currencies in mutual transactions.
Reiterating the necessity of establishing an SCO Development Bank, the interested member states committed to its formation and to intensifying discussions on various operational aspects of this financial entity.
A statement was also approved regarding cooperation in the green industry.
The member nations expressed their support for expanding inclusive and mutually beneficial energy cooperation, ensuring the sustainability of energy production and supply chains, while committing to promote the sustainable and balanced development of a non-discriminatory global energy market.
Point of View
I recognize that the SCO's commitment to fostering a multilateral trading framework is crucial in today’s turbulent economic climate. The stance against unilateral actions reflects a collective desire among nations to maintain stability and promote equitable growth, especially for developing countries. This summit’s outcomes may shape future economic policies and international relations significantly.
NationPress
01/09/2025
Frequently Asked Questions
What is the significance of the SCO summit?
The SCO summit is crucial as it addresses the need for a multilateral trading system amidst global economic uncertainties, particularly those stemming from unilateral actions by major economies.
How did the US tariffs impact the global economy?
US tariffs have created economic instability, affecting international trade relationships and prompting nations to seek cooperative solutions to mitigate these disruptions.
What initiatives were proposed at the SCO summit?
Initiatives include enhancing cooperation in e-commerce, establishing a Development Bank, and promoting sustainable economic practices among member states.
Who attended the SCO summit?
Key attendees included Prime Minister Narendra Modi of India, President Xi Jinping of China, and President Vladimir Putin of Russia.
What goals were emphasized by SCO member states?
Member states emphasized the importance of improving living standards, promoting digital trade, and fostering innovation to boost economic competitiveness.
