Tariff delay deepens economic uncertainty, warns ITC chief
Speaking at a public forum, Coke-Hamilton criticised the US decision to delay the imposition of steep reciprocal tariffs, noting that while the pause temporarily shields developing countries from the harshest rates—ranging from 40 to 50 per cent in some cases—it comes at the cost of strategic clarity.
The US tariff pause extension to August 1, 2025, has intensified trade uncertainty, particularly for developing nations. ITC head Pamela Coke-Hamilton warned it undermines investment and disrupts contracts, with layered duties harming exporters. Over 150 new trade barriers, a 28 per cent cut in G7 aid, and new tariffs on BRICS-aligned nations add to instability.
'This move extends the period of uncertainty, undermining long-term investment and business contracts, creating further instability,' she said.
Coke-Hamilton highlighted that although the current 10 per cent levy is less punitive than the proposed reciprocal rates, it remains an additional cost on top of existing duties. This layered burden disproportionately affects low-income exporters in apparel and agriculture.
The broader impact of restrictive trade policies is evident in the over 150 new trade barriers tracked globally in 2025 alone, exacerbating the downturn that began with the Ukraine war and rising geopolitical friction.
Developing nations are hit hardest. Lesotho, for instance, faces a looming 50 per cent tariff on apparel exports—jeopardising duty-free benefits under the African Growth and Opportunity Act and endangering tens of thousands of jobs. Vietnam, despite negotiating a lower rate, now faces a 20 per cent tariff—double the temporary 10 per cent base and still a major hurdle for its nearly $1 billion auto sector exports to the US.
Further complexity emerged over the weekend with the announcement of an additional 10 per cent tariff on countries aligning with certain BRICS policies, a move seen as further targeting the Global South.
To compound the trade disruption, G7 countries are projected to slash development aid by 28 per cent in 2025—the steepest cut since the bloc's founding. 'A perfect storm is brewing,' Coke-Hamilton warned, 'just as trade becomes more unpredictable, external support through aid is also shrinking'.
However, she outlined three strategies for developing nations to regain stability: investing in regional value chains—such as through the African Continental Free Trade Area (AfCFTA); focusing on value-added manufacturing to reduce commodity dependence; and elevating the small business agenda, which will be central to the Global SME Ministerial Meeting in Johannesburg on July 22-24.
'The path forward for developing economies lies in cooperation, innovation, and a renewed focus on inclusive trade,' she concluded.
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The Hindu
38 minutes ago
- The Hindu
SCO must have an ‘uncompromising position' on terrorism, Jaishankar tells Foreign Ministers
The Pahalgam terrorist attack of April 22 was carried out to hurt the Jammu and Kashmir economy and to 'sow a religious divide', External Affairs Minister S. Jaishankar told the Shanghai Cooperation Organisation's (SCO) Council of Foreign Ministers (SCO-CFM) meeting in China, where other SCO Ministers — including Pakistan's Deputy Prime Minister and Foreign Minister Ishaq Dar — were present, and called for support to bring the perpetrators to justice. On Tuesday (July 15, 2025), Mr. Jaishankar and the other SCO Ministers from Russia, Iran, Belarus and Central Asian states called on Chinese President Xi Jinping in Beijing on Tuesday (July 15, 2025) before proceeding to the SCO meeting in Tianjin by train. The External Affairs Minister also held bilateral talks with Russian Foreign Minister Sergey Lavrov and Iranian Foreign Minister Abbas Araghchi, both of whom he met earlier this month at the BRICS summit in Brazil. Mr. Jaishankar's comments came a month after the SCO Defence Ministers' meeting failed to issue a joint statement following differences over the references to terrorism. While no statement was issued after the SCO Foreign Ministers' meeting as well, officials said it was not the practice to do so, as the Foreign Ministers were normally tasked with finalising the agenda for the Summit of leaders on August 31-September 1. Prime Minister Narendra Modi is expected to travel to Tianjin for the summit, which would be his first such visit since the Galwan clashes in 2020. 'The three evils that SCO was founded to combat were terrorism, separatism and extremism,' Mr. Jaishankar said during his speech at the meeting, where he referred to the Pahalgam terror attack in which 26 men, mostly tourists, were religiously identified and killed. 'It was deliberately conducted to undermine the tourism economy of Jammu and Kashmir, while sowing a religious divide', he added, calling for the SCO to take an 'uncompromising position' on the challenge of terrorism, and referring to the UN Security Council resolution issued in April about the attack. Mr. Jaishankar's meeting with Mr. Xi came a day after he held bilateral talks in Beijing with Chinese Foreign Minister Wang Yi and called on Chinese Vice President Han Zheng, where he hailed the 'continued normalisation' of India-China relations. The Minister said that he had apprised President Xi of recent developments in bilateral relations. 'I value the guidance of our leaders in that regard', he posted on X, referring to Mr. Modi and Mr. Xi. Chinese state media reported that Mr. Xi had told SCO Ministers that the organisation must play a 'more proactive role' to ensure stability in a 'turbulent and changing international landscape'. Most SCO countries, especially China and India, would be affected if U.S. President Donald Trump goes ahead with a planned law imposing 500% tariffs on countries importing Russian oil and sanctioned products. In his comments during the SCO-CFM, Pakistan Foreign Minister Mr. Dar did not refer to the issue of terrorism. In a post on social media, Mr. Dar said that he 'underscored the importance of upholding international law and implementing relevant UNSC resolutions to resolve longstanding disputes', at the meeting and that Pakistan sought peace with 'all its neighbours'. Referring to Afghanistan, which is an SCO observer state but has not been invited since 2021 when the Taliban regime took control of Kabul, Mr. Jaishankar said that the 'compulsions of regional stability are buttressed by [India's] longstanding concern for the well-being of the Afghan people' and called for SCO members to increase development assistance. Taking a swipe at Pakistan for closing transit for India-Afghanistan trade, Mr. Jaishankar said that the 'lack of assured transit within the SCO space…undermines the seriousness of advocating cooperation in economic areas', and advocated for the International North South Transport Corridor (INSTC) that runs through Iran.
Time of India
an hour ago
- Time of India
BRICS emerges as a strong geopolitical and geoeconomic entity
S D Pradhan has served as chairman of India's Joint Intelligence Committee. He has also been the country's deputy national security adviser. He was chairman of the Task Force on Intelligence Mechanism (2008-2010), which was constituted to review the functioning of the intelligence agencies. He has taught at the departments of defence studies and history at the Punjabi University, Patiala. He was also a visiting professor at the University of Illinois, US, in the department of arms control and disarmament studies. The ministry of defence had utilized his services for the preparation of official accounts of the 1971 war and the counterinsurgency operations in the northeast. In the JIC/National Security Council secretariat, he was closely involved with the preparation of the reports of the Kargil Review Committee and the Group of Ministers on national security as also with the implementation of their recommendations. His publications include two books and several articles. LESS ... MORE The recent Joint Declaration of BRICS marks a pivotal moment in the group's evolution from a coalition of emerging economies to a significant geopolitical and geoeconomic force. With the expansion to include five new members and eleven partner countries, BRICS now represents nearly half the world's population and accounts for 40% of global economic output. This transformation not only signals its growing clout but also underscores its intent to reshape the global order in favour of the Global South. Entitled 'Strengthening Global South Cooperation for More Inclusive and Sustainable Governance,' the declaration emphasised BRICS's commitment to multilateralism, international law, and equitable global governance. It reflects a growing confidence and a clear pushback against Western dominance in global institutions. Once perceived as a non-Western alliance, BRICS is now positioning itself as the voice of emerging markets and developing countries (EMDCs), firmly rooted in the priorities of the Global South. PM Modi has aptly called for redefining the acronym BRICS so as not to indicate the initials of the five core members but to convey a shared functional purpose of 'Building Resilience and Innovation for Cooperation and Sustainability.' This captures the group's evolving identity. A significant aspect of the Joint Declaration was its open criticism of indiscriminate use of tariffs and proliferation of trade-restrictive actions- moves largely attributed to Western economic policies. It also condemned the attack on Iran and called for a two-state solution to the Israel-Palestinian conflict, but did not follow the Iranian line on Israel. This assertiveness reflects BRICS's increasing willingness to challenge the status quo, advocating for a fairer and more inclusive trade system. Its call for reform of global financial institutions like the World Bank and the IMF, long seen as instruments of the West, further illustrates this shift. The group's stress on multilateralism and international law was aimed at ensuring increased participation of the Global South in global decision-making processes and structures. It perceives 'the Global South as a driver of positive change.' It called for strengthening efforts to promote dialogue and consultations in pursuit of more just and equitable global governance, and of mutually beneficial relations among nations. On climate change, the group stressed that developed countries must step up with more grant-based, concessional finance, separate from existing aid, to help developing nations meet their climate goals without sacrificing poverty reduction and development priorities. The declaration covered the need for reforming the international financial architecture and stressed to enhance cooperation on all pillars of the United Nations Framework Convention on Climate Change (UNFCCC). This stance rightly insists that climate responsibilities must not come at the expense of development and poverty alleviation. It is a reminder that climate justice and equity are inseparable. On terrorism, the Joint Declaration expressed 'strong condemnation of any acts of terrorism as criminal and unjustifiable, regardless of their motivation, whenever, wherever and by whomsoever committed.' It condemned in the strongest terms the terrorist attack in Jammu and Kashmir on 22 April 2025, during which 26 people were killed and many more injured, while reaffirming its commitment to combating terrorism in all its forms and manifestations, including the cross-border movement of terrorists, terrorism financing and safe havens- a notable move for a diverse group with differing views on counterterrorism. Prime Minister Modi's strong remarks, indirectly aimed at Pakistan and China, highlighted the need for action against cross-border terrorism and the obstruction of sanctions against listed terrorists. While BRICS avoided the logjam on countering terrorism, unlike what happened at the Shanghai Cooperation Organisation (SCO), China's reluctance to support this issue would remain problematic. Diplomatically, the summit showcased BRICS's ability to bridge internal divides and issue a coherent and unified statement, no small feat for a grouping with such varying national interests. Its handling of the Israel-Palestine issue, calling for a two-state solution while not aligning completely with Iran, exemplifies the group's growing maturity in international diplomacy. In sum, the 17th Summit of BRICS indicates its transformation into a strong platform for the Global South. Its expansion has strengthened its legitimacy, and its assertive tone on global economic and political issues reflects a newfound confidence. If it can manage its differences, particularly on terrorism, it is poised to emerge as a credible counterweight to the West-led global governance system. The road ahead will be complex and difficult, but the message from Brazil is unmistakable: BRICS is no longer just watching from the sidelines. It is going to play an important role in managing global affairs. Facebook Twitter Linkedin Email Disclaimer Views expressed above are the author's own.
Indian Express
3 hours ago
- Indian Express
How India-Africa energy partnership offers model for South-South cooperation
— Samir Bhattacharya Energy security emerged as one of the central themes of engagement during Prime Minister Narendra Modi's recent visit to two strategically important African countries (Ghana and Namibia), which also underscores the significance of burgeoning India-Africa ties. As India seeks to ensure stable and diversified energy sources for its growing economy, Africa's abundant yet largely untapped energy resources present a valuable opportunity for India. In turn, Indian investments and technology can play a pivotal role in supporting Africa in leapfrogging the energy ladder. A strong partnership with India will also help Africa to achieve its much elusive energy security. The abundance of Africa's rich mineral resources is reflected in the fact that the continent accounts for 3.6 per cent of coal reserves, 7.5 per cent of natural gas reserves, and 7.6 per cent of oil reserves globally. The continent also possesses nearly two-thirds of the world's critical minerals, such as platinum, cobalt, copper, lithium, etc, underscoring its importance in the global energy transition. For example, South Africa produces 70 per cent of the world's platinum, a key component in hydrogen fuel cell manufacturing. Similarly, the Democratic Republic of the Congo produces two-thirds of the world's cobalt, a critical ingredient in battery production. Demand for these minerals is projected to rise significantly, putting Africa at the centre of the global energy transition map. Recognising the strategic significance of Africa's energy resources, India has, over the years, undertaken substantial investments in the continent's energy sector. Two Public sector entities, ONGC Videsh Ltd. and Oil India Ltd., have been instrumental in securing equity stakes in oil and natural gas assets across Africa. As a result of this growing engagement, bilateral trade between India and Africa reached USD 100 billion in 2022, with the energy sector constituting a substantial portion of this trade. Furthermore, India's cumulative investments in Africa amount to USD 75 billion, which is projected to double to USD 150 billion by 2030 and is again dominated by the energy industry. Although India's energy trade with major producers such as Angola and Nigeria has grown, the commensurate investments in upstream and downstream energy infrastructure remain limited. Exploring the prospects of larger equity investments, joint ventures and technology transfer partnerships across Africa will help address this gap. Furthermore, given India's demonstrated strengths in refining, consulting, training, and infrastructure development, India is well-positioned to help Africa in moving up the energy value chain. Beyond oil and gas, nuclear energy offers another critical avenue for enhanced cooperation between India and Africa. Given its limited uranium reserves, the share of nuclear energy in India's energy mix is negligible. India relies heavily on uranium imports to meet its nuclear energy demands. Several African countries, such as Namibia, South Africa, Niger, Nigeria, and Malawi, possess abundant but largely untapped uranium reserves. Notably, Niger (7 per cent), Namibia (6 per cent) and South Africa (5 per cent) together contribute 18 per cent to the world's uranium deposits. These reserves could be vital in expanding India's nuclear power capacity. As India has obtained a waiver from the Nuclear Suppliers Group (NSG), uranium trade is expected to be hassle-free. At the same time, the continent can benefit from India's technological know-how to develop its nascent civil nuclear energy programmes. While Africa is indispensable in India's energy security, India could also play a key role in facilitating Africa's energy development. Despite its vast natural resources, energy poverty remains a persistent challenge in Africa, stifling its socioeconomic progress. Currently, over 600 million Africans lack access to electricity. If existing trends don't improve, approximately 530 million Africans will be without access to power by 2030. Although Africa accounts for 16 per cent of the world's population, it consumes only 3.3 per cent of global energy, highlighting a stark disparity. However, Africa can reverse the trend and become the first continent to develop its economy, primarily through modern energy sources, if correct actions are taken. Nonetheless, achieving this vision will require fully harnessing the continent's vast solar, wind, hydropower, natural gas, and energy efficiency potential. While natural gas will remain significant in meeting Africa's industrial and electricity needs, it is high time to focus on clean energy solutions, especially in view of the continent's disproportionate vulnerability to climate change. India can play a significant role in this transformative journey, offering affordable solutions that are easy to scale and, most importantly, sustainable. As India is uniquely positioned to support Africa's energy transformation, the two sides have already begun deepening their collaboration in renewable energy, particularly in the solar sector. March 2018 marks a watershed moment in this cooperation when India, with the support of France, established the International Solar Alliance (ISA). Within seven years of its inception, the ISA has grown into a strong multilateral platform with 120 signatory members, including 46 African countries. During the third India-Africa Forum Summit in 2015, India committed $2 billion Line of Credit (LoC) to support solar projects across Africa. India also prioritised the training of solar engineers from Africa through the Indian Technical and Economic Cooperation (ITEC) programme. Another important dimension of India's energy cooperation with Africa lies in its emphasis on grassroots innovation. In this context, The Energy and Resources Institute (TERI) and Barefoot College have played a pivotal role. While TERI conducts ITEC-sponsored courses on issues like sustainable development, climate change and sustainability, renewable energy, and energy efficiency, Barefoot College provides training to rural African women to become solar engineers. Seen as one of the most inspiring examples of India's grassroots innovation for Africa, these women carry out solar installations in their villages and conduct routine maintenance and repairs. More such grassroots initiatives, using similar inclusive and sustainable approaches, would be a step in the right direction. To sum up, as global attention intensifies on decarbonisation and energy transition, there is an urgent need to strengthen India-Africa energy ties further. Both India and Africa have ambitious goals in their respective energy sectors. Moreover, India's technological know-how in solar, wind, and hydro, if combined with Africa's untapped potential, can present a unique opportunity, powering each other's progress, moving beyond the exchange of resources. As India and Africa are simultaneously pursuing inclusive economic development and climate resilience, their energy partnership holds the potential to serve as a robust model of South-South cooperation. Why is Africa important to India's energy security, and how can India support Africa's energy development in return? In what ways can India's experience with solar and other renewable technologies benefit Africa's energy transition? India is uniquely positioned to support Africa's energy transformation by offering affordable solutions that are easy to scale and, most importantly, sustainable. Comment. How might increased nuclear cooperation reshape the India-Africa energy partnership in the coming years? How can India-Africa energy cooperation serve as a model for South-South cooperation? (Samir Bhattacharya is an Associate Fellow at the Observer Research Foundation.) Read other articles from the series Conflicts in Africa Conflicts in Africa | The Sahel crisis and implications for India Conflicts in Africa | India's growing role in Africa's development Conflicts in Africa | Rising tensions in the Great Lakes Region Conflicts in Africa | Instability in Great Lakes region and implications for India Conflicts in Africa | Sahel's strategic drift towards Russia Share your thoughts and ideas on UPSC Special articles with Subscribe to our UPSC newsletter and stay updated with the news cues from the past week.
