'No winners' in trade and tariff wars, Shanghai Co-operation Organisation chief says

The National

07-07-2025

Trade and tariff wars will not deliver victory for anyone involved and it is best world powers avoid confrontation, economic pressure and blackmail, the head of Shanghai Co-operation Organisation (SCO) said.
'There are no winners in tariff or trade wars,' Nurlan Yermekbayev, secretary general of the SCO, the biggest intergovernmental organisation in Eurasia, told The National in an interview.
'We do not support actions that are hostile towards states and regions, and we call for the abandonment of confrontation, mutual threats, blackmail and the use of methods of pressure, including economic.'
Mr Yermekbayev's remarks come after the imposition of tariffs between China and the US that is threatening to dent global economic growth. The trade levies US President Donald Trump plans to impose on global trade partners are at a 100-year high and will disrupt global trade if enforced.
The US has delayed enforcing the tariffs until August 1, to allow time for trade deal talks. A previous 90-day negotiating window is due to end on Wednesday.
Semi-truce
The sweeping US tariffs, which were unveiled in early April, have already slowed the pace of economic growth, roiled financial markets and added to oil price volatility. Supply chains and businesses have suffered, bringing governments to the negotiating table with the world's biggest economy.
The main protagonists in the trade war are the US and China, but tensions have simmered from boiling point since they agreed to a surprise 90-day truce on May 12.
The pact was an attempt to sidestep the steep import tariffs that Mr Trump imposed on China, which threatened to stall the supply of critical components such as rare earth minerals. Beijing responded to high tariffs from Washington by threatening to impose its own tolls on materials essential to US industry.
Not much is known about the truce between the world's two largest economies, but if it does not hold, the possibility for strain, with huge financial consequences, are very real, analysts say.
Threat to other SCO members
Other SCO member states, including global economic powers such as India, could still be hit with high tariffs of up to 50 per cent if they cannot seal a trade deal with Washington by the August 1 deadline, when the higher rates are set to take effect.
We call for the abandonment of confrontation, mutual threats, blackmail, and the use of methods of pressure, including economic pressure
Nurlan Yermekbayev,
Shanghai Co-operation Organisation secretary general
'Of course, it is worrying that the lines of geopolitical divide are becoming more evident, creating barriers to global trade and, as a result, leading to the economic isolation of certain countries,' said Mr Yermekbayev, a former defence minister of Kazakhstan who took up his position at the helm of the SCO in January 2025.
The organisation is opposing 'confrontational approaches' and calling for 'dialogue and constructive co-operation', while working on simplifying trade procedures, and overcoming barriers and restrictions, he added.
Criticism on SCO
The SCO, founded in 2001 between China, Russia and four former Soviet republics, now comprises 10 member countries, including India, Pakistan and Iran. The world's largest regional organisation by geography and population, its members also command huge oil, gas and mineral resources.
With China and Russia leading the pack, the SCO has faced accusations from western analysts of pushing illiberal Chinese-led doctrine.
The body, however, says it is a proponent of a 'multipolar world order', and its stated aims are to promote regional peace and prosperity through co-operation in politics, economics and culture.
Mr Yermekbayev said SCO member states had not called on him to intervene on China's behalf to directly address the US with concerns over tariffs.
The organisation, in which decisions are made by consensus of member states' senior leaders, would only approach Washington on China's behalf if it is mandated by its members to do so.
'If there is an agreed decision by [SCO leaders] to authorise the secretary general to contact the administration of the US or another state outside the SCO community, then I am ready to do so,' he said.
Uniting factor
The SCO unites countries on key trading routes between East and West, and Mr Yermekbayev said increasing geopolitical confrontation, conflict and the 'systematic violation' of the norms of international law are a threat to global supply chains and stability.
The decades-old international trading system is now 'on the verge of fragmentation', he said.
China's Belt and Road Initiative, comprising large infrastructure projects, and the so-called Middle Corridor, which connects China to Europe through Kazakhstan and Turkey, have expanded in recent years. Trade along the latter has been boosted by firms looking for alternatives to heavily sanctioned Russia and Iran.
Attacks linked to the war in Gaza by Yemeni Houthi rebels on Red Sea trade routes have also prompted global firms and international shipping companies to look for alternative supply routes.
'The SCO uses the changes taking place in the world to develop closer co-operation and establish supply chains between its member states,' he said. 'More attractive conditions are being created for investments, exchanges between people, transport corridors and many other practical types of interaction designed to benefit the peoples of our countries.'
As well as member states, the organisation has 14 so-called dialogue partners, including six Arab nations – the UAE, Qatar, Kuwait, Saudi Arabia, Bahrain and Egypt.
The hope is that the countries continue to co-operate with the SCO in existing mechanisms, as well as in 'the initiation of new joint projects', Mr Yermekbayev said.
Overall, the SCO leadership is pushing for a permanent mechanism for financing project activities and better develop multilateral project co-operation, he added.
Iran's economic potential
On the other side of the Arabian Gulf, Iran has been a full member of the SCO since 2023 – a membership western analysts say Tehran had coveted to boost its international reputation.
While sanctions have kept many investors out of Iran, some SCO members already invest in the country's economy, Mr Yermekbayev said.
While talks between the US and Iran over Tehran's nuclear programme and lifting of sanctions faltered following attacks by Israel on June 13, the country still has economic potential, he added.
'Iran has every opportunity to increase the level of trade and economic ties, including in the field of investment, especially with the SCO member states,' he said.