Commerce Secretary Discusses Trade with Russian and UAE Ministers

Commerce Secretary Engages with Russian and UAE Ministers on Trade Issues

New Delhi: Commerce Secretary Sunil Barthwal engaged in crucial bilateral discussions with Russian and UAE officials to address and resolve various trade issues, reflecting India’s strategic efforts to enhance trade relations with these nations. These high-level meetings took place on the sidelines of the 14th BRICS (Brazil, Russia, India, China, and South Africa) Trade Ministers’ meeting, held in Moscow on July 26, 2024.

Barthwal’s meetings included key Russian figures such as Maxim Reshetnikov, the Russian Minister for Economic Development; Andrey Slepnev, Member of the Board (Minister) of Trade at the Eurasian Economic Commission; Alexey Gruzdev, Russia’s Deputy Minister of Industry and Trade; and Sergei Dankvert, Head of the Federal Service for Veterinary and Phytosanitary Supervision (FSVPS). Additionally, Barthwal met with Zuko Godlimpi, Deputy Minister of South Africa’s Department of Trade, Industry and Competition, and Thani Bin Ahmed Al Zeyoudi, the UAE Minister of State for Foreign Trade.

The primary aim of these bilateral meetings was to address trade concerns and expedite their resolution. This is particularly significant as India and Russia aim to increase their bilateral trade to USD 100 billion by 2030. Currently, trade between the two nations stands at around USD 67 billion. India is focusing on several strategies to boost its exports to Russia, including addressing non-trade barriers in sectors such as shrimp and pharmaceuticals, especially in the context of ongoing sanctions and geopolitical tensions.

Since the onset of the Ukraine conflict in February 2022 and the subsequent US sanctions on Russia, the trade relationship between India and Russia has undergone a significant transformation. There has been a notable increase in imports from Russia, resulting in a substantial trade imbalance. For example, India’s imports from Russia surged drastically, primarily driven by crude oil, reaching USD 61.4 billion in 2023-24. This has led to a dramatic rise in the trade deficit, from USD 2.8 billion before the conflict to USD 57.2 billion currently, according to a report by the think tank GTRI. India’s exports to Russia encompass a wide range of products, including smartphones, shrimp, medicines, meat, tiles, coffee, aircraft parts, chemicals, computers, and fruits.

During the BRICS trade ministers’ meeting, Barthwal advocated for reinforcing the multilateral trading system, with the World Trade Organization (WTO) at its core. He stressed the need for effective functioning of joint value chains and expanding interactions among micro, small, and medium enterprises (MSMEs). Barthwal also highlighted the urgency of WTO reforms to address long-standing issues and enhance the organization’s responsiveness to the development needs of emerging economies. He proposed implementing at least 30 operational improvements to the WTO before its 30th anniversary in 2025.

In addition, Barthwal expressed concerns about climate-related unilateral measures impacting trade, noting that such measures undermine multilateral environmental agreements and disregard principles such as Common But Differentiated Responsibilities (CBDR). He emphasized the importance of international cooperation to ensure affordable access to emerging technologies crucial for green transition and climate resilience.

For MSMEs, Barthwal underscored the need for cooperation in research and development, technology transfers, joint ventures, and business development opportunities. He also highlighted India’s willingness to share its experiences with BRICS countries in areas such as e-payments, e-commerce, national identity systems, banking, and education. This collaborative approach aims to foster economic growth and development across the BRICS nations and beyond.