SME Times News Bureau | 13 Nov, 2019
Union Minister of Commerce and Industry Piyush Goyal
expressed concern over growing protectionism in global trade that has resulted
denial of market access particularly to micro, small and medium enterprises
(MSMEs) from developing countries.
Speaking in the BRICS Trade Ministers meeting held in
Brasilia, Brazil, Goyal said that the 50 million MSMEs create over 100 million
jobs and contribute 40 percent to India’s exports. It is the backbone of Indian
economy but the increasing trends of protectionism in the form of Non-Tariff
Barriers (NTBs) are denying market access to these enterprises particularly
from the developing countries.
Developed countries advocate open and free trade with
emphasis on removal of tariffs in developing countries but they themselves are
raising more barriers in the form of NTBs that are leading to economic
uncertainties and raising the cost of doing trade in developing and Least
Developed Countries (LDCs) said the Minister.
In his speech, the minister said that India places great
importance on its engagement with BRICS as it brings stability and balance to
an uncertain world.
The global economy is facing grave challenges due to
growing protectionism and trade tensions due to unilateral measures, said the
Minister.
He further stated that in this uncertainty India continues to offer economic
opportunities with reduced corporate taxes that are the most competitive in the
world, liberalised rules for Foreign Direct Investment and revitalisation of
sectors like real estate and the micro and small enterprises.
Commerce and Industry Minister in his address, urged the
BRICS countries to develop digital infrastructure, skills and institutions with
special focus on the developing countries and LDCs while highlighting the
adverse impact of predatory pricing that is practised by some e-commerce
players that adversely affects millions of small retailers.
He reiterated that e- commerce players must follow the
letter and spirit of the law of the country. In his address the Commerce and
Industry Minister also spoke about the need to ensure that the WTO reform
process does not dilute the basic principles like Special and Differential
Treatment to developing countries and consensus-based decision making.
He urged the BRICS countries to collectively take the
lead in shaping the narrative on reforms within the WTO in order to enhance its
relevance and effectiveness in the contemporary technological and trade
environment.
Goyal in his closing remarks at the Trade and Industry
Minister’s meeting said that the Memorandum of Understanding (MoU) amongst
BRICS Trade and Investment Promotion Agencies signed at this meeting provides a
framework for forging collaboration between countries and facilitating greater
trade amongst BRICS member countries.
He expressed his confidence that the MoU will further
promote trade and market studies and will narrow gaps in trade facilitation
measures in BRICS countries.
Goyal urged all BRICS member countries to maintain the
momentum in all the areas agreed upon during the Brazilian Presidency
especially cooperation initiatives in MSMEs, Intellectual Property Rights, e-
commerce, technical regulations, investment facilitation and trade and
investment promotion as cooperation through these frameworks will encourage
value added outcomes for stakeholders.