SCO joint communique: member states say important to counter protectionist policies, sanctions

The Shanghai Cooperation Organisation (SCO), a Eurasian security and political group, on Wednesday said it considered important to “continue joint efforts to counter protectionist trade measures that are contrary to WTO rules and regulations”.

A joint communique was shared by Pakistan’s Ministry of Foreign Affairs as the 23rd Meeting of the Council of Heads of Government of Member States of the SCO concluded in Islamabad on Wednesday. It was signed by 10 countries, including China, Russia, Iran, India and host Pakistan.

“The Heads of Delegation consider it important to continue joint efforts to counter protectionist trade measures that are contrary to WTO [World Trade Organisation] rules and regulations, as well as to continue working on strengthening the rules-based WTO, non-discriminatory, open, equitable, inclusive and transparent multilateral trading system, based on the WTO,” the joint statement read.

They also opposed “protectionist actions, unilateral sanctions and trade restrictions” that undermine the multilateral trading system and impede global sustainable development.

The Heads of Delegation emphasised that the unilateral application of sanctions is incompatible with the principles of international law and has a negative impact on third countries and international economic relations.

The United States and Canada have increased tariffs on Chinese products such as electric vehicles, aluminium and steel, and the European Union is set to follow suit. Beijing has termed the moves discriminatory, and responded with similar actions as the standoff intensifies.

Russia and Iran, both members of the SCO, face sanctions from the West. Both possess some of the world’s largest energy resources.

Sanctions have meant that smaller countries have shied away from trade with the two, even as larger more influential economies, such as China and India, continue to purchase energy from them.

Energy-starved Pakistan does not import gas or fuel from neighbouring Iran despite its cost-effectiveness, and a gas pipeline between the two has stalled due to Islamabad fearing US sanctions.

According to the joint statement, the Heads of Delegation reaffirmed the intention of the member states to promote the proposal for the adoption of a resolution by the UN General Assembly in connection with the SCO Initiative “On World Unity for a Just Peace, Harmony and Development”.

Taking into account the views of the member states, they confirmed the relevance of initiatives to promote interaction in building a new type of international relations in the spirit of mutual respect, justice, equality and mutually beneficial cooperation, as well as the formation of a common vision of the idea of creating a community of common destiny of mankind and the development of dialogue on the idea of “One Earth. One Family. One Future”.

The Heads of Delegation noted the tectonic shifts in the global economy, characterised by rapid advancements and interconnectivity in the areas of information technology, digitalisation, artificial intelligence, virtual/digital assets, e-commerce, etc.

The Heads of Delegation expressed concern over the exacerbation of various challenges that have led to reduced investment flows, disrupted supply chains and uncertainty in global financial markets as a result of protectionist measures and other impediments to international trade.

They noted the proposal to create a Greater Eurasian Partnership with the participation of the SCO, Eurasian Economic Union, Association of Southeast Asian Nations, as well as other interested states and multilateral associations.

Noting the presence of significant potential and opportunities for further building up trade and economic ties, they stressed the importance of implementing the concept of cooperation in the development of the “New Economic Dialogue” between the SCO member states.

The Heads of Delegations stressed the importance of deepening cooperation in the field of information security, the relevance of the “digital divide” issue and advocated for exploring the creation of a mechanism for cross-border data exchange, taking into account the national legislations of countries, the introduction of digital technologies in the economic and social spheres, the development of e-government, electronic payment systems, e-commerce and other areas of digital business.

The heads of delegations noted that the development of micro, small and medium-sized enterprises is important to stimulate economic growth and create jobs. In this regard, they emphasised the need to continue practical interaction under the memorandum of understanding on Promoting SCO Cooperation in Micro, Small and Medium Enterprises (Qingdao, June 10, 2018).

The Heads of Delegation highlighted proposals for the establishment of an independent settlement-clearing mechanism, as well as for the convergence of payment systems by interested member states.

They confirmed that the member states, sharing the international community’s desire to strengthen interconnectivity, welcome initiatives of the SCO countries in the transport sphere aimed at developing mutually beneficial cooperation on a fair and balanced basis in accordance with international law, the goals and principles of the UN Charter and the SCO Charter.

They instructed relevant ministries and departments to take measures to implement previously adopted conceptual documents in the areas of decarbonisation of transport, digital transformation and innovative technologies, and development of ports and logistics centres, the statement read.

‘Expand BRI’

Earlier at the meeting, Pakistan’s Prime Minister Shehbaz Sharif called for the expansion of China’s Belt and Road Initiative (BRI).

“Flagship projects like the Belt and Road Initiative of President Xi Jinping … should be expanded focusing on developing road, rail and digital infrastructure that enhances integration and cooperation across our region,” Sharif said in his speech as the chair of the meeting.

‘BRI becomes world’s broadest-based, largest platform for international cooperation’

The BRI is a $1 trillion plan for global infrastructure and energy networks that China launched a decade ago to connect Asia with Africa and Europe through land and maritime routes.

More than 150 countries, including Russia, have signed up to participate in it.

Beijing’s rivals see the BRI as a tool for China to spread its geopolitical and economic influence.

Western countries, under the G7 platform, last year announced a $600 billion rival connectivity infrastructure development plan.

The China-Pakistan Economic Corridor (CPEC) is a part of the BRI and has seen Beijing pump in billions of dollars into the South Asian country for road networks, a strategic port and an airport.