Jaishankar says 'Countries Use Tariffs, Sanctions; It is A Reality'
Extract
from the article:
In a realistic appraisal of international trade and diplomatic strategies,
External Affairs Minister (EAM) S. Jaishankar underscored the entrenched use of
tariffs and sanctions as unavoidable tools by nations to safeguard their
geopolitical and economic interests. He acknowledged that in today’s complex
globalized environment, these measures, though sometimes contentious, have
become normative levers deployed by countries to negotiate power dynamics,
protect domestic industries, and respond to foreign policy challenges.
Jaishankar’s comments reflect a pragmatic acceptance of these economic
instruments as realities, not aberrations, within the rules-based global order.
He also highlighted the nuanced interplay between diplomatic
relationships and economic policies, suggesting that while tariffs and
sanctions serve immediate tactical goals, they simultaneously influence
long-term strategic alliances and global perceptions. This candid recognition
by an influential policymaker puts forth an important narrative: sovereignty
and competitive advantage drive countries’ trade decisions as much as, if not
more than, idealistic free-trade principles. Importantly, Jaishankar’s remarks
invite policymakers and stakeholders to adapt to, rather than resist, these
shifting realities in crafting India’s foreign and economic policies.
My
Take:
A. IT
IS : SURVIVAL OF THE FITTEST
Reflecting back to my 2018 piece titled IT IS : SURVIVAL OF THE FITTEST,
I had already prophesied the inevitability of such trade frictions encapsulated
in Jaishankar’s recent statements. I wrote, “Indian exports are uncompetitive
and high-cost thanks to...land made expensive by acquisition laws, interest
rates made high by populist schemes... freight rates kept high to subsidise
passengers.” These entrenched domestic inefficiencies predispose India to
suffer in a global arena increasingly weaponized by tariffs and sanctions.
Jaishankar’s acceptance of these realities aligns impeccably with my earlier
contention that only through structural reform and competitive resilience can
India transcend reactive posturing to become a formidable player.
In that writing, I also emphasized the necessity for India
to “accept that subsidies are not the way to promote exports,” a crucial
insight that harmonizes with the minister’s pragmatic tone. Countries that
cling to wishful free-trade ideals deny the strategic calculus underpinning
these protectionist measures. Thus, Jaishankar’s articulation is not merely
diplomatic candor but an endorsement of survival tactics I envisioned years
ago—a clarion call for policymakers to adapt rather than lament the ‘new normal’
in international trade.
B. When
will we learn ?
In my 2016 post When will we learn ?, I highlighted the recurring
phenomena of countries enforcing protective tariffs and quotas—strategies
reminiscent of what Jaishankar now openly describes as “a reality.” Back then,
I discussed how India’s calls for balanced trade often clash with broader
global tendencies toward protectionism, noting that “Most countries levy ‘Anti
Dumping Duties’ or even ‘Quantitative Import Quotas’...to protect local
industries.” The cyclical nature of trade wars and retaliatory tariffs, which
Jaishankar acknowledges today, had ignited my reflection on the imperative for
India to craft resilient trade policies operative under such perpetual
uncertainty.
Further, I had spotlighted the paradox of inviting foreign
investments amidst trade boycotts, an embodiment of the convoluted landscape
Jaishankar frames: a landscape where economic and diplomatic behavior intersect
in multifaceted ways. His acceptance that tariffs and sanctions are tools in a
geopolitical chess game validates the depth of complexity I sought to expose,
underscoring how India must reconcile strategic diplomacy with rigid trade
realities to avoid self-inflicted vulnerabilities.
C. Hiding
in Plain Sight ?
In Hiding in Plain Sight ?, I remarked on India’s acute economic
vulnerability due to dependency on crude oil imports amidst volatile global
markets. This dependency is a glaring example of how sanctions, tariffs, and
economic coercion by exporting countries can precipitate crises—a concept
tangential but fundamentally linked to Jaishankar’s insights. My call for
import substitutes such as ethanol, methanol, and advanced transport systems
complements the minister’s pragmatic recognition of economic leverage as a
geopolitical asset.
Jaishankar’s commentary invites India to heed these
multilayered dependencies embedded in global trade and sanctions—dependencies I
previously flagged as latent crises. By spotlighting the need for strategic
self-reliance and innovation, my earlier insights resonate deeply with the
updated narrative of realpolitik trade measures. Together, they reaffirm that
India’s path forward must be armored with economic diversification and a keen
appreciation of how sanctions and tariffs are wielded in international power
equations.
Call
to Action:
To the esteemed policymakers and economic strategists within India’s Ministry
of External Affairs and Commerce: it is imperative now, more than ever, to
craft nuanced trade and diplomatic policies that embrace these ‘realities’
delineated by EAM Jaishankar. Recognize tariffs and sanctions not as
aberrations but as strategic instruments embedded in global commerce.
Proactively fortify India’s economic architecture by expediting reforms that
enhance export competitiveness, reducing structural cost burdens, and
aggressively pursuing import substitutions—especially in critical sectors like
energy and manufacturing.
Simultaneously, harness diplomatic acumen to balance
retaliation and engagement, fostering strategic alliances that mitigate the
adverse impacts of protectionist drifts. The clarion call is clear: innovation
in policy formulation, stalwart domestic reforms, and dynamic international
diplomacy must intertwine seamlessly to navigate and shape the tectonic shifts
in political nomination and economic power plays.
With regards,
No comments:
Post a Comment