BRICS New Delhi Declaration: Bloc Challenges Sanctions and Carbon Taxes
New Delhi: The 18th BRICS Summit concluded in New Delhi on Saturday with a powerful show of unity among the 21-member bloc. In a definitive New Delhi Declaration, the coalition of nations issued a stern rebuke against the rise of unilateral coercive economic measures and discriminatory trade practices, signaling a major push toward financial autonomy and a rejection of Western-led protectionism.
Confronting Unilateral Sanctions and Tariffs
The summit, hosted by Prime Minister Narendra Modi, saw leaders express deep concern over the weaponization of the global financial system. Without explicitly naming the United States or the European Union, the declaration unequivocally condemned the use of “economic and secondary sanctions” that violate international law and the UN Charter.
The bloc highlighted how such measures disrupt global supply chains and threaten the development prospects of emerging economies. Russian President Vladimir Putin, attending the summit, underscored the severity of the situation, noting that Russia alone has been subjected to over 30,000 individual sanctions. The declaration warned that these actions disproportionately impact the most vulnerable populations, hindering global food and health security.
A key point of contention addressed by the leaders was the European Union’s Carbon Border Adjustment Mechanism (CBAM). The bloc criticized this policy as “protectionism under the guise of environmental objectives.” By imposing levies on carbon-intensive imports like cement, steel, and chemicals, developed nations risk pushing developing-country exporters out of the market with additional duties of up to 35%. The summit participants argued that such trade-restrictive actions, combined with the indiscriminate raising of tariffs, are fundamentally inconsistent with World Trade Organization (WTO) rules.
The Push for Local Currency Settlement
Amid ongoing geopolitical friction, the BRICS nations have accelerated their search for practical alternatives to dollar-dependent trade. The New Delhi Declaration reaffirmed the bloc’s commitment to the BRICS Payment Task Force (BPTF), tasking the body with developing secure, efficient, and low-cost cross-border payment mechanisms.
The goal is to foster trade settlements and investments using local currencies. By championing this shift, member states—which now include 11 full members and 10 partner nations—hope to insulate their economies from the volatility of foreign policy mandates imposed by Western powers. This financial pivot comes despite repeated threats of punitive tariffs from Washington, which has previously warned of severe economic consequences for countries attempting to bypass the US dollar.
Strengthening the Strategic Partnership
The summit underscored the bloc’s expansion and its vision for a “closer economic partnership.” The leaders emphasized that the “Strategy for BRICS Economic Partnership” remains the cornerstone of their collective cooperation. As the alliance grows to include diverse economies—ranging from Brazil and China to Ethiopia and Thailand—the focus remains on creating a resilient framework that respects national sovereignty.
Experts observing the summit noted that the New Delhi Declaration marks a shift from mere diplomatic dialogue to active economic defense. By rejecting “one-size-fits-all” governance, the bloc is positioning itself as a legitimate alternative to traditional Western-dominated institutions, offering developing nations a path to growth that is less susceptible to the geopolitical whims of the Global North.
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