Brasilia/New Delhi: A day after United States imposed additional 25% tariff on imports from India, bringing it at par with Brazil, a leading scholar reflected on its likely impact on global economic order and how the two nations – members of BRICs can come togther to cushion the impact.
In an exclusive conversation with IANS, Emilio Diaz, researcher from the University of Sao Paulo offered deep insights into the consequences of 50% tariffs, imposed by Trump administration on both nation and the two developing nations could come together to build new partnerships and give strength to respective economies by diversifying trade partnership.
This assumes significance in light of the fact that Brazilian President dialed Prime Minister Narendra Modi on Thursday, seeking to enhance ties in trade, technology, energy, defence and agriculture. He has also spoken about the need for BRICS nations to formulate a joint response to Trump’s tariff tirade.
Below is the full Interview:
IANS: Trump has imposed 50 per cent tariffs on India and Brazil. How will it impact the respective economies and world in general?
Emilio Diaz, Researcher, Sao Paulo University: I believe that the impact is little hard to estimate. I think that we can see some drop in GDP numbers mainly because of exports initially, but I feel that if the situation continues as it is with all the threat and after the position of tariff, I believe that we are having a lack of confidence in the American market as well as in other countries. This can have a further impact for our economies.
IANS: Should countries like India and Brazil aggressively now form a new economic world order, especially because the US has been acting unruly with tariffs?
Emilio Diaz: I believe that we are having a new world order in economy because United States is no longer the only powerful economy and this is the reason why they are doing all this.
I believe that we should, essentially, continue to do what we are doing but we don’t need to be aggressive. We can make partnerships, we can diversify the partners, intensify the economies among the BRICS countries as a whole.
We can deal with the United States as we are already doing, trying to negotiate, but not resisting also when it comes to sensible features of our countries because in Brazil for example, what they requested is to deliver to them, the independence of their republican power. This is not trade. This is interference in a sovereign country.
IANS: Indian PM and Brazilian President spoke to each other amidst all the tariff issues and showed support to each other. How do you look at it?
Emilio Diaz: I don’t believe that the countries right now are interested in having a direct confrontation, but I believe that we are already doing that in an indirect way. We have some manifestations already in Europe that this is not acceptable. We also have popular, public opinion on all countries because we are extremely connected nowadays.
IANS: India has categorically said that it will not give in before US pressure. How do you rate India’s response to the US?
Emilio Diaz: I’m not sure if the conditions were so clear in this sense. I feel that there is a difference in both cases. In case of India, this is not the first time that the United States threatened to impose tariffs.
IANS: Will India, Brazil and like-minded countries develop new markets for their products?
Emilio Diaz: Yes, this looks the likely way out.
(IANS)
