SCO calls for countering protectionist policies, sanctions

ISLAMABAD: The 23rd meeting of the Council of Heads of Government of the Shanghai Cooperation Organization (SCO) Wednesday reaffirmed their commitment to a peaceful settlement of differences and disputes among the countries through dialogue and consultations.

In a joint communique, the heads of delegations noted that the member states advocate respect for the rights of peoples to independently and democratically choose their political, social and economic development, emphasizing that the principles of mutual respect for the sovereignty, independence, and territorial integrity of states, equality, mutual benefit, non-interference in internal affairs, non-use of force or threat of use of force are the basis for sustainable development of international relations.

The meeting, chaired by Prime Minister Shehbaz Sharif, was attended by Prime Minister of the Republic of Belarus R.A. Golovchenko, Minister of Foreign Affairs of the Republic of India S. Jaishankar, Minister of Industry, Mine and Trade of the Islamic Republic of Iran Seyed Mohammad Atabak, Prime Minister of the Republic of Kazakhstan O.A. Bektenov, Premier of the State Council of the People’s Republic of China Li Qiang, Chairman of the Cabinet of Ministers of the Kyrgyz Republic A.U. Zhaparov, Prime Minister of the Islamic Republic of Pakistan Muhammad Shehbaz Sharif, Chairman of the Government of the Russian Federation M.V. Mishustin, Prime Minister of the Republic of Tajikistan Kokhir Rasulzoda and Prime Minister of the Republic of Uzbekistan A.N. Aripov, Prime Minister of Mongolia L. Oyun-Erdene (SCO Observer State) and Deputy Chairman of the Cabinet of Ministers, Minister of Foreign Affairs of Turkmenistan R. Meredov as a guest of the presiding party, as well as the heads of the permanent bodies of the CIS and CICA.

SCO Secretary-General Zhang Ming, Director Executive Committee of the SCO Regional Anti-Terrorist Structure R.E. Mirzaev, Chairman of the National Part of the SCO Business Council from the Islamic Republic of Pakistan Sheikh Atif Ikram, and Chairman SCO Interbank Association Council M.T. Elibaev also attended the meeting.

The heads of delegations highly appreciated the chairmanship of the Republic of Kazakhstan in the SCO in 2023-2024 and stressed the importance of implementing the decisions taken following the outcomes of the meeting of the Council of Heads of State of the SCO Member States (CHS) in Astana on July 4, 2024. The heads of delegation expressed their support for the People’s Republic of China as the current chair of the organization for 2024-2025.

They reaffirmed the intention of the member states to promote the proposal for 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”. The heads of delegations, taking into account the views of member states, 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 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 delegations reaffirmed that the member states intend to further develop cooperation in the spheres of politics and security, trade, economy, finance and investment, and cultural and humanitarian ties in order to build a peaceful, safe, prosperous and ecologically clean planet Earth to achieve a harmonious coexistence of man and nature. The heads of delegation noted the tectonic shifts in the global economy, characterized by rapid advancements and interconnectivity in the areas of information technology, digitalization, artificial intelligence, virtual/digital assets, e-commerce, etc.

They 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. The heads of delegation considered it important to continue joint efforts to counter protectionist trade measures that are contrary to WTO 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. They also opposed protectionist actions, unilateral sanctions and trade restrictions that undermine the multilateral trading system and impede global sustainable development.

The heads of delegations emphasized 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 Republic of Belarus, the Islamic Republic of Iran, the Republic of Kazakhstan, the Kyrgyz Republic, the Islamic Republic of Pakistan, the Russian Federation, the Republic of Tajikistan and the Republic of Uzbekistan while reaffirming support for the People’s Republic of China’s One Belt, One Road (OBOR) initiative, note the ongoing work on joint implementation of the project, including efforts to bridge the Eurasian Economic Union and OBOR.

The heads of delegation stressed that the member states consider it important to use the potential of the countries of the region, international organizations and multilateral associations to create in the SCO region a space of broad, open, mutually beneficial and equal interaction in accordance with the norms of international law, mutual respect and consideration of national interests. 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.

The heads of delegations, advocating the promotion of cooperation within the framework of the SCO Year of Sustainable Development, considered it important to pursue sustainable and inclusive economic growth of member states by optimizing the region’s potential in areas such as green development, digital economy, trade, e-commerce, finance and banking, investment, high technology, start-ups and innovation, poverty alleviation, health care, including traditional and folk medicine, agriculture, industry, transport, logistics connectivity, energy, including renewable energy, communications, science and technology, environment and climate change.

The heads of delegations, reaffirming their desire to ensure stable economic and social development in the SCO region, noted the importance of implementing the SCO Economic Development Strategy for the period up to 2030 and the Program of Multilateral Trade and Economic Cooperation of the SCO member states. They stressed the need for coordinated efforts through the mechanisms of relevant cooperation in order to implement the respective action plans. The heads of delegations noted the results of the Meeting of SCO Ministers responsible for foreign economic and foreign trade activities (Islamabad, 12 September 2024) and instructed to ensure the implementation of the Concept for the Establishment of the Base of Economic Preferences of the SCO Member States, the Concept of Cooperation between Trade Promotion Organizations of the SCO Member States and the Framework for Cooperation of the SCO Member States in the Development of Creative Economy.

The heads of delegations, noting the presence of significant potential and opportunities for further building up trade and economic ties, 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 believe it is necessary to effectively utilize the digital economy and scientific and technological innovations in order to give a new impetus to economic development and progress in the SCO space, as well as to enhance the competitiveness of the region’s economy and potential. They emphasized that technology should benefit everyone.

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. They noted the adoption by interested Member states of the Concept for the Development of Digital Public Infrastructure for the Dissemination of Digital Technologies among the Population (Digital Inclusion) and the Promotion of Innovation (New Delhi, May 13, 2023). The heads of delegations emphasized the importance of regular meetings of the Special Working Group on Electronic Commerce and noted the proposal to convene the next meeting in China in the first quarter of 2025 and to develop a draft Program of Cooperation of the SCO Member States in the field of electronic commerce. The heads of delegation noted the role of standardization tools in trade facilitation and called for promotion of mutually beneficial and equal interaction between the SCO Member States, as well as the exchange of experience in these areas.

The heads of delegation noted the positive dynamics in the development of customs cooperation, in particular on projects aimed at simplifying, securing and strengthening logistics chains in the SCO space, improving customs control and suppressing smuggling channels.

Recognizing the importance of the work of the Meeting of Industry Ministers of the SCO Member States, the heads of delegations noted the proposals to hold the next meeting in 2025. They believe that support for creative industries will stimulate the competitiveness of economies and industrialization, which will lead to the expansion of labour markets, including for the benefit of youth, a reduction in unemployment, and sustainable growth in the SCO member states.

The heads of delegation also advocated the elaboration of the proposal to create a Data Bank of investment projects in the field of industry of the SCO Member states and the adoption of the Regulations on the organization of congress and exhibition events under the auspices of the Meeting of Industry Ministers of the SCO member states. The heads of delegations noted the positive experience of the SCO’s participation as a partner organization of the INNOPROM International Industrial Exhibition (Ekaterinburg, July 8-11, 2024)

The heads of delegations noted the proposal to establish an exchange of experience on the implementation of national industrial policy, digital platforms, production technologies, standardization in the field of IT solutions. 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 emphasized 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 delegations, stressing the importance of promoting a common vision of the energy future, noted the results of the Meeting of the Ministers of Energy of the SCO Member States (Astana, June 21, 2024). They emphasized the need to continue mutually beneficial cooperation in the energy sector, in particular, in order to develop cross-border energy infrastructure, strengthen energy security on the basis of the Strategy for the Development of Energy Cooperation of the SCO Member States for the period up to 2030 (Astana, July 4, 2024), and instructed to accelerate the development of a “roadmap” for its implementation.

The heads of delegations noted the proposal to prepare a comprehensive plan to stimulate investment and attract technologies in renewable energy. Taking into account the national interests of the Member States, they will continue to promote the development of a full-scale dialogue on energy issues, practical cooperation among energy producers, transit countries and energy consumers. The heads of delegations welcomed the outcomes of the first Meeting of the heads of Ministries and Departments of the SCO Member states in the field of antitrust policy (Dushanbe, May 30, 2024), which made an important contribution to strengthening cooperation in the field of antitrust regulation and combating unfair competition in order to create a fair international economic and trade environment.

The heads of delegations noted the need to improve the mechanism of external audit of the Organization by involving the supreme audit institutions of the SCO Member States with the necessary professional competencies in this activity. They instructed the heads of the Supreme Audit Institutions to consider this issue at the next relevant meeting. The heads of delegations welcomed the establishment of the SCO Investors Association and instructed the authorized bodies of the SCO Member States to take measures to establish the practical work of this cooperation mechanism. They noted the results of the meeting of the Special Working Group on Investment Promotion of the SCO Member States (Tehran, February 20-22, 2024), co-chaired by the Republic of Tajikistan and the Islamic Republic of Iran, as well as the proposal to develop a set of measures to stimulate mutual investments. The heads of delegations expressed confidence that the activities of these mechanisms will give a new impetus to cooperation within the SCO in the investment sphere.

Pursuant to the SCO CHS Decision of 4 July 2024 on the mechanisms of financial support for project activities of the Shanghai Cooperation Organization, the heads of delegations instructed the authorized Ministries and Departments of the Member States to intensify consultations on the establishment of the SCO Development Bank, the SCO Development Fund (Special Account) and, in the format of the interested parties, the SCO Investment Fund. The heads of delegations of the interested SCO member states, noting the efforts to seek consensus to develop agreed recommendations for the SCO member states, reaffirmed the need for consistent implementation of the Road Map of the SCO Member States on gradual increase in the share of national currencies in mutual settlements (Samarkand, September 16, 2022). They highlighted proposals for the establishment of an independent settlement-clearing mechanism, as well as for the convergence of payment systems by interested member states.

The heads of delegations, stressing the important role of the SCO Business Council (BC) in the development of cooperation between the business communities of the SCO member states, noted the results of the meeting of the SCO BC Board and the SCO Business Forum (Astana, June 28, 2024). The heads of delegations noted the efforts of the SCO Interbank Association (IBA) in studying best practices for implementing ESG-financing between SCO IBA member banks and the introduction of financial innovations in order to promote sustainable and balanced growth of national economies. They noted the intention of the Government of the Islamic Republic of Iran to join the work of the SCO IBA.

The heads of delegations consider the contribution of the BC and IBA to practical cooperation in the interests of sustainable socio-economic development in the SCO space to be important. The heads of delegations noted the work of the Consortium of SCO Economic Think Tanks, including the preparation of a report on the topic “Improving Trade and Technological Cooperation between the SCO Member States: proposals and Further Actions”. They welcomed the accession of the Belarusian Institute for Strategic Studies to the Consortium.

The heads of delegations, reaffirming the special role of the development of interregional cooperation, noted the results of the Forum of the Heads of SCO Regions (Omsk, September 17-19, 2024). They consider the activities of these formats important for strengthening trade and economic cooperation between the SCO Member States, studying the state and assessing the prospects of multilateral interaction within the framework of the Organization.

The heads of delegations noted the importance of building multilateral cooperation in the field of official statistics for the introduction of best statistical practices and methodological developments in order to timely provide the Member states with official statistical information within the framework of priority directions of trade and economic cooperation.

The heads of delegations 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 advocated further implementation of the Concept of Cooperation of the SCO Member States on the Development of Interconnectivity and Creation of Efficient Transport Corridors (Samarkand, September 16, 2022).

The heads of delegations noted the results of the Meeting of the Transport Ministers of the SCO Member States (June 20, 2024, VC). They spoke in favour of the active implementation of the Agreement between the Governments of the SCO Member States on Establishing Favourable Conditions for International Road Transport (Dushanbe, 12 September 2014), including regular meetings of the relevant Joint Commission.

The heads of delegations welcomed the holding of an international, regional conference dedicated to the 10th anniversary of the signing of the above-mentioned intergovernmental agreement (Dushanbe, May 29, 2024). They instructed relevant ministries and departments to take measures to implement previously adopted conceptual documents in the areas of decarbonization of transport, digital transformation and innovative technologies, and development of ports and logistics centres.