India favours rule-based, transparent trading system: Swaraj

India subscribes to a rule-based, transparent, open and inclusive multilateral trading system and firmly opposes unilateralism and protectionism, External Affairs Minister Sushma Swaraj said Wednesday as the China-US trade war threatens to crimp global growth.

Addressing the meeting of Shanghai Cooperation Organisation Council (SCO) Foreign Ministers here in the Kyrgyz capital, Swaraj said despite a turbulent global scenario, SCO member states have been steadily expanding mutually beneficial cooperation in various spheres, including political, security and development.

She said that India is committed to continue working for a favourable environment for the SCO member countries' economic activities and to intensify work on the relevant SCO documents dealing with economic and trade cooperation.

"India subscribes to a rule-based, transparent, non-discriminatory, open and inclusive multilateral trading system, centered around the World Trade Organisation, and firmly oppose unilateralism and protectionism," she said.

A recent escalation in the US-China trade conflict, including tariff hikes from both sides, has sparked reaction from industries hit by the higher levies.

US President Donald Trump increased tariffs on USD 200 billion worth of Chinese imports into the US from 10 per cent to 25 per cent earlier this month, after Washington and Beijing failed to reach a deal on trade.

China retaliated by announcing plans to raise levies on USD 60 billion of US imports from June 1.

China has signalled some willingness to work with the US to solve their trade dispute.

No discussions have been scheduled since the last round of talks ended on May 10. The US and Chinese leaders are also set to meet at the G20 summit in Japan next month.