Reshaping Global Trade: SCO’s Stand Against Unilateralism

In a pivotal move at the 25th Shanghai Cooperation Organization (SCO) Summit in Tianjin, leaders from member states issued a groundbreaking statement endorsing the multilateral trading system. This declaration, released on September 1, 2025, underscores the SCO’s commitment to a rules-based global trade order centered on the World Trade Organization (WTO). As trade tensions escalate worldwide—particularly with recent U.S. reciprocal tariff frameworks—the statement positions the SCO as a counterbalance, advocating for stability, inclusivity, and reform.

SCO Tianjin Summit and Rising Trade Uncertainties

The SCO Summit 2025, hosted by China, marked a historic gathering with expanded membership including Iran, Belarus, and observers like North Korea. Amidst this, the statement on supporting the multilateral trading system emerges as a response to “severe challenges” in global trade. China’s Ministry of Commerce (MOFCOM) highlighted that certain countries’ abuse of tariffs has disrupted the global economic order, injecting uncertainty.

This year coincides with the WTO’s 30th anniversary, a milestone overshadowed by disputes over tariff measures and supply chain disruptions. The SCO’s intervention reflects a collective pushback against unilateral actions, emphasizing dialogue and adherence to WTO principles like most-favored-nation treatment and non-discrimination.

SCO Statement: A Blueprint for Trade Stability

The declaration is the first dedicated SCO statement on multilateral trade, signaling unified resolve. Here’s a breakdown of its core components:

• Support for WTO-Centric System: Reaffirms the WTO’s role in global governance, promoting liberalization and economic growth.

• Opposition to Restrictive Measures: Condemns trade actions violating WTO rules, such as coercive tariffs that undermine supply chains.

• Call for Reforms: Urges restoring the WTO’s dispute settlement mechanism and building resilient, inclusive supply chains.

• Focus on Development: Advocates integrating developing and least-developed countries into the system, supporting accessions like Belarus, Iran, and Uzbekistan.

• Future-Oriented Goals: Anticipates outcomes at the WTO’s 14th Ministerial Conference (MC14) in 2026.

MOFCOM noted China’s leadership during its SCO presidency in fostering this consensus, aligning with broader efforts to practice “true multilateralism.”

From Endorsement to Skepticism

The statement has elicited varied responses worldwide, reflecting geopolitical divides.

• Positive Echoes in Asia and Emerging Markets: Indian media framed it as a direct rebuttal to U.S. tariffs under President Trump, with SCO members opposing “coercive measures” that breach international law. Prime Minister Narendra Modi’s participation signals India’s interest in resetting ties with China amid U.S. pressures. Russian and Iranian outlets praised it as a step toward multipolarity.

• Western Perspectives: News outlets reported the SCO’s opposition to WTO-violating measures, interpreting it as criticism of U.S. policies. In the U.S., analysts viewed the summit as challenging American dominance, with “new world order” undertones. The WTO chief, Ngozi Okonjo-Iweala, indirectly supported stronger trade foundations, urging resilience against disruptions.

• European and Global Trade Bodies: The EU, fresh from an August 2025 framework agreement with the U.S. on reciprocal tariffs, remains cautious. The deal averted a 30% U.S. tariff hike, but SCO’s call for open supply chains resonates with EU concerns over global instability. Think tanks questioned the “reciprocal” label in U.S. policies, seeing it as potential WTO circumvention.

• Broader International Views: Media noted the summit’s timing amid Trump tariffs, positioning SCO as a platform for non-Western powers. Others highlighted its potential to lend weight to China’s multipolar vision.

Opportunities and Challenges

Economic Stability and Supply Chains

By emphasizing resilient supply chains, the declaration counters disruptions from tariffs. For instance, U.S. reciprocal tariff plans—outlined in executive orders and frameworks with partners like the EU and Indonesia—aim to rectify trade deficits but risk escalating costs. SCO’s stance could bolster alternatives like Eurasian trade corridors, benefiting members’ economies.

WTO Reforms and Inclusivity

The call for restoring the dispute mechanism aligns with global demands, potentially influencing MC14. It prioritizes developing nations, aiding integrations and accessions amid criticisms of Western dominance.

Geopolitical Ramifications

For the U.S., this underscores isolation risks from tariff policies. China gains as a multilateral leader, while India balances SCO ties with Quad commitments. Emerging markets see opportunities for diversified trade, reducing reliance on Western systems.

Inclusive Global Economy

As China pledges deeper SCO cooperation, the statement sets the stage for proactive multilateralism. With MC14 on the horizon, it could catalyze reforms, fostering an open economy amid uncertainties. For businesses and policymakers, monitoring these developments is crucial for navigating 2026’s trade landscape.