Scope to expand intra-BRICS trade
Chinese president urges unity at BRICS Summit
BRICS countries are increasingly recognised as an influential formation in reinforcing the principles of transparency, inclusiveness and compatibility within the multilateral trading system, but have much scope to expand the value of trade among themselves, President Cyril Ramaphosa said yesterday.
Ramaphosa told the 10th summit of the group, which also includes Brazil, Russia, India and China, the agreement to establish the African Continental Free Trade Area – which provides access to a market of over 1billion people and a combined GDP of over $3 trillion (R40 trillion) – presented opportunities for BRICS countries, some of which had extensive experience in infrastructure development and were leaders in education and skills development.
“Intra-BRICS co-operation has been gaining momentum in areas such as finance, agriculture, trade, combating transnational crime, science and technology, health, education, security and academic dialogue,” Ramaphosa said.
But while trade among the BRICS partners had expanded exponentially over the last 10 years, member countries needed to advance to a new level of industrial co-operation, he added.
Ramaphosa cited one of the most important achievements of the first decade of BRICS as the establishment of the New Development Bank, which filled a critical gap in project funding.
“Since its formation, the bank has disbursed loans totalling $5.1 billion, with approvals amounting to $1.7 billion this year alone,” he said.
“As we enter the second decade of BRICS co-operation, we are determined to expand the bank’s role in economic and social development.”
Ramaphosa said as a country that primarily exported commodities to its BRICS partners, South Africa supported a shift towards complementary and value-added trade.
“Linked to the trade agenda, we need to increase investment between BRICS countries, particularly in the productive sectors of our economy,” he said.
Echoing sentiments expressed by several delegates, including Chinese President Xi Jinping, Ramaphosa said he was concerned by the rise in unilateral measures that were incompatible with World Trade Organisation rules. – African News Agency (ANA)
ADEVELOPING trade war will hurt the world economy and will yield no winners, Chinese President Xi Jinping warned yesterday. Tensions have risen between the US and China, Canada, Mexico and the EU, stemming from tariffs imposed by US President Donald Trump in a bid to protect producers in the world’s biggest economy.
Xi told the 10th summit of the BRICS grouping of Brazil, Russia, India, China and South Africa in Johannesburg that unilateralism and protectionism were mounting, dealing a “severe blow” to multilateralism.
“We are facing a choice between co-operation and confrontation,” he said.
“A trade war should be rejected because there will be no winner. Those who pursue this course will only end up hurting themselves.”
Meanwhile, Brand South Africa said the BRICS alliance has become a distinct global brand with the five developing nations becoming advocates of free global trade, globalisation and promoters of protection of the environment in light of global climate challenges .
Brand South Africa said between 2009 and last year BRICS countries had made a total of 406 commitments and implemented 70% of decisions made at annual summits.
“The development of the BRICS brand takes place in a post-global financial crisis world characterised by growing protectionism, trade wars and turbulent political change,” Brand SA general manager for research Petrus de Kock said.
“The developments in the global economy and geopolitical environments play a major role in driving the search for strengthened, deepened and institutionalised BRICS interactions.
BRICS nations have been bucking these global trends of anti-globalisation and counter-integrationist discourses and as a result, have anchored their own economies through the BRICS partnerships.”
South Africa is hosting the 10th BRICS summit in Johannesburg from yesterday to tomorrow against the backdrop of a brewing trade war between the US and China, Canada, Mexico and the EU over tariffs which has also hit developing countries. – African News Agency (ANA)