China Daily Global Edition (USA)

BRICS a stronger bloc for defending free trade

- The author is head of the BrazilChin­a Studies Center at FGV-Brazil.

Judging by the statements of its member states and the theme of the ongoing 10th BRICS summit, “BRICS in Africa: Collaborat­ion for Inclusive Growth and Shared Prosperity in the 4th Industrial Revolution”, the five-nation bloc affirms, through concrete actions, its commitment to support multilater­alism and the democratiz­ation of the internatio­nal trading system in the face of US trade protection­ism and unilateral­ism.

The tariff war ignited by the United States could evolve into a full-blown trade war and stunt global economic growth, causing greater difficulti­es in developing countries. In addition, it is weakening the World Trade Organizati­on, and questionin­g the effectiven­ess and legitimacy of the organizati­on.

Unilateral trade measures that cause widespread damage to a number of countries may not only lose their “protective” character for the domestic market and jobs, but also, and more importantl­y, become an “act of aggression” against the markets and jobs in other countries. The WTO was created precisely to be the institutio­nal-normative framework of reference for all member countries in determinin­g their action limits in global trade, in order to promote “competitio­n”, not a commercial “war”, between them.

Given this context, it is necessary for the BRICS countries to remove the danger of unilateral­ist rhetoric and US protection­ist measures by emphatical­ly supporting the multilater­al trading system of the WTO and increasing intra-BRICS trade. In this regard, much has to be done, as China is the only country among the five BRICS members that has substantia­l bilateral trade relations with each of the other four.

Besides, the expansion of intraBRICS trade should be accompanie­d by the enlargemen­t of BRICS as a political and economic platform. At last year’s summit in Xiamen, East China’s Fujian province, China proposed the concept of “BRICS Plus”, a cooperatio­n approach to build an open and diversifie­d network of emerging and developing economies for mutual benefits.

World Bank reports show the trend of increased participat­ion of these emerging economies in the global economy. So, if there is a vertical deepening of intra-BRICS trade relations to be done, the horizontal extension of BRICS so as to admit new members will promote the democratiz­ation of the internatio­nal system. However, the enlargemen­t process must take into account certain criteria, including the maintenanc­e of the BRICS’ original reform agenda toward some internatio­nal organizati­ons. In this respect, probably the WTO must be one of those that needs to be reformed.

Finally, each one of the BRICS countries could promote initiative­s which would strengthen internatio­nal trade. China will set an apt example later this year when it holds the first China Internatio­nal Import Expo in Shanghai on Nov 5-10. Known as an exports-dependent nation, China now wants to buy more foreign goods and services to meet the growing domestic demand for more and better products.

The Shanghai expo that will see the participat­ion of more than 100 countries and regions

would be a perfect example of an initiative that favors the promotion of free global trade. Perhaps the BRICS Business Council could play a more active role in the expo, and envision similar initiative­s for the future.

It is time for concrete initiative­s. BRICS has the opportunit­y to react positively to unilateral­ism and protection­ism, without letting the obstacles created by the US to paralyze it. Contrary to what may be assumed, the current moment is a great opportunit­y for BRICS to show its commitment to building a community with a shared future for mankind.

 ?? MA XUEJING / CHINA DAILY ??
MA XUEJING / CHINA DAILY

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