BRICS to meet during G20 Summit in Brisbane
November 7, 2014, 6:35 am

Mutual trade among the BRICS almost doubled in the 5 years to 2013 to reach $300 billion [PPIO]

BRICS Presidents Xi Jinping, Vladimir Putin, Dilma Rousseff, Jacob Zuma and Prime Minister Narendra Modi will meet to eke out a strategy of cooperating within the framework of the G20 which is being held from November 15 to 16.

The five leaders will discuss developing agreements aimed at accelerating global economic growth and reiterate demands for one of the most difficult problems in global governance: IMF reforms.

Earlier this year in the Brazilian city of Fortaleza, BRICS heads of state agreed to establish a $100 billion New Development Bank (NDB) at their summit meeting, with severe implications for the global development-finance landscape.

The five countries have also created a $100 billion Contingency Reserve Arrangement (CRA), meant to provide additional liquidity protection to member countries during balance of payments problems.

Chinese and Russian Presidents Xi Jinping and Putin are also meeting in Beijing later this week during the APEC Leaders meet.

Recently reelected Brazilian President Dilma Rousseff confirmed on Thursday she will attend the BRICS meet and the G20 meet, accompanied by outgoing Finance Minister Guido Mantega.

The five countries are also expected to further discussions on a new “Energy Association” during the November meet aimed at ensuring the energy security of BRICS, and to conduct integrated research and analysis of global hydrocarbon markets.

Russian President Vladimir Putin had, during the 6^th BRICS Summit in Brazil, proposed the establishment of a BRICS Energy Association.

“We could create a Fuel Reserve Bank and a BRICS Energy Policy Institute under its roof,” Putin told his fellow BRICS leaders.

Meanwhile, India is bracing for further censure at the G20 Summit with its stymieing of a WTO trade pact earlier this year owing to its commitment to a domestic food security program. All the other BRICS members had agreed to adhere to the July 31 deadline for the trade facilitation agreement (TFA) which is expected to boost world GDP by up to $1 trillion.

The World Trade Organisation called on the G20 leading economies on Thursday to begin removing trade barriers. G20 leaders will push to save the WTO following warnings from Director General Roberto Azevêdo that it had descended into ‘paralysis’.

The head of the global trading body had said last month consultations will continue on the future of the Bali decisions and post-Bali work program.

India had initiated backroom talks with WTO, US and EU representatives to reach a compromise before the G20 Summit, although hopes of a deal being clinched are remote, says Indian media reports.

Meanwhile, in the BRICS meet this month, the five countries are expected to further show support for beleaguered President Putin. The US has pushed European capitals, despite some resistance, to “punish” Putin with sanctions for the accession of the Crimean peninsula.

A joint BRICS statement earlier in March this year criticized Australian Foreign Minister Julie Bishop’s statements that Putin could be barred from attending the G20 Summit in November.

“The Ministers noted with concern, the recent media statement on the forthcoming G20 Summit to be held in Brisbane in November 2014.  The custodianship of the G20 belongs to all Member States equally and no one Member State can unilaterally determine its nature and character,” said a joint BRICS statement.

BRICS combined GDP has reached 21 per cent of the global volume, and the five nations already account for 11 per cent of accumulated investment and nearly 20 per cent of global trade. Mutual trade almost doubled in the 5 years to 2013 to reach $300 billion.

The next BRICS Summit will be held in the Russian city of Ufa on 9-10 July 2015.

TBP