Slow global economic recovery a concern: BRICS
July 14, 2014, 11:57 pm

BRICS are also looking at a proposal to establish a BRICS Expert Dialogue on Electronic Commerce [gov.br]

“The Ministers expressed their confidence that, in spite of the challenging economic environment, the BRICS countries will continue to contribute to the global economic recovery,” said a joint statement after the five Ministers met in Fortaleza on Monday. World stocks fell last week as a decline in Chinese inflation and weaker European industrial data combined to suggest global growth may be slowing.

BRICS countries make up 46 per cent of the world’s population, 26 per cent of the world’s land mass and account for about 20 per cent of global GDP, giving the group considerable global heft.

The BRICS Trade Ministers also tried to brush off criticism from rich nations that these countries are growing more protectionist.

“In this context, they reaffirmed their commitment to refrain from trade protectionist measures that are incompatible with WTO obligations, while respecting the special and differential treatment for developing countries,” said the BRICS statement on Monday.

The EU had last year launched a WTO case against Brazil over its import taxes that Europe says are unfair and break global trade rules.

Brazil, accused of using strident protectionist measures under the Rousseff administration, has mantained levying import taxes was within the country’s rights. The US and Japan have rallied at the WTO against Brazil’s move to raise tariffs on hundreds of imported goods to protect its local industry.

Meanwhile, the BRICS Trade Ministers in Fortaleza reaffirmed the need for conclusion of Doha Round of trade negotiations to promote full integration of developing countries into global trading system.

BRICS nations will continue to insist on the WTO work programme to “reflect the centrality of agriculture and of the development dimension”, said the statement.

India’s last government had implemented a welfare programme to give cheap food to 800 million people that it fears will contravene WTO rules that limit farm subsidies to 10 per cent of production. India has rallied developing countries which demand that poor countries be exempt from this WTO rule.

The five trade ministers also discussed a trade study that recommended promoting value-added exports among the BRICS countries.

BRICS are also looking at a proposal to establish a BRICS Expert Dialogue on Electronic Commerce, said the statement.

After two years of tough negotiations, the five emerging countries are due to sign off on a new Development Bank on Tuesday, along with a $100 billion contingency reserves fund.

Helmo Preuss in Fortaleza, Brazil for The BRICS Post