The BRICS countries – Brazil, Russia, India, China and South Africa – are set to convene to discuss ways to boost trade between member states and promote post-pandemic economic recovery. According to Ayanda Ntsaluba, an official from the South African Chapter of the BRICS Business Council, there is an urgent need to explore measures to relax trade hindrances, enhance trade balance, and unlock areas of comparative advantage such as agriculture.
Speaking to Xinhua in an interview, Ntsaluba said the BRICS countries have been engaging with business councils from other member states on various ideas and have invited leaders from regional economic communities to meet with the BRICS leaders to discuss business. He noted that the discussion will be geared towards increasing the export of South African beef, grapes, and wines to China and other BRICS countries.
Bilateral trade between South Africa and China, as well as that between South Africa and India, has shown impressive growth, according to Ntsaluba. However, he stated that they would like to further strengthen relatively low trade with Russia and Brazil. Ntsaluba added that they have identified some obstacles that limit the ability of member states across a variety of goods and services, and they would like to explore ways to remove these hindrances.
South Africa assumed the BRICS presidency on Jan. 1, 2023, taking over from China. The country is set to host the BRICS summit on Aug. 22-24, which is expected to benefit the entire African continent. Ntsaluba noted that they would explore ways to find synergy between the BRICS and the African Continental Free Trade Area and enhance skills exchange among the countries.
Ntsaluba also pointed out that South Africa would like to work with neighboring countries to have a combo where tourists from BRICS countries can visit South Africa and other countries in the region. He said they are expecting to receive more tourists from other BRICS countries and would like to partner with BRICS countries to help South Africa skill its youths with critical skills to be more prepared for opportunities in the global economic craft.
Trade among BRICS countries has been increasing steadily over the years. According to data from the World Bank, the total merchandise trade among the BRICS countries reached $4.6 trillion in 2020, up from $4.5 trillion in 2019, despite the COVID-19 pandemic. China remains the largest trading partner of the BRICS bloc, accounting for 51.8% of the bloc’s total exports in 2020, followed by Russia (15.2%), India (13.1%), Brazil (10.1%), and South Africa (9.9%).
However, despite the impressive growth in trade among BRICS countries, there are still challenges that need to be addressed. For example, the bloc is yet to develop a common platform for settling trade disputes, and each member state has its own currency, which could limit trade among the countries. Therefore, the BRICS countries need to find ways to address these challenges to boost trade among member states further.
BRICS countries are set to meet to discuss measures to boost trade among member states and promote post-pandemic economic recovery. The discussions will center on ways to relax trade hindrances, enhance trade balance, and unlock areas of comparative advantage such as agriculture. South Africa, which assumed the BRICS presidency on Jan. 1, 2023, is set to host the BRICS summit on Aug. 22-24, and the country hopes to explore ways to find synergy between the BRICS and the African Continental Free Trade Area and enhance skills exchange among the countries. The meeting is also expected to benefit the entire African continent by promoting trade and economic growth.
