BRICS Nations Unite for Trade and Climate Strategy

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The upcoming summit in Rio de Janeiro, Brazil, is anticipated to culminate in a joint statement from the BRICS nations—Brazil, Russia, India, China, and South Africa—criticizing ‘unilateral measures’ in trade policies.

Brazilian Ambassador Mauricio Lyrio stated, “The ministers are working on a declaration reaffirming that multilateral trade negotiations are the main axis of action in trade. They will also reiterate their criticism of unilateral measures from any source, a position that the BRICS countries have long taken.”

The BRICS group, which recently expanded to include Egypt, Saudi Arabia, the United Arab Emirates, Ethiopia, Indonesia, and Iran, is facing significant challenges from the trade policies of the United States.

China has advocated for stronger language in the declaration due to facing a 145 percent tariff on its exports to the United States. However, according to a source familiar with the negotiations, the final text will be critical but not overtly confrontational.

The expansion of BRICS has been met with resistance from the United States, especially with President Trump opposing the BRICS nations’ attempt to create a common currency that could bypass the US dollar in trade, threatening to impose 100 percent tariffs if such a step was initiated.

During its BRICS presidency, Brazil has temporarily set aside the common currency goal, as reported by Reuters in February. However, the strategies being pursued could lay the groundwork for reducing dependence on the US dollar in global trade.

In preparation for the United Nations Climate Summit to be hosted by Brazil in November, BRICS foreign ministers will also deliberate on a unified stance on climate finance, a pivotal agenda for Brazil’s presidency.

WHAT IS BRICS?

The acronym BRICS refers to the economies of Brazil, Russia, India, China, and South Africa. These countries form a group that stands for their initials in English.

Until South Africa joined in 2011, the original four members were known as BRIC. The group officially became BRICS with the participation of South African President Jacob Zuma at the summit in Sanya, China.

Bilateral relations within the BRICS nations are grounded in principles of equality, mutual non-interference in state affairs, and mutual benefit.

The term “BRIC” was originally coined by Jim O’Neill, then president of Goldman Sachs Investment Bank, in his 2001 publication, Building Better Global Economic BRICs. The foreign ministers of the original four members convened in New York in September 2006, leading to a full diplomatic meeting on June 16, 2009, in Yekaterinburg, Russia.

Countries such as Afghanistan, Argentina, Lebanon, Indonesia, Mexico, and Turkey have previously shown interest in full membership with BRICS. More recently, Iran, Egypt, Nigeria, Sudan, Syria, Bangladesh, and Greece have expressed interest in joining the BRICS alliance.