BRICS vows commitment to open development, multilateralism

The BRICS countries are reaffirming their commitment to free trade and multilateral development at an ongoing Summit in Johannesburg.

Addressing the BRICS Business Forum, South African President Cyril Ramaphosa suggested that unilateralism and trade protectionism are impeding the development of the whole world.

South Africa's President Cyril Ramaphosa delivers a speech during the opening of the BRICS Summit held in Sandton, Johannesburg, South Africa, 25 July 2018. The summit is held over three days between 25 and 27 July. [Photo: IC]

He says BRICS countries will push for multilateralism, delivering more benefits for the world, especially for emerging economies and developing countries.

"We are meeting here at a time when the multilateral trading system is facing unprecedented challenges. We are concerned by the rise in unilateral measures that are incompatible with World Trade Organization rules and are worried about the impact of these measures, especially on developing countries. These developments call for thorough discussion on the role of trade in promoting sustainable development and inclusive growth. The BRICS countries are increasingly recognized as an influential formation in reinforcing the principles of transparency, inclusiveness and compatibility within the multilateral trading system."

Figures show that over the past 10 years, the BRICS total GDP has grown by 179 percent, and its trade expanded by 94 percent.

Their trade volume rose from 11 percent to 16 percent of the world's total, contributing to half of the world's growth.

Zhang Shaogang, director with the Department of International Trade and Economic Affairs with China's Ministry of Commerce, says the enormous progress is due to multilateralism.

"We should admit all the BRICS countries are the beneficiaries of multilateral trade, and are the beneficiaries of WTO cooperation. So under the current circumstances, it is our obligation, our commitment towards the multilateral trading system, to safeguard the existence of the WTO and to show our clear and strong will against any unilateral action and protectionism"

The BRICS summit takes place as uncertainties are mounting in the global economy after the Trump administration initiated tariffs against countries including China.

Iqbal Surve, President of the BRICS Business Council, has criticized the US move, saying BRICS countries will strengthen their linkages, to ensure that they create the momentum required in the global economy.

"We must be strong advocate on free trade. Our countries need free trade, it's important for our economies. We cannot have a situation where those countries that have reached a high level of growth today stop imposing trade values. In fact they were in Africa 20 years ago for free trade and globalization. Now they've reached a certain point of wealth. BRICS countries and other developing economies cannot be denied access to those market. Of course, for us, the BRICS nations, we don't want trade barrier, we want greater cooperation."

Over the past ten years, BRICS has been fully committed to expanding and strengthening trade and investment ties between the 5 nations. It has also been promoting trade and investment beyond the group, especially to emerging economies and developing countries.