BRICS bypasses reference to regional currency trading in Rio declaration statement
The 2019 BRICS summit, held in Rio de Janeiro, brought together leaders from Brazil, Russia, India, China, and South Africa, as well as Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates. The gathering aimed to discuss a range of global issues, from trade to security.
One of the most notable aspects of the summit was the BRICS declaration, which did not explicitly mention de-dollarization or local currency trade, despite previous declarations supporting such practices. This omission can be attributed to the summit's focus on multilateralism, reforming global governance, and cooperation among Global South countries, as well as the need to maintain diplomatic balance and avoid direct confrontation with major global powers.
The declaration did touch upon critical issues related to trade, expressing serious concerns about the rise of unilateral tariff and non-tariff measures that distort trade and are inconsistent with WTO rules. Notably, the US was targeted for tariff actions mentioned in the declaration.
On the trade front, the BRICS leaders discussed the importance of keeping the supply chains of critical minerals intact while ensuring full autonomy to mineral-rich countries. However, the declaration did not specify which countries the critical minerals refer to, nor did it provide details on the specific critical minerals being discussed.
The summit also addressed the impact of non-tariff barriers on trade. The European Union's carbon tax and deforestation regulations were singled out for mention, particularly because they are expected to impact big agriculture exporters like Brazil.
In a positive development, the BRICS grouping backed the revival of the WTO's dispute settlement mechanism, which has been in limbo since December 2019. This move is seen as a step towards strengthening the global trade system and promoting fair trade practices.
As for other developments, the FIFA Club World Cup semifinals qualified teams and a schedule, but further details were not provided in the paragraph.
In a separate development, President Donald Trump renewed tariff threats against countries, including those in the BRICS group. It should be noted that Trump had previously threatened 100% tariffs on BRICS members if they tried to create a new currency or back any other to undermine the US dollar.
In conclusion, the 2019 Rio de Janeiro BRICS summit saw leaders focusing on broader themes of multilateralism and global governance reform. While some key issues were addressed, others, such as de-dollarization and local currency trade, were left unaddressed, likely due to strategic choices and diplomatic considerations. The ongoing trade tensions, particularly between the US and the BRICS nations, remain a significant concern.
- The BRICS declaration, despite expressing concerns about unilateral tariff measures, did not explicitly mention de-dollarization or local currency trade, showing a focus on maintaining diplomatic balance and avoiding direct confrontation with global powers.
- The summit's discussions on trade included the importance of keeping the supply chains of critical minerals intact while ensuring autonomy for mineral-rich countries, but did not specify which countries or minerals were involved.
- The European Union's carbon tax and deforestation regulations were singled out for their potential impact on big agriculture exporters, such as Brazil, which is a concern for the BRICS leaders.
- A positive development at the summit was the BRICS grouping's backing for the revival of the WTO's dispute settlement mechanism, seen as a step towards promoting fair trade practices.
- Donald Trump, in a separate development, renewed tariff threats against BRICS countries, echoing his previous threats of 100% tariffs if they create a new currency or back any to undermine the US dollar.
- The outcome of the 2019 Rio de Janeiro BRICS summit highlighted the focus on broader themes of multilateralism and global governance reform, while trade tensions, particularly between the US and BRICS nations, remained a significant concern.
