Trade war risk to dominate BRICS summit in South Africa from today

Trade war risk to dominate BRICS summit in South Africa from today

Trade war risk to dominate BRICS summit in South Africa from today

JOHANNESBURG: Leaders of the BRICS emerging economies — Brazil, Russia, India, China and South Africa – will meet in Johannesburg from today, with the threat of a worsening global trade war topping the agenda.

US President Donald Trump’s hardening stance has compounded fears of an all-out trade war after he slapped levies on goods from China worth tens of billions of dollars as well as tariffs on steel and aluminum from the EU, Canada and Mexico.

Russian President Vladimir Putin, China’s President Xi Jinping and Indian Prime Minister Narendra Modi will attend the annual three-day summit opening in Johannesburg from Today.

Earlier this month, China said that it would step up cooperation with other developing nations like the BRICS grouping to counter “trade protectionism.”

Sreeram Chaulia, of the Jindal School of International Affairs outside Delhi, said BRICS leaders would “concur that the US has unleashed punitive trade wars that are hurting all the BRICS members.” “They have a collective interest in promoting intra-BRICS trade. The urgency this time is greater,” he said.

The BRICS group, comprising more than 40 percent of the global population, represents some of the biggest emerging economies, but has struggled to find a unified voice — as well as achieving sharply different growth rates.

Analysts say US trade policy could give the group some renewed momentum.

“Trade agreements between associations of countries like BRICS have become increasingly important given the self-seeking, and ultimately short-sighted, barriers to trade that are being instigated by the US,” Kenneth Creamer, an Economist at Johannesburg’s Wits University, said recently.

Manjula

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