BRICS Nations Vow to Deepen Ties and Increase Trade Amid US Tariff Threats

Strategic Insights -

Nations making up the BRICS group, which includes Brazil, Russia, India, China, South Africa, and several other countries, are planning to deepen their economic ties and reduce reliance on trade with the United States as tensions between the US and its trading partners continue to escalate. The group, which accounts for more than 40 percent of the world's gross domestic product, condemned recent tariff and non-tariff measures imposed by some nations, and called for fair and inclusive trading rules in line with international norms set by the World Trade Organization.

Key Takeaways:

  • The BRICS group, which includes 10 developing economies, has vowed to increase trade among its member countries, reducing dependence on trade with the United States.
  • The group has criticized recent unilateral tariff and non-tariff measures, which it claims distort trade, and called for fair and inclusive trading rules.
  • The BRICS nations have agreed to deepen their economic ties and launch new projects, including a grains-trading exchange and an alternative international payment system.
  • China and Russia, two of the dominant members of the BRICS group, have sought to downplay the alliance's anti-Western connotations, claiming that its primary goal is to promote global economic balance.
  • US President Donald Trump has threatened to impose additional tariffs on countries that align themselves with what he called the "anti-American" policies of the BRICS nations.

Statistics:

  • The BRICS group accounts for more than 40 percent of the world's gross domestic product (GDP) (Source: BRICS Joint Statement)
  • The group has expanded to include Egypt, Ethiopia, Indonesia, Iran, and the United Arab Emirates as full members (Source: BRICS Joint Statement)
  • The BRICS group's grains-trading exchange aims to reduce reliance on the US dollar and increase trade among group members (Source: "BRICS to Launch Global Grain Trading Platform") (The New York Times)
  • The proposed alternative international payment system would allow members to trade using local currencies, potentially sidestepping sanctions imposed by the West (Source: "BRICS to Create New Global Payment System") (The Moscow Times)

Sources:

  • BRICS Joint Statement (no date)
  • "BRICS to Launch Global Grain Trading Platform" (The New York Times)
  • "BRICS to Create New Global Payment System" (The Moscow Times)