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Brazil, Russia, India, China, and South Africa, accounting for about 40% of the world's population and nearly a quarter of its production, think that it's a good thing. it's time to change the way things are done.
At the Johannesburg Summit, the Brics countries declared that they wanted a fairer and more representative world order in diplomacy and trade, just like China, the largest member, faced with billions of dollars. additional US dollars
. the United Nations Security Council and the International Monetary Fund to better represent developing countries, and asked members of the World Trade Organization – including the United States – to abide by the rules of the United Nations. WTO, as the multilateral trading system faces unprecedented challenges. Lyal White, senior director of Johannesburg Business School at the University of Johannesburg, said Friday by phone that he was not rebalancing the current world order, but was challenging that order. "Each of these countries can not do it alone, but together they are a force to be reckoned with.It is a decisive but progressive change."
Chinese President Xi Jinping pushed the # Call for multilateralism in commerce. His US counterpart Donald Trump has intensified trade tensions by threatening to impose tariffs on all exports of the Asian economy. This could derail a global recovery that is already losing momentum as economic growth is weaker than expected in Europe and Japan, as financial markets seem to be satisfied with rising risks, warned the International Monetary Fund on July 16th.
Brics "took a firm stand against protectionism," South African President Cyril Ramaphosa told reporters at the end of the summit on Friday. "We felt that we should do everything possible to strengthen the multilateral trading system that is currently under attack.There are many attempts to weaken it."
Members are sovereign nations and would never be forced to take sides, he said. "None of us, as a member of Brics, will ever accept the fact that we should be told who should be our friends and who should be our enemies."
The annual gathering of the coterie of emerging economic powers, first identified by Goldman Sachs Asset Management's former president, Jim O'Neill, is the 10th since its leaders began to meet and first since the prospect of a real global trade war has become a real threat.
EM Coalition [19659002] "The Brics Summit has been extremely successful for China in terms of building a coalition of emerging markets that seek to defend the current multilateral trading regime," said Martyn Davies, Managing Director of Emerging Markets and Africa at Deloitte. "What we have seen is the development of a program for these countries because there has never been a program before. We have never seen Brics speak of liberalized trade as a group or a coalition, but now trade is foremost. "
Russia is pushing for better business relations between its counterparts in the club, said President Vladimir Putin. All countries are committed to strengthening their cooperation in the field of energy and developing new technologies.
China has pledged $ 14.7 billion in investments in South Africa, including loans to its electricity and logistics business. Commitments are the largest yet of the Asian nation in South Africa, whose power producer is running out of money while it cleans governance issues.
Global rules
"Will you say no? investment and loans that are badly needed? White said, "China will become the most dominant economy in the world. These are the rules of the game on a global scale – South Africa must learn to play. "
China benefited greatly from joining a liberalized and regulated multilateral regime when it became a member of the WTO in 2001," said Davies. been dependent on exports – of course, it will defend that and bring other countries to the same stage, "he said. "It takes stock by creating these coalitions in Brics directed against belligerency and the erratic nature of US trade policy."
© 2018 Bloomberg L.P
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