BRICS summit in Brazil to champion multilateralism amid trade tensions

Daily News Egypt

a day ago

Leaders of the growing BRICS group of nations are gathering in Brazil for a summit overshadowed by United States President Donald Trump's new tariff policies, with the bloc aiming to present itself as a defender of multilateralism.
The leaders, mainly from the developing world, will use the two-day summit beginning in Rio de Janeiro on Sunday to discuss ways to increase cooperation amid what they say are serious concerns over Western dominance.
The event will be marked by the high-profile absences of two of the bloc's most influential leaders. For the first time since taking power in 2012, Chinese President Xi Jinping will not be attending in person, instead sending Premier Li Qiang.
Russian President Vladimir Putin will also miss the in-person summit. He is wanted by the International Criminal Court (ICC) for his role in the 2022 invasion of Ukraine, and Brazil, as a signatory to the Rome Statute that established the court, would be required to enforce the arrest warrant.
Hosted by Brazilian President Luiz Inacio Lula da Silva, the talks will be attended by Indian Prime Minister Narendra Modi and Chinese Premier Li Qiang, among others. Egypt's Prime Minister Mostafa Madbouly will attend on behalf of President Abdel Fattah Al-Sisi.
Now chaired by Brazil, leaders at the summit are expected to criticise the Trump administration's 'indiscriminate' trade tariffs, saying they are illegal and risk hurting the global economy. Global health policies, artificial intelligence and climate change will also be on the agenda.
A Counterweight to the West
The 17th BRICS Summit comes at a time of growing global volatility. Amid mounting geopolitical tensions and economic fragmentation, the bloc is positioning itself as a source of stability.
The group sees itself as a forum for cooperation between countries of the Global South and a counterweight to the Group of Seven (G7), which is comprised of leading Western economic powers. Its creation has been described as a significant challenge to the US-led global political, economic and financial systems that have dominated since the Second World War.
In a preview report for the summit, the Brazilian Centre for International Relations (CEBRI) last week labelled BRICS 'the first-ever transregional association of non-Western States'.
The bloc's members have advocated for a multipolar world order and a greater voice for fast-developing countries of the Global South in world affairs. The theme of this year's summit is 'Strengthening Global South Cooperation for More Inclusive and Sustainable Governance'.
Expansion and Economic Influence
Originally an acronym for Brazil, Russia, India and China, the bloc held its first summit in 2009. South Africa was invited to join a year later, adding the 'S' to BRICS.
The group has since undergone significant expansion. It now comprises 10 countries after Egypt, Ethiopia, Iran, the United Arab Emirates and Indonesia joined earlier this year. Saudi Arabia was slated to join last year and is listed as a member on the BRICS website, but it has not yet made a final decision.
This expansion marks a qualitative leap in its representativeness and influence. The BRICS countries now account for almost half of the world's population, 36 percent of global land area, and more than 50 percent of global economic growth. With the addition of its new members, the bloc represents nearly 30 percent of global GDP.
To challenge established financial institutions, BRICS created the New Development Bank (NDB) as an alternative to the World Bank. The NDB has approved over $39 billion for 120 projects, focusing on infrastructure, clean energy and sustainable development.
The bloc has also established a mechanism to provide financial support during economic crises, partially rivalling the role of the International Monetary Fund (IMF).
De-dollarisation and its Challenges
BRICS nations continue to push for reform of global institutions like the United Nations Security Council, IMF and World Bank. They are also working to diversify from US dollar-denominated trade, a process known as de-dollarisation. Intra-BRICS trade is increasingly conducted in local currencies and through alternative payment systems to the Western-backed Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Policymakers have also mooted the possibility of launching their own currency to challenge the US dollar, but progress has been slow. Plans have met resistance from some members, particularly India, over concerns about China's economic dominance. The plans were further stymied when Trump warned BRICS that the bloc would face 100% tariffs on imports to the US if a common currency were announced.
Growing Interest in Membership
According to the bloc's website, 44 nations have either formally applied for membership or made exploratory moves toward joining. This year, Belarus, Bolivia, Cuba, Kazakhstan, Malaysia, Thailand, Vietnam, Uganda and Uzbekistan became partner countries under the moniker BRICS+, seen as a prelude to formal membership.
Other nations expressing interest include Azerbaijan, Bahrain, Bangladesh, Burkina Faso, Cambodia, Chad, Colombia, the Republic of the Congo, Equatorial Guinea, Honduras, Laos, Kuwait, Morocco, Myanmar, Nicaragua, Pakistan, the Palestinian territories, Senegal, South Sudan, Sri Lanka, Syria, Venezuela and Zimbabwe.
However, expansion is not without its own political hurdles. Argentina had applied to join, but its application was withdrawn under President Javier Milei in December 2023, who cited a preference to maintain close ties with the West. Turkey's plan to join was vetoed by India, which cited Ankara's close ties with its foe Pakistan.