logo
BRICS summit in Brazil to champion multilateralism amid trade tensions

BRICS summit in Brazil to champion multilateralism amid trade tensions

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.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

German Chancellor Opposes Israeli Plan for "Humanitarian City" in Rafah
German Chancellor Opposes Israeli Plan for "Humanitarian City" in Rafah

See - Sada Elbalad

time2 hours ago

  • See - Sada Elbalad

German Chancellor Opposes Israeli Plan for "Humanitarian City" in Rafah

Nada Mustafa German Chancellor Friedrich Merz has voiced his opposition to Israel's plan to establish what it calls a 'humanitarian city' in Rafah, located in the southern Gaza Strip. In an interview with the German broadcaster ARD, Merz expressed his dissatisfaction with the Israeli government's actions in Gaza, stating that he has been discontented for several weeks and has raised his concerns directly with Israeli Prime Minister Benjamin Netanyahu, who is wanted by the International Criminal Court for alleged war crimes in Gaza. Merz emphasized his hope for achieving a two-state solution to the Palestinian issue in cooperation with the United States. 'The Palestinian people have the right to a place where they can live. What is currently happening in Gaza is unacceptable," he stressed. Germany has faced widespread criticism for being one of the most prominent political and military supporters of Israel amid what many have called a campaign of genocide against the people of Gaza. read more Gold prices rise, 21 Karat at EGP 3685 NATO's Role in Israeli-Palestinian Conflict US Expresses 'Strong Opposition' to New Turkish Military Operation in Syria Shoukry Meets Director-General of FAO Lavrov: confrontation bet. nuclear powers must be avoided News Iran Summons French Ambassador over Foreign Minister Remarks News Aboul Gheit Condemns Israeli Escalation in West Bank News Greek PM: Athens Plays Key Role in Improving Energy Security in Region News One Person Injured in Explosion at Ukrainian Embassy in Madrid News Israeli-Linked Hadassah Clinic in Moscow Treats Wounded Iranian IRGC Fighters News China Launches Largest Ever Aircraft Carrier Sports Former Al Zamalek Player Ibrahim Shika Passes away after Long Battle with Cancer Videos & Features Tragedy Overshadows MC Alger Championship Celebration: One Fan Dead, 11 Injured After Stadium Fall Lifestyle Get to Know 2025 Eid Al Adha Prayer Times in Egypt Business Fear & Greed Index Plummets to Lowest Level Ever Recorded amid Global Trade War News "Tensions Escalate: Iran Probes Allegations of Indian Tech Collaboration with Israeli Intelligence" News Flights suspended at Port Sudan Airport after Drone Attacks Arts & Culture Hawass Foundation Launches 1st Course to Teach Ancient Egyptian Language Videos & Features Video: Trending Lifestyle TikToker Valeria Márquez Shot Dead during Live Stream

Trump says US will send Ukraine Patriot air defense systems - War in Ukraine
Trump says US will send Ukraine Patriot air defense systems - War in Ukraine

Al-Ahram Weekly

time4 hours ago

  • Al-Ahram Weekly

Trump says US will send Ukraine Patriot air defense systems - War in Ukraine

President Donald Trump on Sunday said Washington would send Patriot air defense systems to Kyiv and hinted at new sanctions on Russia, once again voicing displeasure with Russian leader Vladimir Putin over Moscow's war in Ukraine. . The US president's announcement of the much-needed weapons for Ukraine came after he earlier said he would make a "major statement... on Russia" on Monday. The announcement could come amid a diplomatic flurry set for Monday, with the US special envoy starting his latest trip to Ukraine and Trump set to meet with NATO Secretary General Mark Rutte in Washington. Moscow's offensive on Ukraine has lasted for more than three years, with attacks intensifying this summer and US-led negotiations so far yielding no results to end the fighting. "We will send them Patriots, which they desperately need," Trump said Sunday, without specifying how many weapons he would send to Ukraine. "I haven't agreed on the number yet, but they're going to have some because they do need protection," he told reporters at Joint Base Andrews, as he returned from watching the FIFA Club World Cup final in New Jersey. The White House has U-turned from an announcement earlier this month that it would pause some arms deliveries to Kyiv, instead announcing a new deal which would involve NATO paying the United States for some of the weapons it sends to Ukraine. "We basically are going to send them various pieces of very sophisticated military and they're going to pay us 100 percent for them," Trump said. "It'll be business for us," he added. Rutte's 10:00 am (1400 GMT) Oval Office meeting will be closed to media, and he is slated to meet with Secretary of State Marco Rubio as well. Earlier this week, President Volodymyr Zelensky said Ukraine was "close to reaching a multi-level agreement on new Patriot systems and missiles for them." Trump also repeated that he was "disappointed" in Putin, as he grows increasingly exasperated with the Russian leader. "Putin really surprised a lot of people. He talks nice and then he bombs everybody in the evening," said the disgruntled Trump on Sunday. Last week, Trump accused Putin throwing "bullshit" at Washington on Ukraine -- openly frustrated with the seeming impasse. When he first returned to the White House in January, Trump insisted he could work with the Russian leader to end the war, holding off on hiking sanctions unlike European allies. But Russia has for months refused a ceasefire proposed by the United States and Kyiv. Trump has repeatedly voiced displeasure with Putin in recent days, and on Sunday hinted he might finally be ready to toughen sanctions as momentum grows for a deterrent package in Congress. When asked about whether he would announce any sanctions against Russia, Trump responded: "We're going to see what we will see tomorrow, OK?" and repeated plans to meet with Rutte. - 'Sledgehammer' - Earlier on Sunday, US senators touted a bipartisan bill that would arm Trump with "sledgehammer" sanctions to use against Russia. The sanctions bill would allow Trump "to go after Putin's economy, and all those countries who prop up the Putin war machine," Republican Senator Lindsey Graham told broadcaster CBS news. It "would give President Trump the ability to impose 500 percent tariffs on any country that helps Russia," said Graham, adding that those could include economies that purchase Russian goods like China, India or Brazil. "This is truly a sledgehammer available to President Trump to end this war," said Graham. "Without a doubt, this is exactly the kind of leverage that can bring peace closer and make sure diplomacy is not empty," Zelensky said about the proposed bill in an X post. Graham and Democratic Senator Richard Blumenthal were also due to meet NATO's Rutte on Monday night. Blumenthal told CBS news they would also discuss the legally thorny issue of unlocking frozen Russian assets in Europe and the United States for access by Ukraine. "The $5 billion that the United States has also could be accessed, and I think it's time to do it," said Blumenthal. Follow us on: Facebook Instagram Whatsapp Short link:

China exports beat forecasts in June after US tariff truce - Economy
China exports beat forecasts in June after US tariff truce - Economy

Al-Ahram Weekly

time4 hours ago

  • Al-Ahram Weekly

China exports beat forecasts in June after US tariff truce - Economy

China's exports rose more than expected in June, official data showed Monday, after Washington and Beijing agreed a tentative deal to lower swingeing tariffs on each other. Data from the General Administration of Customs said exports climbed 5.8 percent year-on-year, topping the five percent forecast in a Bloomberg survey of economists. Imports rose 1.1 percent, topping the 0.3 percent gain predicted and marking the first growth this year. China's exports reached record highs in 2024 -- a lifeline to its slowing economy as pressures elsewhere mounted. Beijing's efforts to sustain growth have been hit by a bruising trade war with the United States, driven by President Donald Trump's sweeping tariffs, though the two de-escalated their spat with a framework for a deal at talks in London last month. Monday's customs figures showed Chinese exports to the United States surged 32.4 percent in June, having fallen the month before, according to an AFP calculation based on official data. "Growth in export values rebounded somewhat last month, helped by the US-China trade truce," Zichuan Huang, China economist at Capital Economics, said. "But tariffs are likely to remain high and Chinese manufacturers face growing constraints on their ability to rapidly expand global market share by slashing prices," Huang said. "We therefore expect export growth to slow over the coming quarters, weighing on economic growth," she added. Customs official Wang Lingjun told a news conference on Monday that Beijing hoped "the US will continue to work together with China towards the same direction", state broadcaster CCTV reported. The tariff truce was "hard won", Wang said. "There is no way out through blackmail and coercion. Dialogue and cooperation are the right path," he added. - Stuttering growth - Analysts say China's economy is expected to have expanded more than five percent in the second quarter thanks to its strong exports. Official figures are due to be released on Tuesday. But they also warn Trump's trade war could cause a sharp slowdown in the final six months of the year. Beijing is targeting an overall expansion of around five percent this year -- the same as last year but a figure considered ambitious by many experts. First-quarter growth came in at 5.4 percent, beating forecasts and putting the economy on a positive trajectory. Beijing has struggled to sustain growth since the pandemic as it battles a prolonged debt crisis in the property sector, chronically low consumption and high youth unemployment. Data released last week showed that consumer prices edged up in June, barely snapping a four-month deflationary dip, but factory gate prices dropped at their fastest clip in nearly two years. Many economists argue that China needs to shift towards a growth model propelled more by domestic consumption than the traditional key drivers of infrastructure investment, manufacturing and exports. Beijing has introduced a slew of measures since last year in a bid to boost spending, including a consumer goods trade-in subsidy scheme that briefly lifted retail activity. Follow us on: Facebook Instagram Whatsapp Short link:

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store