Bridges Weekly Trade News Digest • Volume 8 • Number 9 • 10th March 2004
India, Brazil, South Africa Strengthen South-South Cooperation
The foreign ministers of Brazil, India and South Africa — Celso Amorim, Yashwant Sinha and Nkosazana Dlamini-Zuma met in New Delhi from 4-5 March. The India-Brazil-South Africa (IBSA) Trilateral Ministerial Forum in India discussed a wide range of topics related to the strengthening of South-South cooperation, including trade, and adopted a plan of action. The three countries, which played a key role in the establishment of the G-20 group of developing countries in the WTO around last year’s Cancun Ministerial, set up the IBSA Forum in June 2003. It was formally launched by Presidents Thabo Mbeki, Lula da Silva and Prime Minister Atal Bihari Vajpayee during the UN General Assembly in September 2003.
Commenting on the group and the meeting, Amorim said ”this is a group to spread goodwill and the message of peace we are not against anyone”. Sinha stressed "the need to redefine the content of globalisation, to make it more pertinent to the needs and aspirations of the developing world". The three ministers said their partnership was "not just historic but irreversible", and said they would work more closely at multilateral forums such as the UN and the WTO "with the aim of advancing an alternative perspective on world affairs". The ministers discussed their trade links, and how to strengthen cooperation between Mercosur (which comprises Brazil, Argentina, Paraguay and Uruguay), the Southern African Customs Union and the South Asia Free Trade Association. At they end of their meeting, they adopted the New Delhi Agenda for Cooperation and a Plan of Action.
New Delhi agenda for cooperation and plan of action
The outcome of the meeting comprised an agenda for cooperation and a comprehensive plan of action. The plan of action spans such areas as trade and transportation, infrastructure, science and technology, information society, health, energy, and education. The meeting also agreed on the establishment of the IBSA Fund for Alleviation of Poverty and Hunger, to be managed under UNDP. All three countries pledged financial contributions to the fund.
Specifically on trade and investment, the ministers agreed that "the IBSA countries can reinforce the economic strength of each other by synergising their complementarities in areas of industry, services, business and technologies and create a market of 1.2 billion people, 1.2 trillion dollars of GDP and foreign trade of 300 billion dollars". They also agreed to give further consideration to a trilateral cooperation agreement to promote and facilitate trade.
Further, the three ministers agreed to: seek convergence between the preferential trade negotiations between the three countries and their regions (Mercosur-SACU, Mercosur-India, SACU-India); increase trade flows between the three countries from US$ 4.6 billion presently to US$ 10 billion by 2007; and strengthen business to business links among the three countries. In addition, they would continue holding IBSA business summits and conduct studies on how to increase trade and investment among the three countries.
Zoellick calls for concessions from large developing countries
In related news, US Trade Representative Robert Zoellick lashed out at advanced developing countries such as India, China and Brazil in a testimony before the US Senate Finance Committee on 9 March, stressing that "large emerging market countries are going to have to open up more to the US and the global trading system, if they want to continue to enjoy trade benefits". On special and differential treatment, he said competitive countries such as Brazil and Argentina should not expect more lenient terms and longer implementation schedules, which should be the reserve of the poorest developing countries. ”So that’s how we’re going to have to strike the balance,” he said — ”for those that are truly in need versus those that are competitive”.
During his speech to the US Senate, Zoellick gave an overview of US activities and plans on the multilateral, regional and bilateral trade fronts, taking a tough stance on China, particularly China’s currency, certain tax policies and failure to enforce intellectual property rights.
To access the IBSA Plan of Action see http://www.dfa.gov.za/docs/2004/ibsa0305a.htm
To access Zoellick’s statement before the US Senate Committee on Finance see http://www.ustr.gov/speech-test/zoellick/2004-03-09-senatefinance.pdf
"India, Brazil, South Africa begin strategic talks in New Delhi," CHANNEL NEWS ASIA, 5 March 2004; "India, Brazil, S Africa bloc forges ahead," TIMES OF INDIA, 6 March 2004; India, Brazil, South Africa discuss steps to enhance cooperation in economic arena, AP, 4 March 2004; "USTR: India, China Must Give To Get Trade Benefits," DOW JONES, 9 March 2004; "India, Brazil, South Africa Ready to Lead Global South," IPS, 7 March 2004.