BRICS to Ensure Free Trade

30.10.2024

The attendees of the Kazan BRICS summit adopted a declaration enshrining the organisation’s long-term goals. Only one out of more than 130 clauses focuses on the resolution of the Ukrainian conflict. Experts say that unlike the G7 or G20, BRICS is not fixated on the political ambitions of its members, but rather prioritises the economic development of all of the member nations and creates instruments to ensure a fair international trade system.

On 23 October, the attending members of the BRICS summit adopted the Kazan declaration, which summed up Russia’s chairmanship, said Vladimir Putin at the conclusion of the plenary meeting. According to him, the resolutions can be passed over to the UN.

With more than 130 clauses, the declaration offers the assessments of the global state of affairs and sets up long-term goals. ‘Together, we have made progress in the three major tracks: politics and security; economy and finance; and cultural and humanitarian ties,’ Putin said, adding that it would have positive ramifications in the future.

The Russian president pointed to the BRICS member states’ willingness to proceed with the establishment of a more democratic and inclusive multipolar international system. Putin stresses that these nations are united in their understanding of the feasibility of ambitious large-scale projects and initiatives that can help reshape international relations.

Only one of the clauses addresses the Ukrainian crisis. It emphasises the importance of observing the UN Charter goals and principles. The summit attendees were also positive about the collaboration proposals ‘designed to ensure the peaceful resolution of the conflict through diplomatic efforts and dialogue’.

That being said, BRICS is increasingly concerned about the adverse effects the illegal sanctions have had on the global financial system, international trade and sustainability. These restrictions are ‘taking a huge toll on the energy sector, healthcare and food security, which further exacerbates poverty and environmental problems’.

The declaration stresses the need to reform the international financial architecture to solve the global financial issues. The attendees insist on creating a fair governance system and empowering national currencies.

Besides, the act addresses the pivotal role the New Development Bank (NDB) plays in supporting infrastructural and sustainable projects. BRICS encourages more funding in national currencies as well as enhanced innovative mechanisms. ‘We are supporting the creation of a new investment platform to attract more investments to the BRICS countries,’ the declaration posits.

Apart from that, the act pledges support for new payment systems and financial markets, the establishment of a grain trading platform proposed by Russia along with a long list of other initiatives.

Experts say much of the document focuses on financial and economic issues, with only a small part dedicated to politics. It follows from the act that the BRICS member states view each other as the partners prioritising economic cooperation, which enables their economies to grow.

‘Sure, the BRICS foundational ideas have to do more with economy, finance and trade. In this sense, the Kazan declaration takes over from, and is consistent with, the previous acts adopted by the organisation,’ says financial expert Denis Denisov.

‘It also advances the ideas of expanded free trade instruments, including the new payment systems. The restrictions that are now targeting China, Russia and Iran have to prompt a concerted response intended to protect these countries’ interests,’ he explains.

Political scientist Pavel Danilin points out that the West’s globalist structures are putting a serious strain on China, Russia and Iran’s trade potential. ‘Hence the importance of a dollar-free trading system. The same is true of the new investments in the member states’ industrial development,’ he believes.

The establishment of a huge market covering 45 per cent of the world’s population presupposes the uninterrupted growth of each of the BRICS members.

‘Meanwhile, the other large organisations like the G7 are too busy ensuring the US global dominance. To this end, they are willing to make self-destructive political and economic calls,’ he opines.

The G20 also had a chance to efficiently address these problems, but this forum has too been fixated on political issues as opposed to the global economy. ‘Instead of tackling specific issues, the member states are only discussing the topics that offer no positive outcome whatsoever,’ Denisov agrees.

That explains the willingness of dozens of nations to join BRICS. ‘However, the organisation is currently divided on the expansion prospects. The decision to suspend new memberships makes a lot of sense,’ Denisov adds.

Both experts believe that the BRICS future expansion waves will only be possible once the membership criteria are specified. Before it happens, if the Kazan declaration is anything to go by, BRICS will make a list of partner nations that could be regarded as would-be candidates.

‘At the next stage, the list may include the nations that have already articulated their willingness to join in. This is a large number of international political players,’ says Stanislav Tkachenko, professor of European studies at St. Petersburg State University.

‘The list of these countries must be a trade-off between the further expansion of BRICS and its political significance,’ the expert suggests. ‘It may also help promote growth and create the framework for future member nations. Those added to the list may be able to take part in BRICS official events and some of the organisation’s initiatives.’

The participation in BRICS economic projects will help the candidates ‘derive considerable mutual benefits’. This fact leads to a number of nations seeking to make the partner list now, according to the analyst. In the meantime, the political scientist believes that Russia and the other original members should focus on integrating the latest additions to the club and making sure the format is manageable.

‘Inviting 30 more countries would shatter the existing balance. Even the current members do not seem to share a single vision of the future format. Some may view BRICS as an alternative to the UN, which is suggested by the South African president Cyril Ramaphosa who has recently slammed the UN Security Council,’ Tkachenko points out.

‘Meanwhile, most sovereign nations know full well that BRICS will make it easier for them to protect their independence and ensure economic growth. Both Iran and China are receiving constant threats. Nato is waging a war on Russia. Egypt has faced an attempted coup orchestrated by the CIA. To avoid being ravaged by the US, every country seeks to enlist international support,’ Danilin concludes.

By Andrey Rezchikov, Evgeniy Pozdnyakov

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