Like Trump, SA minister points out trade imbalances to partner countries
Davies |
South Africa Minister of Trade
and Industry, Dr Rob Davies, has said more business-to-business projects are
needed to drive economic cooperation amongst BRICS countries that include
Brazil, Russia, India, China and South Africa.
Davies made the demand during the
investments opportunities session on the first day of the 6th annual meeting of
BRICS Business Council in Durban.
“It is important to emphasise
that we need to identify many more practical business-to-business projects for
implementation as a way of driving forward our economic cooperation and
intra-BRICS business cooperation. BRICS as a block is of strategic importance
in the current global environment that we find ourselves in today. We have
entered a period of turbulence in the global trading system,” he said.
He attributed the turbulence to
the largest and most powerful economy of the world which he said was raising
tariffs in violation of a whole lot of trade agreements or arrangements they
may have with different countries, and doing it on a discriminatory basis in
violation of the World Trade Organisation principles.
“These actions are accompanied by
growing disdain for multilateralism and global trade rules. I think at the end
of the day this is all about setting a call for a rebalancing of the global
trade environment to the perceived advantage of the individual country and
without any sense whatsoever of being in the interest of the global economy,
inclusive development or anything of that sort,” he stressed.
He added that the global world
economic environment was also characterised by the 4th Industrial Revolution
which will have far-reaching implications and impact.
“The presence of these new
technologies that are already here is going to be felt exponentially and
disruptively across the world. The artificial intelligence and all of the new
technologies are happening in the context of the world where there is huge
inequality and the winner-takes-all markets.
We need to work together and support each other to ensure that these
technologies achieve their positive potential to increase global productivity
and create a better life for many citizens of the world,” appealed Davies.
He emphasised that BRICS had
become an incredibly important and strategic institution as a third of the
world’s population resides in the BRICS countries and the block contributes 22%
of the world’s Gross Domestic Product.
He added that South Africa’s
trade relations with other BRICS states had increased significantly to the extent
that China had become SA’s number one trading partner in the world as a source
of imports and a destination of exports.
“India is in the top six while
Russia and Brazil are lower down but have come up very significantly from where
they used to be. If you look at our investment relationship, we can see that
there has been less progress in regard to what we have recorded. The inflow of
BRICS investments into the South African economy between 2003 and 2017 is
nearly US$18bn. On the positive side there have been 189 projects that have
created 36,850 jobs. That is a significant figure. But between 2001 and 2016
South Africa invested US$68 billion in other BRICS countries,” complained
Davies, probably borrowing a leaf from US President Donald Trump’s book of
pointing out trade imbalances.
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