Leaders of growing Brics group gather for Rio summit
With forums such as the G7 and G20 groups of major economies hamstrung by divisions and the disruptive 'America First' approach of US President Donald Trump, expansion of the Brics has opened new space for diplomatic co-ordination.
'In the face of the resurgence of protectionism, it is up to emerging nations to defend the multilateral trade regime and reform the international financial architecture,' Brazilian President Luiz Inacio Lula da Silva told a Brics business forum on Saturday.
Brics nations now represent more than half the world's population and 40% of its economic output, Lula noted.
The Brics group gathered leaders from Brazil, Russia, India and China at its first summit in 2009. The bloc later added South Africa and last year included Egypt, Ethiopia, Indonesia, Iran, Saudi Arabia and the United Arab Emirates as full members. This is the first leaders' summit to include Indonesia.
'The vacuum left by others ends up being filled almost instantly by the Brics,' said a Brazilian diplomat who asked not to be named. Though the G7 still concentrates vast power, the source added, 'it doesn't have the predominance it once did'.
However, there are questions about the shared goals of an increasingly heterogenous Brics group, which has grown to include regional rivals along with major emerging economies.
Stealing some thunder from this year's summit, Chinese President Xi Jinping chose to send his prime minister in his place. Russian President Vladimir Putin is attending online due to an arrest warrant from the International Criminal Court.
Still, many heads of state will gather for discussions at Rio's Museum of Modern Art on Sunday and Monday, including Indian Prime Minister Narendra Modi and South African President Cyril Ramaphosa.
Over 30 nations have expressed interest in participating in the Brics, either as full members or partners.
Brazil, which also hosts the UN climate summit in November, has seized on both gatherings to highlight how seriously developing nations are tackling climate change, while Trump has slammed the brakes on US climate initiatives.
Both China and the UAE signalled in meetings with Brazilian finance minister Fernando Haddad in Rio that they plan to invest in a proposed Tropical Forests Forever Facility, according to two sources with knowledge of the discussions about funding conservation of endangered forests around the world.
Expansion of the Brics has added diplomatic weight to the gathering, which aspires to speak for developing nations across the Global South, strengthening calls for reforming global institutions such as the UN Security Council and the International Monetary Fund.
The growth of the bloc has also increased the challenges to reaching consensus on contentious geopolitical issues.
Ahead of the summit, negotiators struggled to find shared language for a joint statement about the bombardment of Gaza, the Israel-Iran conflict and a proposed reform of the Security Council, said two of the sources, who requested anonymity to speak openly.
To overcome differences among African nations regarding the continent's proposed representative to a reformed Security Council, the group agreed to endorse seats for Brazil and India while leaving open which country should represent Africa's interests, a person familiar with the talks told Reuters.
The Brics will also continue their thinly veiled criticism of Trump's US tariff policy. At an April ministerial meeting, the bloc expressed concern about 'unjustified unilateral protectionist measures, including the indiscriminate increase of reciprocal tariffs'.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
27 minutes ago
- TimesLIVE
Japan, South Korea face 25% tariffs as Trump ramps up trade war in letters to leaders
US President Donald Trump opened a new phase on Monday in the trade war he launched this year, telling partners, from powerhouse suppliers such as Japan and South Korea to minor players, that they face sharply higher tariffs from August 1. The imposition of a levy of 25% on US importers of all goods from key allies Japan and South Korea rattled Wall Street, with the S&P 500 Index knocked back sharply, though markets in Asia were taking the news in stride. In letters to 14 countries, Trump hinted at opportunities for additional negotiations while warning reprisals would draw a like-for-like response. "If, for any reason, you decide to raise your tariffs, whatever the number you choose to raise them by will be added on to the 25% we charge," Trump told Japan and South Korea in letters released on his Truth Social platform. The higher tariffs take effect from August 1, and notably will not combine with previously announced sectoral tariffs, such as those on automobiles and steel and aluminium. Countries have been under pressure to conclude deals with the US after Trump unleashed a global trade war in April that roiled financial markets and sent policymakers scrambling to protect their economies. Trading partners received another reprieve as Trump signed an executive order on Monday extending to August 1 the Wednesday deadline for negotiations. Asked if the deadline was firm, Trump replied: "I would say firm, but not 100% firm. If they call and they say we'd like to do something in a different way, we're going to be open to that."
IOL News
33 minutes ago
- IOL News
Rand fairly stable after Trump tariff shock in early morning trade Tuesday
US President Donald Trump imposes 30% tariffs on South Africa. Image: White House The rand weakened marginally overnight after US President Donald Trump slapped South Africa with 30% tariffs on goods exported to America, based on an alleged trade imbalance, although there may be more volatility to come. Having reached R17.73 at 5pm South African time on Monday, it dropped 0.7% as Trump made his shocking announcement in the US. However, by 6am Tuesday morning, it had recovered to R17.79, suggesting that markets had mostly priced in a resumption of tariffs ahead of Trump's initial July 9 deadline. South Africa's rand weakened marginally overnight on Tuesday after Trump imposed 30% tariffs. Image: Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading Trump, who has vacillated in terms of taxes and trade deals, initially announced a 30% trade duty on South Africa's exports on his so-called 'Liberation Day' on April 2 before walking back his move in response to a massive hit on US markets. Having then decided that import taxes would stay at 10% for 90 days, he has been negotiating trade deals with several countries, although only China, the UK, and Vietnam had inked agreements as of last week. South Africa has failed to sign a deal so far. Trump has taken particular umbrage with countries in the BRICS bloc, having said on his social media platform, Truth Social, that countries 'aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.' Old Mutual chief economist, Johann Els, said that Trump's decision to impose 30% tariffs on all South African exports to the US, excluding precious metals is 'contrary to expectations after President [Cyril] Ramaphosa's White House visit and comes as a disappointment.'. In a voice note shared at 10pm, Els added that 'even though it will have a negative impact on South Africa's economy in terms of GDP growth, I think to a large extent the impact has been priced in since the April 2 announcement of 'Liberation Day' tariffs.' Els added that less than 8% of South Africa's exports goes to the US. 'I suspect that some of our exporters have already found some alternative export markets. Nevertheless, it is a negative and it will impact negatively on sentiment, even though some of it might have been priced in.' Trump, who has vacillated in terms of taxes and trade deals, initially announced a 30% trade duty on South Africa's exports on his so-called 'Liberation Day' on April 2 before walking back his move in response to a massive hit on US markets. Having then decided that import taxes would stay at 10% for 90 days, he has been negotiating trade deals with several countries, although only China, the UK, and Vietnam had inked agreements as of last week. South Africa has failed to sign a deal so far. Trump has taken particular umbrage with countries in the BRICS bloc, having said on his social media platform, Truth Social, that countries 'aligning themselves with the Anti-American policies of BRICS, will be charged an ADDITIONAL 10% Tariff. There will be no exceptions to this policy.' Old Mutual chief economist, Johann Els, said that Trump's decision to impose 30% tariffs on all South African exports to the US, excluding precious metals is 'is contrary to expectations after President [Cyril] Ramaphosa's White House visit and comes as a disappointment'. In a voice note shared at 10pm, Els added that 'even though it will have a negative impact on South Africa's economy in terms of GDP growth, I think to a large extent the impact has been priced in since the April 2 announcement of 'Liberation Day' tariffs.' Els added that less than 8% of South Africa's exports goes to the US. 'I suspect that some of our exporters have already found some alternative export markets. Nevertheless, it is a negative and it will impact negatively on sentiment, even though some of it might have been priced in.'
IOL News
an hour ago
- IOL News
"Accelerate diversification": Ramaphosa issues code red amidst Trump's 30% tariffs
US President Donald Trump hands papers to President Cyril Ramaphosa during a meeting in the Oval Office of the White House in Washington. Image: AFP President Cyril Ramaphosa has urged the government trade negotiations teams and South African companies to accelerate their diversification efforts after the United States slapped South Africa with 30% tariffs on all its exports to the United States from August 1. The sweeping tariffs will apply to 'any and all South African products sent into the United States,' and are being imposed outside of any sectoral trade deals. In a letter dated July 7, US President Donald Trump said the move was 'necessary to correct the many years of South Africa's Tariff, and Non Tariff, Policies and Trade Barriers,' blaming Pretoria for what he called 'unsustainable Trade Deficits against the United States.' In response in the early hours on Tuesday, Ramaphosa said he had noted the correspondence from Trump on the unilateral imposition of a 30% trade tariff against South Africa. Through the Presidency spokesperson Vincent Magwenya, Ramaphosa said he had further noted that South Africa was one of a number of countries to have received this communication on 7 July 2025. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad Loading 'This 30% tariff is based on a particular interpretation of the balance of trade between South Africa and the United States. This contested interpretation forms part of the issues under consideration by the negotiating teams from South Africa and the United States,' said the Presidency. 'Accordingly, South Africa maintains that the 30% reciprocal tariff is not an accurate representation of available trade data. In our interpretation of the available trade data, the average tariff imported goods entering South Africa stands at 7.6%. Importantly, 56% of goods enter South Africa at 0% most favoured nation tariff, with 77% of US goods entering the South African market under the 0% duty.' In June 2023, the US ranked second largest destination for South Africa's exports after China and followed by the UK. Major South African exports to the U.S. include: Precious stones and metals, motor vehicles, parts and accessories; iron and steel, machinery; aluminium products, ores , organic chemicals, edible fruit, chemical products and nickel products. According to the Office of the US Trade Representative, US goods exports to South Africa in 2024 were $5.8 billion, down 18.3% from 2023 while US goods imports from South Africa were up 4.9% to $14.7bn during the same period. As a result, the US goods trade deficit with South Africa was $8.8bn in 2024, a 29% increase from $2bn over 2023. Trump said the US' relationship with South Africa has been 'unfortunately, far from reciprocal'. 'Starting on August 1, 2025, we will charge South Africa a Tariff of only 30%... Goods transshipped to evade a higher Tariff will be subject to that higher Tariff.' Trump also warned that if South Africa were to retaliate by raising its own tariffs, those would be matched and added to by Washington. 'Whatever the number you choose to raise them by, will be added onto the 30% that we charge,' he wrote. 'This Deficit is a major threat to our Economy and, indeed, our National Security!' Meanwhile, the Presidency said South Africa will continue with its diplomatic efforts towards a more balanced and mutually beneficial trade relationship with the US. It said Ramaphosa has instructed the country's negotiating team to urgently engage with the US on the basis of the Framework Deal that South Africa submitted to the US on 20 May 2025.
