Brazil hosts BRICS summit, eager to avoid provoking Trump's ire
Analysts and diplomats said the lack of cohesion in an enlarged BRICS, which doubled in size last year, may affect its ability to become another pole in world affairs. They also see the summit's moderate agenda as an attempt by member countries to stay off Trump's radar.
Brazilian President Luiz Inácio Lula da Silva will have some of his priorities, such as debates on artificial intelligence and climate change, front and center for the talks with key leaders not in attendance. China's President Xi Jinping won't attend a BRICS summit for the first time since he became his country's leader in 2012. Russian President Vladimir Putin, who will make an appearance via videoconference, continues to mostly avoid traveling abroad due to an international arrest warrant issued after Russia invaded Ukraine.
Debate over language on hot-button topics
The restraint expected in Rio de Janeiro marks a departure from last year's summit hosted by Russia in Kazan, when the Kremlin sought to develop alternatives to US-dominated payment systems which would allow it to dodge Western sanctions imposed after Russia's full-scale invasion of Ukraine in February 2022.
A source involved in the negotiations told journalists Friday that some members of the group want more aggressive language on the situation in Gaza and Israel's attack on Iran. The source spoke under the condition of anonymity because they were not authorized to speak about the matter publicly.
Consequently, observers expect a vague final declaration regarding Russia's war in Ukraine and conflicts in the Middle East.
As well as suiting Brazil, a watered-down and non-controversial statement may be made easier by the absences of Putin and Xi, Stuenkel said. Those two countries have pushed for a stronger anti-Western stance, as opposed to Brazil and India that prefer non-alignment.
Brazil skittish in light of Trump tariffs
Brazil, the country that chairs the bloc, has picked six strategic priorities for the summit: global cooperation in healthcare; trade, investment and finance; climate change; governance for artificial intelligence; peace-making and security; and institutional development. While Brazil will continue to advocate for the reform of Western-led global institutions, a cornerstone policy of the group, the country wants to avoid becoming the target of tariffs – a predicament it has so far largely escaped. Trump has threatened to impose 100% tariffs against the bloc if they take any moves to undermine the dollar.
Other leaders shun the summit
Iranian President Masoud Pezeshkian and Egypt's Abdel-Fattah el-Sissi will also be absent. Those two countries joined the BRICS in 2024, alongside Ethiopia, Indonesia and the United Arab Emirates. Saudi Arabia has been invited and is participating in member discussions, but it has yet to send its confirmation letter.
Help us improve Le Monde in English
Dear reader,
We'd love to hear your thoughts on Le Monde in English! Take this quick survey to help us improve it for you.
As well as new members, the bloc has 10 strategic partner countries, a category created at last year's summit that includes Belarus, Cuba and Vietnam. That rapid expansion led Brazil to put housekeeping issues, officially termed institutional development, on the agenda to better integrate new members and boost internal cohesion.
Despite notable absences, the summit is important for attendees, especially in the context of instability provoked by Trump's tariff wars, said Bruce Scheidl, a researcher at the University of Sao Paulo's BRICS study group..
For Lula, the summit will be a welcome pause from a difficult domestic scenario, marked by a drop in popularity and conflict with Congress. The meeting also represents an opportunity to advance climate negotiations and commitments on protecting the environment before November's COP 30 climate talks in the Amazonian city of Belem.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Euronews
18 minutes ago
- Euronews
Steinmeier in Vilnius: Your security is our security
During a visit to Vilnius on Sunday, German President Frank-Walter Steinmeier pledged his country's support in maintaining Lithuania's freedom. President Frank-Walter Steinmeier who's visisted came as Lithuania celebrated Statehood day reiterated that "your security is our security". "Lithuania and Germany stand together for the freedom of Ukraine, for the principle of self-determination, for European unity - as partners in the EU and NATO," said Steinmeier. President Gitanas Nausėda welcomed his German counterpart on Sunday and took to social media platform X to express his gratitude for the visit. "The President's visit is a strong sign of the enduring friendship between Lithuania and Germany, based on shared values and strategic partnership," said Nausėda. The two countries have recently strengthened their military ties as Germany's new Chancellor Friedrich Merz looks to deliver on his campaign promises of bolstering continental security in the wake of Russian threats stemming from its full-scale invasion of Ukraine in February 2022. From 2027, approximately 5,000 German soldiers from an armoured brigade will be permanently stationed in Lithuania to protect NATO's eastern flank and the Baltic country from Russia, whom it shares an almost 300 kilometre border with. With the ongoing war in Ukraine, many in Lithuania, previously a Soviet satellite state, believe they could become the next targets of Russian President Vladimir Putin's expansionist mission. Steinmeier acknowledged Lithuania's concerns, noting that "here in Lithuania you know that neither freedom nor peace is guaranteed. Freedom is not a condition. Freedom is a task."
Fashion Network
21 minutes ago
- Fashion Network
Investors head into Trump tariff deadline benumbed and blase
And they are not overly concerned. 'The market has gotten much more comfortable, more sanguine, when it comes to tariff news,' said Jeff Blazek, co-chief investment officer of multi-asset at Neuberger Berman in New York. 'The markets think that there is enough 'squishiness' in the deadlines – absent any major surprise – to not be too unsettled by more tariff news and believe that the worst-case scenarios are off the table now.' Both the tariff levels and effective dates have become moving targets. Trump said on Friday that tariffs ranging up to 70% could go into effect on August 1, levels far higher than the 10%-50% range he announced in April. So far, the U.S. administration has a limited deal with Britain and an in-principle agreement with Vietnam. Deals that had been anticipated with India and Japan have failed to materialize, and there have been setbacks in talks with the European Union. World stocks are meanwhile at record highs, up 11% since April 2. They fell 14% in three trading sessions after that announcement but have since rallied 24%. "If Liberation Day was the earthquake, the tariff letters will be the aftershocks. They won't quite have the same impact on markets even if they are higher than the earlier 10%," said Rong Ren Goh, a portfolio manager in the fixed income team at Eastspring Investments in Singapore. "This financial system is so inundated with liquidity that it is hard to cash up or delever at the risk of lagging the markets, with April serving as a painful reminder for many who derisked and were then forced to chase the relentless recovery in the subsequent weeks." Investors have also been distracted by weeks of wrangling in Congress over Trump's massive tax and spending package, which he signed into law on Friday. Stock markets have celebrated the passage of the bill, which makes Trump's 2017 tax cuts permanent, while bond investors are wary the measures could add more than $3 trillion to the nation's $36.2 trillion debt. The S&P 500 and Nasdaq indexes closed at record highs on Friday, notching a third week of gains. Europe's STOXX 600 benchmark is up 9% in three months. But the risks of tariff-related inflation have weighed on U.S. Treasuries and the dollar, and jostled expectations for Federal Reserve policy. Rate futures show traders no longer expect a Fed rate cut this month and are pricing in a total of just two quarter-point reductions by year-end. The dollar has suffered a knock to its haven reputation from the dithering on tariffs. The dollar index, which reflects the U.S. currency's performance against a basket of six others, has had its worst first half of the year since 1973, declining some 11%. It has fallen by 6.6% since April 2 alone. "The markets are discounting a return to tariff levels of 35%, 40% or higher, and anticipating an across-the-board level of 10% or so,' said John Pantekidis, chief investment officer at TwinFocus in Boston. Pantekidis is cautiously optimistic about the outlook for U.S. stocks this year, but the one variable he is watching closely is interest rate levels. For now he expects to see interest rates dip in the second half, 'but if the bond market worries about the impact of the bill and rates go up, that's a different scenario.'
Fashion Network
an hour ago
- Fashion Network
Investors head into Trump tariff deadline benumbed and blase
And they are not overly concerned. 'The market has gotten much more comfortable, more sanguine, when it comes to tariff news,' said Jeff Blazek, co-chief investment officer of multi-asset at Neuberger Berman in New York. 'The markets think that there is enough 'squishiness' in the deadlines – absent any major surprise – to not be too unsettled by more tariff news and believe that the worst-case scenarios are off the table now.' Both the tariff levels and effective dates have become moving targets. Trump said on Friday that tariffs ranging up to 70% could go into effect on August 1, levels far higher than the 10%-50% range he announced in April. So far, the U.S. administration has a limited deal with Britain and an in-principle agreement with Vietnam. Deals that had been anticipated with India and Japan have failed to materialize, and there have been setbacks in talks with the European Union. World stocks are meanwhile at record highs, up 11% since April 2. They fell 14% in three trading sessions after that announcement but have since rallied 24%. "If Liberation Day was the earthquake, the tariff letters will be the aftershocks. They won't quite have the same impact on markets even if they are higher than the earlier 10%," said Rong Ren Goh, a portfolio manager in the fixed income team at Eastspring Investments in Singapore. "This financial system is so inundated with liquidity that it is hard to cash up or delever at the risk of lagging the markets, with April serving as a painful reminder for many who derisked and were then forced to chase the relentless recovery in the subsequent weeks." Investors have also been distracted by weeks of wrangling in Congress over Trump's massive tax and spending package, which he signed into law on Friday. Stock markets have celebrated the passage of the bill, which makes Trump's 2017 tax cuts permanent, while bond investors are wary the measures could add more than $3 trillion to the nation's $36.2 trillion debt. The S&P 500 and Nasdaq indexes closed at record highs on Friday, notching a third week of gains. Europe's STOXX 600 benchmark is up 9% in three months. But the risks of tariff-related inflation have weighed on U.S. Treasuries and the dollar, and jostled expectations for Federal Reserve policy. Rate futures show traders no longer expect a Fed rate cut this month and are pricing in a total of just two quarter-point reductions by year-end. The dollar has suffered a knock to its haven reputation from the dithering on tariffs. The dollar index, which reflects the U.S. currency's performance against a basket of six others, has had its worst first half of the year since 1973, declining some 11%. It has fallen by 6.6% since April 2 alone. "The markets are discounting a return to tariff levels of 35%, 40% or higher, and anticipating an across-the-board level of 10% or so,' said John Pantekidis, chief investment officer at TwinFocus in Boston. Pantekidis is cautiously optimistic about the outlook for U.S. stocks this year, but the one variable he is watching closely is interest rate levels. For now he expects to see interest rates dip in the second half, 'but if the bond market worries about the impact of the bill and rates go up, that's a different scenario.'
