1. The 6th
meeting of the BRICS Trade Ministers was held on 13 October, 2016 in New Delhi on
the threshold of the 8th BRICS Summit on 15-16 October, 2016 in Goa,
India. The Meeting was preceded by the 13th meeting of the BRICS
Contact Group on Economic and Trade Issues (CGETI) which was held from 11-12
October, 2016. The Trade Ministers meeting made an assessment of the BRICS
economic scenario in relation to areas of cooperation on trade and investment.
The Ministers appreciated the work carried out by BRICS Members during 2016 and
urged that this momentum be sustained.
Global Economic
Development
2. The global
economic order in 2016 has been shaped by a number of key economic
developments such as continued slowdown in global growth and depressed global
demand, low commodity and oil prices; new shocks to the global economy,
including BREXIT; volatility in the equity and currency markets; strains on the
banking sector; political turmoil in some parts of the globe etc. Given this
scenario, the Ministers noted that the October, 2016 World Economic Outlook Update
of the International Monetary Fund projected the global economic growth
forecasts for 2016 and 2017 at 3.1% and 3.4% respectively. The Ministers are
of the view that the projected growth rates for 2017 in the Outlook for BRICS
countries augurs well when compared with 2016.
3 Ministers
recognized the importance of preserving policy space to promote industrialization,
industrial upgrading and value addition as a core pillar for structural
transformation and sustainable development and BRICS countries integration into
the global economy. They agreed to enhance cooperation in this regard.
The Strategy for BRICS
Economic Partnership
4 The Ministers
appreciated the progress in the realization of the Strategy for BRICS Economic
Partnership. They directed the CGETI to put forth initiatives and proposals towards
the implementation of the Trade and Investment section of the Strategy at the
earliest. The Ministers agreed that close cooperation among the CGETI, the
BRICS Business Council and New Development Bank is useful for implementing and bringing
the BRICS Economic Cooperation to a new high quality level.
Micro Small and Medium
Enterprises (MSMEs)
5. The Ministers
recognised the importance of the Micro, Small and Medium Enterprises (MSME) to
the balanced economic development of the BRICS countries. The Ministers
acknowledge the role of MSMEs as the engines of export led growth and
employment generation given the highest rate of employment per unit of
investment in MSMEs; and their crucial role in addressing regional disparity
and poverty alleviation. The MSME sector in many of the BRICS economies
contribute directly or indirectly to nearly half of their exports,
manufacturing output and GDP.
6. The Ministers
were cognisant of the impediments faced by MSMEs and the need for cooperation
among the BRICS countries to effectively address the barriers to trade and
investment amongst the MSMEs.
7. With a view
to ensuring greater business engagement amongst MSMEs in the BRICS region, the
Ministers emphasised the importance of developing cooperation among
MSMEs in the crucial areas of trade and investment. This cooperation can be in
the form of exchange of information on the regulatory framework, rules, regulations
and good regulatory practises governing MSMEs; interface among the major
chambers of commerce and industry of the MSMEs; and participation of MSME
stakeholders in BRICS economic events such as trade fairs, conferences,
seminars etc.
8. The Ministers
welcome continued efforts to foster cooperation and facilitate exchange of
experiences between BRICS countries on MSMEs. In this regard, They welcome the “BRICS
Micro Small and Medium Enterprises (MSME) Cooperation Framework” which encourages
MSMEs in BRICS to strengthen mutually beneficial commercial relationship. The Framework
sets the agenda of cooperation on SMEs by the BRICS countries. The Ministers
look forward to constructive engagement on the elements of the cooperation
framework by all BRICS Members in the future.
BRICS Business
Council and economic cooperation
10. BRICS Trade
Ministers considered the continuing role of the BRICS Business Council (BBC)
and emphasised the need for the Council to focus on the development and
realization of joint projects which would on a mutually beneficial basis
contribute to the economic development objectives of BRICS Members. To this
end, Trade Ministers urged the BBC to speed up the development of the BRICS
Roadmap for Trade, Economic and Investment Cooperation while identifying
and implementing suitable projects. In addition, the Council is encouraged to
advance key projects as presented by all Member countries. In order to
coordinate and advance the BRICS agenda on economic issues, regular engagement
by the BBC with BRICS Trade Ministers, as well as the Contact Group on Trade
and Economic Issues (CGETI) was requested.
Non-tariff measures
(NTM)
11. The Ministers emphasized
that the increase in NTMs constrain the participation of developing countries
in global trade. The Ministers commended the CGETI for developing a working
document on ‘BRICS Mechanism for NTM Resolution. The Ministers agreed in
principle to the concepts in the Mechanism and urged the CGETI to advance
this work including on the issue of scope.
Standards
12. The Ministers endorsed
the “Framework for Cooperation on Standardisation that was agreed to by
the CGETI. The Ministers urged the CGETI to work on the elements of the
Framework with a view to ensuring that the cooperation leads to a better understanding
of each other standards. The Framework aims to promote a better understanding
and an open dialogue among BRICS countries in this area.
.
Services:
15. The Ministers
recognised that the Services sector remains important and contributes to more
than half of the GDP of many BRICS countries. Since the services sector is of
interest for BRICS economies, it is important for the group to cooperate with
the aim of promoting complementarities on services trade. The Ministers
highlighted the importance of facilitating expansion of trade in services by
addressing existing barriers. The Ministers endorsed the “Framework for
Cooperation on Trade in Services”.
Trade Promotion
17. The Ministers
expressed their appreciation that India is holding the 1st BRICS
Trade Fair from 12-14 October, 2016 in New Delhi. This Fair is an opportunity
for stakeholders in the BRICS region to explore and expand business
opportunities and networks. The theme of the Fair namely “Building
Responsive, Inclusive and Collective Solutions” is apt in ensuring that the
BRICS region as a whole benefits from such events. The focus areas and the showcasing
of technologies are important in the context of ensuring a commercially
meaningful participation in the Fair. The Ministers welcome the idea of CGETI
discussing the possibility of holding BRICS Trade Fairs on a regular basis.
18. The Ministers
noted that the BRICS Trade Promotion Working Group would create a forum for the
Trade Promotion Agencies in the BRICS region to interface towards the promotion
of value added trade which would also support integration into global value
chains. It is vital that these agencies co-ordinate in other trade and
investment events so that the BRICS value added products and
services can be showcased more effectively. The Ministers instructed the
working group to effectively coordinate activities] so as to ensure that the
BRICS stakeholders can benefit from the participation in such events.
Single
Window
19. The
Ministers noted that Article 10.4 of the WTO Agreement on Trade Facilitation
instructs that WTO Members shall endeavour to establish or maintain a single
window. They also appreciated the work being carried out in the BRICS countries
for development of national single windows . These would facilitate both
exporters and importers who would then need a single point interface for all
their clearances.
20. The Ministers
endorsed the “Framework for BRICS Single Window Cooperation” and
underlined the importance of closer cooperation among the BRICS countries in
the development of their national single windows. They emphasised the need for
BRICS countries to operationalize the Framework based on the Guiding
Principles, Objectives and Priorities for Cooperation.
IPR Cooperation
21. The Ministers
highlighted the importance of cooperation on intellectual property rights (IPR)
towards the development of a BRICS perspective that will be informed by their national
priorities. In this context, they appreciate the formation of and endorse the
BRICS IPR Cooperation Mechanism (IPRCM). They also took note of the existing
cooperation mechanism at the level of Heads of Intellectual Property Offices
(HIPO). The Ministers urge both the HIPO and IPRCM to co-ordinate and avoid
duplication of their work. They instruct the IPRCM to commence their work on
the terms of reference decided upon and endeavor to advance cooperation in a
more systematic and coordinated manner.
E-commerce
22. The Ministers reiterated the
importance of strengthening
intra-BRICS cooperation on E-commerce and appreciated the
progress achieved since the adoption of the Framework for BRICS
E-commerce Cooperation in 2015. The Ministers have emphasized the need
for cooperation to boost [e-commerce development in the BRICS countries,
enhance capacity building and promote cooperation on infrastructure
23. The Ministers
emphasized that the development potential of e-commerce is not fully realized
and in this regard they directed the CGETI to implement all areas of the
Framework and explore cooperation in areas of common interests. The Ministers
took note of the proposal to conduct a joint study to promote areas of common
interest in e-commerce and stressed the importance of enhancing the BRICS
countries understanding on e-commerce.
BRICS cooperation in the
WTO
24. The
Ministers reiterated the support for the multilateral trading system and the
centrality of the WTO in providing a rules based, transparent, non-discriminatory
and inclusive global trading system. The Ministers emphasized the importance
of implementing the decisions taken at the Bali and Nairobi Ministerial
Conferences. They stressed the need to advance negotiations on the remaining
DDA issues as a matter of priority. They called on all WTO members to work
together with a sense of urgency and solidarity to ensure a strong development
oriented outcome for MC 11 and beyond.
BRICS and the G-20
25. The
Ministers commended the work done by China in its current Presidency of the
G20. They emphasized the importance of BRICS Members’ coordination in
the G-20. They welcomed the outcomes of G20 Hangzhou Summit and emphasized the
importance of continued efforts to implement those outcomes. They also
underlined the importance of the G20 Trade and Investment Working Group (TIWG)
in addressing various issues confronting the G20 economies and the call for
further collaboration under this framework.
MJPS