The paradigm of global trade is changing in a dramatic pace. If BRICS Summit concluded in New Delhi on March 29 and the agenda set for UNCTAD XIII round scheduled for April are any indication, North- South trade and investment relations could reshape into more engaged and functional South-South cooperation. At least, the efforts of BRICS leaders are passionately directed to that end. The WTO, created at the behest of the developed Western world-read North, now stands at its crossroads of continued existence as originally perceived during re-baptising it from the GATT. After the subprime crisis of USA beginning in 2008 and financial crisis now engulfing Europe have rendered the North not very dependable, and more importantly, less expandable export markets for South, particularly the BRICS’ and other emerging market economies.
Therefore, the 50-point Delhi Declaration and 17-point Plan of Action rehearsed in the fourth BRICS Summit in Delhi have not only intended to explore producers, buyers and sellers within their one economies but also have proposed to set up an investment bank to finance the development seeds of their own and other developing nations. In fact, trade is only the most powerful binding factor of the BRICS, which otherwise consists of five countries—Brazil, Russia, India, China and South Africa— with distinctly varying political systems and more diverse views on openness and respect to democratic values. Nevertheless, the handshake of these leaders representing the 28 per cent of global economy, 40 per cent of the global population and 56 per cent of current global GDP growth component is undoubtedly a solid force to be reckoned with, in shaping the economic future of the world. The BRICS resolve to ‘commit to safeguard’ the WTO system and ‘urge other countries to resist
all forms of trade protectionism and disguised restrictions on trade’, does point finger to existing trade practices in the world and indicates that the trade regime is prone to change sooner than later. It obviously means more fairness in international trade for the developing world. Increase in trade volume among the BRICS, particularly between India and China, should at least in principle, support Nepal’s international trade given her strategic location and large markets on both sides of the international borders. The formality of Nepal’s Trade Policy Review (TPR) concluded in Geneva in March. The government officials trumpeted of ‘immense scope’ of exporting at least three niche products—ginger, pashmina and tea-leaves, again to the North. But in view of changing global trade scenario Nepal’s TPR and export trade focus deserve further reorientations so as to be able to exploit unleashing potentials at the immediate neighbourhood than dancing in fairy dreams of a great distance. When we think that export market for us is only the North, the exportable items will automatically be limited to a few. But if we can think of market just across the border for exports, both at north and south, everything from vegetables, fruits to construction materials like sand, pebbles and forest products, to mention a few, may easily find an instant market. But we need a new vision to see these both, already available and potential markets, mainly in China and India. Viewed thus, the BRICS may be more beneficial for Nepal than WTO.
Therefore, the 50-point Delhi Declaration and 17-point Plan of Action rehearsed in the fourth BRICS Summit in Delhi have not only intended to explore producers, buyers and sellers within their one economies but also have proposed to set up an investment bank to finance the development seeds of their own and other developing nations. In fact, trade is only the most powerful binding factor of the BRICS, which otherwise consists of five countries—Brazil, Russia, India, China and South Africa— with distinctly varying political systems and more diverse views on openness and respect to democratic values. Nevertheless, the handshake of these leaders representing the 28 per cent of global economy, 40 per cent of the global population and 56 per cent of current global GDP growth component is undoubtedly a solid force to be reckoned with, in shaping the economic future of the world. The BRICS resolve to ‘commit to safeguard’ the WTO system and ‘urge other countries to resist
all forms of trade protectionism and disguised restrictions on trade’, does point finger to existing trade practices in the world and indicates that the trade regime is prone to change sooner than later. It obviously means more fairness in international trade for the developing world. Increase in trade volume among the BRICS, particularly between India and China, should at least in principle, support Nepal’s international trade given her strategic location and large markets on both sides of the international borders. The formality of Nepal’s Trade Policy Review (TPR) concluded in Geneva in March. The government officials trumpeted of ‘immense scope’ of exporting at least three niche products—ginger, pashmina and tea-leaves, again to the North. But in view of changing global trade scenario Nepal’s TPR and export trade focus deserve further reorientations so as to be able to exploit unleashing potentials at the immediate neighbourhood than dancing in fairy dreams of a great distance. When we think that export market for us is only the North, the exportable items will automatically be limited to a few. But if we can think of market just across the border for exports, both at north and south, everything from vegetables, fruits to construction materials like sand, pebbles and forest products, to mention a few, may easily find an instant market. But we need a new vision to see these both, already available and potential markets, mainly in China and India. Viewed thus, the BRICS may be more beneficial for Nepal than WTO.
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