Trade and financial cooperation between BRICS countries (Brazil, Russia, India, China and South Africa) should be enhanced, in order to counter the slowdown of developed economies and drops in FDI inflow, participants agreed at the 2nd Economic and Financial Forum of BRICS Countries held on Thursday in Beijing.
Wang Jinzhen, vice chairman of China Council for the Promotion of International Trade, remarks at the 2nd Economic and Financial Forum of BRICS Countries held on Oct. 31 in Beijing. [Photo by Pei Xiaoge/ce.cn] |
The trade volume among BRICS members has increased by 15 times in the past decade and their GDP and trade volumes accounted for 20 percent of the global total, but compared with the proportions of population and territories of the BRICS countries, these figures leave much to be desired, said Wang Jinzhen, vice chairman of China Council for the Promotion of International Trade.
By 2012, bilateral trade between China and other BRICS countries reached US$300.3 billion, only 7.8 percent of China's total imports and exports. None of the other four BRICS countries are in the top ten countries investing in China. Wang called for government and business leaders in BRICS countries to create a favorable investment environment and enhance business exchange to deepen and consolidate trade and cooperation.
Jin Zhongxia, director of the Financial Research Institute at the People's Bank of China delivers a speech at the 2nd Economic and Financial Forum of BRICS Countries held on Oct. 31 in Beijing. [Photo by Pei Xiaoge/ce.cn] |
To better tap their mutual market potential, BRICS member countries should sign bilateral or multilateral trade and investment facilitation agreements, said Jin Zhongxia, director of the Financial Research Institute at the People's Bank of China. He proposed to lower tariffs further and open a capital account for direct investment and securities investment between BRICS countries. The launch of the Shanghai Free Trade Zone is a good move by China in this field.
Jin observed that developed economies are busy in negotiating with each other or establishing partnerships for trade and investment with developing countries, such as the Trans -Pacific Partnership Agreement and Transatlantic Trade and Investment Partnership, which BRICS countries engage in a little. If BRICS members can not start right now to enhance cooperation, they will be marginalized gradually in the global market, he said.
Jin also suggested financial cooperation between BRICS countries by establishing a home currency transaction system, enhancing policy coordination on short-term capital flow and lowering the admittance threshold to other members' financial institutes.
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