BRICS Chancellers defend use of local currencies and criticize unilateral trade measures

The foreign ministers of the countries that are part of BRICS defended on Tuesday, 29, the expanded use of local coins in business transactions between the bloc countries and their external partners. The position was registered in a statement issued by the Brazilian presidency of the group, after a meeting held in Rio de Janeiro.

The meeting brought together representatives of South Africa, Saudi Arabia, Brazil, China, Egypt, United Arab Emirates, Ethiopia, Indonesia, India, Iran and Russia. This was the first ministerial meeting since the block expansion, and did not result in a joint statement.

According to Brazil’s Foreign Minister, Mauro Vieira, the lack of consensus among the members prevented the elaboration of a single document, which led to the dissemination of a text only by the Brazilian presidency.

The statement points out that the chancelors reaffirmed their commitment to the strengthening of the World Trade Organization (WTO), classified as the “only multilateral institution with the mandate necessary to establish the rules of the multilateral trade system”.

Also according to the document, the ministers emphasized “the importance of the expanded use of local currencies in commercial and financial compensation between the BRICS countries and their business partners.” This initiative aims to reduce dependence on the US dollar and facilitate the exchange between the group’s economies.

In addition, the chancelors expressed concern about the growth of unilateral trade practices.

“The ministers expressed serious concerns about increasing unilateral unilateral protectionist measures, inconsistent with WTO rules, including the indiscriminate increase in tariff and non -tariff measures and the abusive use of green policies for protectionist purposes. They warned that these measures cause disturbances in the global supply chain and bring more uncertainty to the global economy,” the statement says.

The text does not directly mention specific countries, but criticism was interpreted as a reference to the US-adopted trade policies, especially during the government of former President Donald Trump.

During his administration, Trump imposed high import tariffs to various countries, including a 145% tariff on Chinese products, as well as threats similar to other BRICS members.

Although there are speculation about the creation of a common currency for transactions between the bloc countries, the proposal is not formally under discussion at this time.

According to Reuters report published in February, the group seeks ways to expand intra-bric trade through the use of national currencies and cost reduction in international transactions, but without a single currency.

After the meeting in Rio, Mauro Vieira said at a news conference that the absence of consensus on a joint text does not compromise negotiations.

“It was made the option for the declaration of the Brazilian presidency to leave the path open to negotiation of a joint and final statement in the leader of BRICS leaders in July, also in the state capital,” said the chancellor.

Tuesday’s meeting was marked by signs of divergence among the bloc members, a reflection of the recent expansion of BRICS, which now includes countries with different agendas and priorities.

The statement also points to indirect criticism of environmental policies of other economic blocks. “The ministers expressed concern about the abuse of green policies for protectionist purposes,” says the text.

According to a diplomatic source heard by Reuters, this passage refers to environmental measures adopted by the European Union that impact exporting countries such as Brazil.

Such requirements include traceability rules and sustainability criteria that can function as commercial barriers, even without formally tariff.

The expectation now turns to the next Brics State Chef Summit, scheduled for July, in Rio de Janeiro. The Brazilian government hopes that, by then, it will be possible to build an understanding among members to adopt a joint statement with consensual positions on trade, currency and global governance.