OREANDA-NEWS. 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.

1. 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

  1. 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)

  1. 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.
  2. 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.
  3. 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.
  4. 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.