Media: BRICS calls for unified front against US trade tariffs

US tariff policies have disrupted the global economy and put pressure on trade networks, requiring the BRICS nations and other emerging economies to enhance regional cooperation and utilise multilateral frameworks to protect their interests amid unilateral actions.

Thus, Brazilian Foreign Minister Mauro Vieira highlighted the growing significance of BRICS, asserting that the response to the current multilateral crisis must be "more multilateralism," Caliber.Az reports via Global Times. 

The Trump administration’s "America First" approach, with its challenges to the multilateral trading system, has led to substantial upheaval in global supply chains, escalating uncertainty in international markets. Developing countries, particularly, are bearing the brunt of such unilateral actions, facing deteriorating trade conditions, restricted export opportunities, and the daunting task of adapting to rapidly shifting supply chains.

For many developing nations, navigating these challenges requires making difficult trade-offs, often accepting concessions that provide short-term relief but undermine domestic industries and long-term growth prospects. Moreover, the reshuffling of global supply chains under US policies could heighten competition and tensions among developing nations, potentially pitting them against each other.

Against this backdrop, BRICS nations, which collectively account for approximately 47% of the global population, 30% of global GDP, and one-fifth of global trade, are positioned to play a critical role in defending the interests of the Global South. According to the IMF's October 2024 projections, emerging economies within BRICS will drive future global growth, overshadowing their wealthier Western counterparts.

This growing economic clout provides BRICS with the potential to counter the impact of unilateral US actions and advocate for a fairer global trade system. Notably, while the BRICS economies benefit from access to the US market, the US is equally reliant on products and supply chains originating from these nations. Any tariff increases could disrupt US supply chains and sever ties with a key consumer market, highlighting the importance of balanced, cooperative trade policies.

In this volatile environment, experts stress that unilateral actions are insufficient to address the complexities of global trade. Instead, fostering multilateral collaboration is essential to ensure the stability of the global economy. For BRICS and other developing nations, the path forward lies in uniting behind multilateral principles, strengthening economic cooperation, and promoting domestic industrial innovation.

Regionally, the focus should be on liberalising trade and investment to create a more conducive environment for growth. Strengthening coordination within global supply chains, particularly among upstream and downstream countries, will allow BRICS members to share resources, exploit complementary advantages, and drive synergistic development.

By Aghakazim Guliyev