Amid US President Donald Trump’s offensive against BRICS, the bloc’s presidency of Brazil has committed to develop a platform that allows member countries to use their own currencies for trade between them, which could make their way To replace, in part, the dollar as the currency of international trade.
“In order to comply with the mandate established by the BRICS leaders at the Johanesburg summit in 2023, the Presidency of Brazil will continue cooperation efforts to develop local payment instruments that facilitate trade and investment, taking advantage of more affordable payment systems, transparent, safe and inclusive ”, informs the document.
The measure contradicts the interests of the United States, which started a trade war with the increase of tariffs for some markets and products, including the steel and aluminumgoods that Brazil exports to the US country.
This Thursday (13), before meeting with Indian Prime Minister, Narendra Modi, who is part of BRICS, President Trump said the block would be “dead” after the threats he made to tax in 100% imports from countries that replace the dollar.
In turn, the Brazilian BRICS Presidency document states that the “foolish resource to unilateralism and the rise of extremism in various parts of the world threaten global stability and deepen inequalities.”
The document completes that “President Luiz Inacio Lula da Silva has highlighted the potential of BRICS as a space for building solutions that the world needs so much. More than ever, the collective ability to negotiate and overcome conflicts through diplomacy is crucial. Our group dialogues with everyone and is at the forefront of those who advocate the reform of global governance. ”
Professor of Political Science at UFRGS Fabiano Mielniczuk – FABIANO MIELNICZUK/PERSONAL FILE
Desolarization
Political science professor Fabiano Mielniczuk, from the Federal University of Rio Grande do Sul (UFGRS), stressed that Brazil will have to make it clearer for the world what this type of payment mechanism in local currency means.
“Brazil has emphasized a lot, especially in the figure of its new Sherpa, the [embaixador] Maurício Lirio, who does not intend to advance towards the dedolarization of international economic relations. Brazil does not want to create friction with the US. And Brazil needs to make it clear to what extent the creation of mechanisms for payment in local currency within BRICS represents, or not, an alternative to the dollar, ”he said.
For experts consulted by Brazil agencyyou USA seek to preserve their global economic hegemonywhich has in the dollar as an international currency one of its main advantages. On the other hand, BRICS countries argue that the use of local currencies for trade brings economic benefits and reduces external weaknesses, as countries would not always need to resort to the dollar for foreign trade.
The professor of international relations at the Federal Rural University of Rio de Janeiro (UFRRJ) Ana Elisa Saggior Garcia evaluates that Brazil’s note did not bring news about what was already being discussed in the context of the block in relation to the means of payment, still missing detail how this would be implemented.
Professor of International Relations at UFRRJ and researcher at BRICS Policy Center, Ana Elisa Saggiooro Garcia – ANA ELISA SAGGIORO GARCIA/PERSONAL FILE
“There is a lot to do to face this Trump period. I think if, in fact, BRICS can advance in facilitating internal trade within the block, defaulting on imposed tariffs, advancing in credit transactions and trade financing in local currencies, we will have a significant advance, ”he said Ana Elisa, who is a researcher at the Brics Policy Center, from the Pontifical Catholic University of Rio de Janeiro (PUC-Rio).
IA and INDUSTRY
Brazil still promises to strengthen the newly created Think Thanks network about finance and infrastructure, tax and customs cooperation, as well as deepen the BRICS partnership for the new Industrial Revolution (Partir), “whose objective is the diversification and technological update of the industrial base of the groups of the group ”.
THE Regulation of Artificial Intelligence (AI) It is another agenda of the Brazilian presidency at BRICS. For Professor Fabiano Mielniczuk, Brazil and the BRICS need to advance the protection of data produced in the countries.
“These data are generating wealth for Big Techs. Brazil should focus on the economic dimension of data economy behind the generation of AI models and not just regulate AI use. If the economic bias of data savings advances in the treatment of IAS, then the interests of the Global South will be met, ”argued the BRICS expert.
IMF and World Bank
In the document that details the priorities of the Brazilian presidency, the country also pledged to promote the defense of the reform of international financial institutions, in particular, the World Bank and International Monetary Fund (IMF).
“The Brazilian presidency intends to increase the representation of developing countries in leadership positions [no FMI e Banco Mundial]better reflecting the contributions of the global southern nations to the world economy, as well as the aim to work to improve initiatives such as the New Development Bank and the arrangement of contingencies reserve, ”says the text.
The BRICS contingency reserve arrangement, created in 2014, provides support for countries with resources for liquidity crises from the block economies. CRA has at least $ 100 billion in reserves. The Novo Development Bank (NBD) is the Bank of Brics, currently led by former Brazilian president, Dilma Rousseff, who has defended the expansion of the use of local currencies.
