Brics plays central role in global trade reforms – Ramaphosa

President Cyril Ramaphosa has called on Brics nations to take a leading role in reforming multilateral institutions, warning that rising protectionism and unilateral tariff actions are threatening the global economy, particularly for countries of the Global South. Addressing Brics leaders during a recent online summit, Ramaphosa said the world was experiencing “cosmic shifts” in trade, moving from a unipolar to a multipolar order. This realignment, he cautioned, was being marked by intensifying geopolitical tensions and growing competition. He warned that “the progress and economic dynamism of emerging economies” was being undermined by disruption and instability. New shocks to global trade patterns, international financing and critical minerals flows, combined with sovereign debt burdens and imbalanced tax regimes, were creating fresh uncertainty for policymakers, consumers and companies. “Unilateral tariff actions are contributing to an increasingly protectionist environment that poses great hardships and dangers for countries of the Global South,” he said. “The uncertainty of the new trading regime has negatively affected employment levels in South Africa and remains an obstacle to our economic growth.” According to Ramaphosa, Brics continues to play a central role in advocating for reforms to ensure the global trading system is more inclusive, representative and fit for purpose. “As South Africa, we will continue to support meaningful Brics initiatives that improve the resilience of our economies as Brics countries and those of the Global South, while strengthening the global multilateral system.” He said South Africa remained committed to strengthening and diversifying its trade and investment partnerships with Brics counterparts. “I strongly believe that when Brics countries unite in solidarity to co-create solutions, we unlock tangible mutual benefits for Brics members and the broader Global South.” Ramaphosa added that South Africa’s position was rooted in preserving a rules-based order. “South Africa remains firm that the multilateral trading system, with the WTO and the United Nations at its core, must be preserved until all member states are able to reach their developmental goals. Over the past 30 years, the WTO has worked to create a level playing field in global trade that is free, predictable and governed by clear rules.” However, he said imbalances persisted, with developing economies still locked into the lower end of global value chains. “South Africa supports the reform initiative being spearheaded at the WTO. Brics countries must champion these reforms. We must redouble our efforts to ensure that trade supports development.” LV