bric

BRICS Trade & Economic Ministers emphasize need to resist
protectionist tendencies
Ahead of the 4th summit level meeting of the regional grouping of the leaders of BRICS*, the Trade
and Economic Ministers retrospected the global economic situation. In a joint Statement issued at the
end of the BRICS Trade Ministers meeting in New Delhi, the member nations stressed the need to
withstand protectionist propensities and to encourage international trade as an engine of economic growth and
development and to engage their legitimate aims of growth, development and stability. The BRICS Ministers observed
that subsidies in agriculture by some developed countries continue to deform trade and weaken the food security and
development aspects of developing countries.




BRICS to sign pacts for trade in local currencies
BRICS* – Brazil, Russia, India, China and South Africa, the 5 major emerging economies of the World
are set to put in an economic momentum into their grouping by inking two pacts for furthering intra-
BRICS trade at the 4th summit of their leaders in New Delhi.
(*South Africa joined the BRIC, a term coined by Goldman Sachs economist Jim O’Neill to denote the four fastestgrowing
emerging economies of the world, changing the nomenclature of the grouping to BRICS, in April 2011 at the
Sanya summit in China.)
Objective: The two agreements will enable credit facility in local currency for businesses of BRICS countries.
The agreements will be inked in the presence of the leaders of the 5 countries. The pacts are expected to scale up
intra-BRICS trade which has been growing at the rate of 28% over the last few years, but at $230 billion, remains much
below the potential of the five economic powerhouses.



BRICS Summit key Highlights:
 Countering Piracy;
 Countering Terrorism;
 Growth and trade enhancement in BRICS countries;
 Development of Infrastructure in BRICS region;
 Experience sharing in order to resolve troubles originating from urbanisation.
 Equitable and fair distribution of income;
 For WB President’s post, supporting a candidate from developing nation;
 Jobs creation and skill development;
 Mutual collaboration for stabilization of Afghanistan;
 Prioritizing food, water and energy security solutions;
 Reforms in UNSC, WB, IMF through increase in representation from developing nations;
 Revitalize WTO’s Doha Round;
 Solution to problems in Iran, North Africa and Syria, West Asia via diaglogue and UN;
March 30, 2012
BRICS nations sign pacts to trade in local currency
5 Banks of BRICS (Brazil, Russia, India, China and South Africa) inked 2 pacts:-
 Master Agreement on Extending Credit Facility in Local Currency;
 BRICS Multilateral Letter of Credit Confirmation Facility Agreement
This is a combined attempt to address with problems of a jolting world economy
hit by sovereign debt crisis in many European countries and protectionist
Current Affairs Published on www.gktoday.in from January 1, 2012 to
September 10, 2012
propensities of some developed countries. The development banks of BRICS inked a master agreement on extending
credit facilities in the local currency and the BRICS multilateral letter of credit confirmation facility agreement.
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India might be 1st BRIC to lose investment rating: S&P
As per the ratings agency Standard & Poor’s India may become the 1st BRIC country to be degraded in investment
grade rating.
What is the reason that might lead India loose its investment rating?
Slow GDP growth and degree of susceptibility to economic shock are reasons behind the possible fall in ratings
Rating prospects shows negative trend from stable in April 2012 because of India’s slower GDP growth scenario and
the risk of erosion of its external liquidity and fiscal flexibility. The Negative stance also points to the risk that Indian
authorities may be unable to respond to economic shocks quickly and decisively enough to safeguard the country’s
current creditworthiness. But Indian economy still remains in much better form to endure this period of severe global
uncertainty than it was in the early 1990s, when it underwent a balance-of-payments crisis