Dramatic increase in intra IBSA trade – India-Brazil-South Africa close to us $ 10 billion target, says UNCTAD
	15:21 IST

There has been a quantitative leap in intra-IBSA trade, which is particularly dramatic between India and Brazil and India and South Africa. This is indicated in a paper by United Nations Conference on Trade and Development (UNCTAD) titled “IBSA: An emerging trinity in the new geography of international trade”, which says that the “growing dynamo role (of IBSA partnership) in intra-regional and inter-regional South-South trade in general augurs well for IBSA trade and economic cooperation and for each country using the other partner as a gateway for intensifying inter-continental trade and investment links”. From a mere $200 million in 1998 and $800 in 2002, Indo-Brazil reached $2.5 billion in 2005 and is expected to be $3 billion in 2006. India-South Africa trade similarly has grown to $4 billion in 2005. South Africa-Brazil trade stood at 1.5 billion in 2004. These trends indicate that IBSA is already close to the $10 billion target set for 2007. These numbers do not fully reflect trade in service or the quantum of trade between them through third countries, nor do they factor in the major FDI proposals and joint ventures on the anvil or even in some cases the services trade that is taking place, the paper adds. India Brazil South Africa Trilateral Cooperation Forum (IBSA) is a unique initiative undertaken in the area of South-South economic cooperation. What sets it apart is that it is a "ginger group" of three large, economically well-endowed and dynamic countries, from three developing continents who are attempting to strengthen trade, investment, transfer of technology and economic cooperation among themselves. Brazil has become the largest economy in Latin America, with significant global trade presence. India, fourth largest economy in PPP (purchasing power parity) terms and second most populous country, has witnessed impressive economic and trade growth rates in the last few years. South Africa is the largest economy and trading power in Africa, accounting for biggest share of total African trade with the world, according to UNCTAD. “In 2005, IBSA countries are among the top 15 developing countries, in terms of total trade. Their growing significance in international trade is shown by the way India has doubled its global trade share (both exports and imports) from 0.8% in 2000 to 1.6% in 2005, amounting to total trade of $306 billion. Similarly, South Africa's trade grew to $102 billion and Brazil's trade reached $193 billion. The value of Brazil's exports to other IBSA countries increased by 99% over the 1994-2004 decade. The corresponding figures for India and South Africa are 559% and 123% respectively. This implies that the value of trade among IBSA's countries more than tripled from 1994 to 2004. IBSA countries can reinforce the economic strength of each other by creating a market of 1.2 billion people, 1.8 trillion dollars of GDP and foreign trade of nearly 600 billion dollars. IBSA partnership is also of immense strategic value for multilateral negotiations and shaping their respective roles in global economic governance”, the paper adds. *************** SB/NR/MRS