All eyes on BRICS Summit for solutions

By Azhar Azam

As the international multilateral system continues to erode and the 90-day pause on additional global tariffs by the Trump administration nears its end on July 9, global trade, security and governance face uncertainty and new challenges. Therefore, all eyes are on the 17thBRICS Summit in Brazil's Rio de Janeiro to see what kind of strategy the champion of the Global South and a stabilizing force in an increasingly volatile world comes up with to tone down differences and ensure a fair and balanced international order.

The BRICS Summit is expected to strategize how to break trade barriers and strengthen supply chain resilience, foster economic integration and push intra-BRICS trade.

The BRICS vision of reforming international institutions, preventing conflicts, promoting peace and addressingpovertyand inequality is now being echoed by the Western intelligentsia as well. The organization's advocacy of a multilateral order that upholds state sovereignty, rejects protectionism and proposes trade in national currencies as the U.S. policy continues to shift has strengthened with its expansion.

The expanded BRICS now boasts 11 full member states who together account for almost 48.5 percent of global population, 39 percent of world GDP (in purchasing power parity) and 24 percent of international trade. It alsohas 10 additional countries as partners.

This vast demographic and economic prowess has given BRICS the potential to stabilize the global economy and make the international order just and equitable, a long-standingdemand of the Global South.

Many countries in the Global South believe that current international order undermines their interests. The stockpiling of COVID-19 vaccines bysome wealthynations during the pandemic proved this, as well as the conflicts in Ukraine and Gaza. This has led to a stronger demand for fairness in the global order.

Nations view their accession to BRICS as a "strategicstep" to expand cooperation with other developing nations andacceleratetheir infrastructure development and energy transition despite Donald Trump'sthreatto impose 100 percent tariff on BRICS nations.

Intra-BRICS trade has reportedly crossed $1 trillion while the GDP of the bloc in 2025 isprojectedto reach 3.4 percent, exceeding the global average of 2.8 percent. As of 2024, BRICS' New Development Bank had approved120projects to the tune of $39 billion in key areas such as transport infrastructure, clean energy, sanitation and social development.

With the latest expansion, BRICS countries account for about42 percent of global food production, 33 percent of agricultural land, 39 percent of the planet's water resources and more than 40 percent of oil production worldwide. This has made the bloc an economic, technological and commodity powerhouse.

Mechanisms and initiatives such as the Contingent ReserveArrangement to provide mutual financial support to BRICS members facing balance of payments difficulties, the BRICS Economic PartnershipStrategyfor 2030, which prioritizes trade facilitation, boosting intra-BRICS trade, and aligning trade with environmental concerns, andthe Partnershipfor the New Industrial Revolution to foster industrial development, innovation, and technological cooperation,are providing financial cushions, driving innovation and uplifting BRICS' competitiveness.

China's presence has given additional ballast to BRICS.In the first nine months of 2024, Beijing'stradewith other BRICS countries rose 5.1 percent to $648 billion. It is theprimarytradingpartnerand major source of foreign investment for several BRICS nations. China's booming trade, large consumer market and the Belt and Road Initiative have been a driving force behind the alliance'sintegration.

Contrary to the claim by some countries that BRICS isdiminishingthe role of West-dominated institutions, its long-term priorities are toreform and improve these very multilateral bodies while strengthening economic, social and political cooperation among its member states to increase the influence of Global South in international governance and bring the marginalized into decision-making structures.

In an era of heightened security crises and increasingly complex geopolitical environment, its member states remain committed to non-interference and have unanimously called forrespectingthe international law and using channels ofdialogueand diplomacy to avoid escalation and resolve disputes.

If BRICS nations shelve their sporadic differences and intensify economic and trade cooperation, it can withstand new economic and geopolitical challenges and trade uncertainties.

When geopolitical tensions are rising and the world economy is in a whirl, a multilateral trading system can bringpeace and stability. The U.S. has failed to take cognizance of the looming danger to the American economy. But by pledging to increase trade, supporting economic growth and pursuing sustainable development goals, BRICS leaders at the upcoming summit can shield their economies from the rampant trade extremism and contribute to theconstructionof a fair and balanced international order.

Azhar Azam, a special commentator on current affairs for CGTN, is a market and business analyst who writes on geopolitical affairs and regional conflicts.