Brics for collective action to deal with global problems

Concerned over the fallout of the European sovereign debt crisis, Brics countries including India today called for collective efforts to deal with the problem.

"Adversity of financial crisis is being faced by all. There is a need to work together to overcome from this problem," Commerce and Industry Minister Anand Sharma said here at the Brics Business Forum 2012 organised ahead of the Brics Summit.

Echoing similar views, Chinese Commerce Minister Chen Deming said the US and EU problems are impacting all and pulled down Chinese exports to the region. "I am sure they will recover. There is a need to prevent the EU crisis quickly before it gets worsened," he added.

Speaking on the occasion, Russian Minister for Economic Development and Trade Elvira Nabioullina said that over 50% of Russian trade goes to euro-zone.

"The world has to stop accumulating risks. There is a need to work closer," she said.

The Brics members — Brazil, Russia, India, China and South Africa — also raised concerns over the impact of rising crude oil prices in the wake of sanctions being imposed by Europe and the US on Iran.

"Rise (in price) of crude oil has impacted all countries. Iran issue has become an issue for all. We need to continue with normal relations with Iran, but at the same time we respect UN resolution. We hope that unilateral movement by one country will not affect other countries," Deming said.

Sharma, too said, India respects international laws.

"But at the same time, we have economic engagements with our partners. We cannot overlook that," he said.

Sharma added that due to volatility of oil prices, India's trade balance is widening and hurting the economy.

"Our trade account is stressed primarily because of oil and gold imports," he said.

On the proposed development bank by Brics nations, Brazilian Development, Industry and Foreign Trade Minister Fernando Pimentel said the country will support the proposal tomorrow to fasten the process.

"This is a very powerful tool. Creating such a tool may be a major support to overcome the EU crisis," he said.

Development banks of Brics nations are in advanced stage of reaching a pact for extending cross-country credit in local currencies of member nations.

Commenting on trade among Brics nations, South African Trade and Industry Minister Rob Davies said that there is a huge potential to increase trade among the member nations.

"It is not only government's effort which will help to increase trade, but also the business community of Brics needs to come closer," he said.

At present, intra-regional trade of Brics stood at $230 billion.