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BRICS worried over global economy uncertainty, vow to enhance coordination

April 13, 2011 - Sanya (China)

A day ahead of the BRICS Summit to be held here, trade ministers of Brazil, Russia, India,China and South Africa met and unanimously agreed that uncertainty in world economy has grown in the light of recent events in Arab world and North Africa, and therefore, there was a need to enhance cooperation.

Chinese Trade Minister Chen Deming said: "BRICS Ministers unanimously agreed that the recovery of world economy is going on, process is not even there are lots of risks especially sovereign debt crisis in Europe, turmoil in the Middle East and tsunami and earthquake in Japan have added to the uncertainties in world economic development. Therefore, BRICS should continue to contribute to global economic growth."

India also cautioned about the ongoing crisis. Commerce and Industry Minister Anand Sharma said: "We will be carefully watching the developments in the wake of what is happening in the last few months, particularly the developments in the Middle East and North Africa impacting severely on global energy security because of the spiraling oil prices and the food inflation and food availability".

He added: "Therefore, it is imperative to coordinate the position and also acknowledging the shift that is taking place."

Echoing the position taken by other patners in the group, Brazil also said that the recovery of world economic crisis is fragile and asked BRICS for more cooperation and more macro-economic coordination."

razil's Trade and Industry Minister Fernando Pimentel: "We trust that our finance ministers and officials that are meeting next week in Washington can find best ways to tackle the problems."

The BRICS ministers also mooted the formation of a coordination and liaison group which would coordinate between the five economies.

South African Trade and Commerce minister Rob Davis said: "So, we look forward to the liaison group receiving inputs from all of us and also overseeingrocesses of studies some of which are already underway in quite advance and to identify areas of cooperation".

The trade ministers warned that trade talks faced the risk of collapse, but added that they were willing to resume negotiations based on 2008 agreements. By Naveen Kapoor


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