| In the face of challenging pressures to develop an | | | | trade between India and South Africa climbed 133 |
| reliable alternative option to globalization--one that | | | | percent from 1.3 billion to 3.1 billion dollars. The IBSA |
| emerges from a developing world to put to an end | | | | negotiations are aimed at raising trilateral trade flows |
| to global marginalization of the poor nations--there | | | | to 10 billion dollars next year. |
| has been a new push to redefine political and | | | | According to Mbeki, President of South Africa "the |
| economic arrangements in recent times. One | | | | adoption of a free trade agreement between these |
| component of these many recent initiatives is the | | | | three nations would be an unprecedented step in the |
| idea of south-south cooperation | | | | world trade system, which means it is essential for it |
| The emergence of the transatlantic links between | | | | to be taken in an appropriate manner". |
| India, South Africa and Latin America began when | | | | Though a lot more needs to be done the summit |
| the leaders of three countries, India's Vajpayee, | | | | saw a good beginning in many areas. Brazil and South |
| Brazil's Lula, and South Africa's Mbeki spearheaded a | | | | Africa adopted a three-year pilot project for the |
| new approach to south-south cooperation at the | | | | export and import of cars and spare parts. At the |
| 2003 UN General Assembly Forum, resulting in a | | | | same time, Brazil and India agreed on the sharing of |
| trilateral India-Brazil-South Africa agreement (IBSA). | | | | alternative technologies. Rogelio Golfarb, president of |
| According to the SAIIA, IBSA encompasses a total | | | | the National Association of Automotive Vehicle |
| population of 1.3 billion people and an economy of | | | | Manufacturers, which participated in the summit |
| $1.26 trillion. The First meeting of the foreign ministers | | | | activities as a representative of Brazil's business |
| of IBSA Dialogue Forum was held in New Delhi on | | | | community said about the summit "All of this is |
| March 4 and 5 2004. Issues addressed included social | | | | complementation. South Africa specializes in luxury |
| development, disarmament, infrastructure, health | | | | automobiles, and Mercosur is strong in the production |
| care, sustainable economic development, and poverty | | | | of compact cars. India expressed great interest in |
| alleviation. | | | | the production of ethanol fuel (produced from sugar |
| After successes in the Doha and Cancun rounds of | | | | cane) and biodiesel, and Brazil expressed interest in |
| the WTO summits, The heads of IBSA met for the | | | | Indian techniques for producing wind and solar |
| first ever-trilateral summit recently at Brasilia just | | | | energy." |
| before the NAM summit. "As emerging economic | | | | The summit allowed the three countries to stress |
| giants in the developing world, India, Brazil and South | | | | their points of view on the resumption of the WTO |
| Africa account for a combined gross domestic | | | | Doha Round of multilateral trade talks, on U.S. |
| product (GDP) of over one trillion U.S. dollars and it | | | | Security Council reform to incorporate permanent and |
| seems set to push the number in an unexploited | | | | rotating members from Latin America, Asia and |
| trilateral market" commented the South African | | | | Africa. The Indian Prime Minister said in the summit, |
| Broadcasting Corporation | | | | "the usefulness of IBSA in the international |
| "We have a common understanding about what | | | | community was clear in the leadership role that the |
| needs to be done, especially in areas like ICT | | | | three countries played in the Group of 20 (G20) |
| (Information and Communications Technology) and | | | | developing nations in the WTO negotiations" |
| telecommunication,"said Dupree Vilakazi, president of | | | | Brazil and India signed a multi-million dollar trade |
| South Africa's National Black Business Council in the | | | | agreement to improve co-operation between the |
| summit. The South African Foreign Ministry | | | | two major emerging economies. The areas of the |
| spokesman Ronnie Mamoepa said, "Since its | | | | deal involved technology and alternative energy |
| establishment in 2003, the IBSA had become | | | | source development. One of the central joint |
| instrumental in promoting closer coordination on global | | | | projects signed with Brazil was in developing ethanol |
| issues between South Africa, India and Brazil. The | | | | fuel as an alternative to oil. Both agreed to create |
| three have become frequent guests of the annual | | | | the Joint Committee on Bio-fuels. Brazil, which taps |
| gathering of the Group of Eight (G8) industrialized | | | | into its huge sugar cane production to make ethanol, |
| countries". "The historic summit was the culmination | | | | announced that it would help India and South Africa |
| of three Ministerial Trilateral Joint Commission | | | | produce the alternative fuel. "Indian companies from |
| meetings that have taken place in New Delhi (2004), | | | | both public and private sector have evinced interest |
| Cape Town (2005) and Rio de Janeiro (2006), under | | | | in exploring production opportunities in Brazil to meet |
| the leadership of the three foreign ministers," he | | | | the anticipated growth in ethanol use in India for both |
| further said. | | | | industrial as well as automobile use," Said Dr Singh in |
| South Africa's Deputy President Phumzile | | | | the joint statement. |
| Mlambo-Ngcuka, who was in India recently said, " | | | | For the year 2005-06 Brazil's exports to India soared |
| India was a key strategic partner of South Africa. | | | | to 1.1 billion dollars, a 75 percent increase over 2004, |
| Both the countries political and economic relations are | | | | according to official Brazilian figures. Imports from |
| sound and is based on mutual respect and concerns | | | | India totaled 1.2 billion dollars, a 116 percent rise. |
| for each other's development," | | | | The Brazilian President Luiz Inacio Lula da Silva said, |
| With sound economic bilateral ties with South Africa | | | | "Since then, we have worked intensely in various |
| solidification of the IBSA looks all the more bright. | | | | fronts to deepen our political and economic alliance, |
| The country has a strong Indian connection. About | | | | which we have now decided to elevate to strategic |
| one million of South Africa's 47 million people are | | | | partnership status". On similar lines the Indian Prime |
| descendants of Indian laborers and immigrants who | | | | Minister Dr Singh said, "India and Brazil are large, |
| came to the country in the past century. Many of | | | | pluralistic democracies. Our economic growth is |
| them are involved in trading business. India's leading | | | | broad-based and multifaceted. This provides |
| enterprise groups such as Tata and Mittal Steel are | | | | opportunities for expansion of our bilateral trade and |
| also investing hugely in South Africa's automobile, | | | | economic relations." |
| mining, telecommunication and other industries. "India | | | | On the issue of Civilian Nuclear Deal with USA both |
| is among the top 10 investing countries in South | | | | Brazil and South Africa assured India of full support |
| Africa, with investments estimated to the value of | | | | though details were not available. This is again a very |
| 10 billion rand (1.4 billion U.S. dollars)," said | | | | historic achievement |
| Mlambo-Ngcuka. | | | | With a strong foundation a small beginning has been |
| Annual trade between 2001 and 2005, of India and | | | | made for IBSA and if it works out successfully it can |
| the Mercosur trade bloc (comprising of Argentina, | | | | create huge opportunities not only for the nations |
| Brazil, Paraguay and Uruguay) grew from less than | | | | concerned but can also change the face of global |
| one billion dollars to 2.3 billion. Around the same period | | | | politics. |