Nath upbeat on Indo-Brazil-South Africa trade pact

NEW DELHI: The Indo-Brazil-South Africa (IBSA) trilateral co-operation represents the “new trade geography” in which each country can use its other two partners as gateways for intensifying intercontinental trade and investment links, commerce and industry minister Kamal Nath has said.

Addressing the first IBSA business summit organised jointly under the aegis of the IBSA Business Council by the CNI (National Confederation of Industries, Brazil), BUSA (Business Unity South Africa), CII, Ficci and Assocham, in Brasilia, Mr Nath said that while India can provide an excellent staging post for South Asia and South East Asia, Brazil can act as the hub for Latin America as a whole and South Africa can do likewise for the entire sub-Saharan Africa.

Pointing out the potential of the trilateral alignment, the minister said in a statement issued here that intra-IBSA trade was only $7.7bn in ’05, representing less than 1.5% of the total trade of the three countries. Moreover, none of the IBSA countries features as one of the 10 most important trading partner of the other two countries.

Mr Nath said that IBSA countries could reinforce each others economic strength by creating a market of more than $1.2bn, a combined GDP of $1.8 trillion and trade of more than $600bn. “The modest target of intra-IBSA trade of $10bn, set for ’07, appears to be eminently achievable,” Mr Nath said.