India, Brazil and South Africa are planning to enter into a trilateral free trade agreement, linking three economic powerhouses of Asia, Latin America and Africa in what would be a major South-South FTA. It is still unclear whether IBSA would liberalise trade between the three national markets or those of SACU (for South Africa), Mercosur (for Brazil) and India.
IBSA as an institution is making slow progress and it seems likely that some FTA between the three will eventuate. In April 2010 the three governments signed scientific cooperation agreements. South Africa hosted the fifth annual IBSA Dialogue Forum in October 2011.
last update: May 2012
With the aim of enhancing co-operation between India, Brazil and South Africa in the field of Small Industries, the Third Tri-nation Summit for Small Business Development began in Faridabad. Inaugurating the Summit the Union Minister of Micro, Small and Medium Enterprises Shri Mahabir Prasad raised hope that the summit will help the small industries of IBSA countries to meet global challenges.
Last month, captains of industry from India, Brazil and SA (Ibsa) descended on the Indian capital for the third summit of the Ibsa Trilateral Business Council.
The figures are undoubtedly impressive. A total combined gross domestic product (GDP) in purchasing power parity (PPP) terms of more than $5,28- trillion, or 8% of the total global PPP GDP of over $65,6-trillion. A total population of more than 1,39-billion people, or just under 21% of the global population of more than 6,7-billion. These numbers show the combined weight of India, Brazil and South Africa (Ibsa), the three member countries of the Ibsa Dialogue Forum.
Can India, Brazil and South Africa (IBSA) together make more money than they can spend? This was the fervent of the South African High Commissioner Francis Moloi at the third IBSA Business Summit 2008 that recently took place in New Delhi. Considering the three countries lie in different continents, connectivity is a major issue. In fact, integrating the three economies may be the ideal way to combat the global downturn.
Developing countries have talked of the philosophy of South-south cooperation for development for a very long time. A number of initiatives was launched during the 1960s and 1970s. However, progress was modest because of lack of resources and institutional weaknesses in developing countries. With the emergence of countries like Brazil, India and South Africa in this millennium with considerable capabilities and collective development experiences that South-south cooperation has begun to be seen as a viable strategy.
The India-Brazil-South Africa (IBSA) formation could have enough clout to stand up to the European Union and the US but it needs the help of emerging superpower China. Alternatively it should align with the BRIC (Brazil-Russia-India-China) group.
Reflecting their growing economic ties, India, Brazil and South Africa (IBSA) have set an ambitious trade target of $15 billion between the three countries by 2010.
When leaders of India, Brazil and South Africa meet next week for their annual trilateral summit, the one issue on top of their minds
will be the unfolding financial crisis.
Business leaders from India, Brazil and South Africa are meeting here on October 13 to deliberate on trilateral trade co-operation and will also discuss issues related to tourism and student exchange programme.
India, Brazil and South Africa (IBSA) is working towards sorting out procedural and infrastructural bottlenecks to increase mutual operation in key areas of energy, tourism and mining, industry body CII said on Monday.