Francis Moloi, High Commissioner, South Africa speaking at the National Consultation in New Delhi on October 7, 2005

IBSA Project

South-South Economic Cooperation: Exploring the IBSA Initiative

Background

The alliance between India, Brazil and South Africa (IBSA) was formed at a tri-lateral meeting in Brasilia, June 2003. Initially the impetus derived from common geopolitical concerns, but the alliance quickly attained a broader agenda including other aspects of international cooperation like international economics and trade agreements. The IBSA countries are the developing countries with some of the strongest positions within the multilateral trade system, and stand to gain significant global influence as well as gains from increased trade amongst themselves, if they cooperate.

The Doha round of WTO negotiations resumed in Hong Kong, December 2005 and is expected to run throughout 2007. It is widely agreed that agriculture will hold the key to the progress of these negotiations, which will have a significant impact on global economic governance. The G-20 group of developing countries is expected to play an important role in the negotiations with the IBSA countries in a coordinating role.

The IBSA project was supported by the Swiss Agency for Development and Cooperation (SDC).

Concept

The IBSA project analysed the relationship between the different policies of the IBSA countries, in particular on issues of economics, trade and investment. Through research, the project facilitated the exchange of lessons learned among relevant stakeholders on trade and investment cooperation; in order to better understand the concerns and potential surrounding future economic cooperation as an example of South-South cooperation to enhance the economic strength of the regions.

Expected outcomes

The programme ran from 1 January 2005 to 31 December 2005. A detailed analysis of current trilateral trade and investment between the IBSA countries provided the foundation for field studies on relevant industries in the three countries, providing a deeper understanding of stakeholders’ perceptions about present and future trade and investment cooperation. This research formed the basis for national consultations, which involved key policy makers, business and civil society, fashioning a broad-based network. Finally, three policy briefs on each country and a final advocacy document were produced and presented in December.

The IBSA initiative has spawned a sister project, IBSA-II, focusing on the IBSA countries’ position on agricultural negotiations at the WTO.

Partner Organisations:

CUTS Centre for International Trade, Economics & Environment (CUTS-CITEE), India

Institute for International Trade Negotiations (ICONE), Brazil