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'BRICS not 'psychologically ready' to sign free trade zone'

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Press Trust of India Moscow
Last Updated : Jul 06 2015 | 7:57 PM IST
BRICS nations are not "psychologically ready" to sign a free trade zone deal but may sign an agreement on more profound economic integration in the next 5 years, a top Russian minister said today ahead of a summit of leaders of Brazil, Russia, India, China and South Africa.
"Of course, it is now premature to talk about the BRICS economic agreement. But if the approach and the crystallisation of our association as an international group will take place at the same pace as now, the economic agreement within a few years will be quite timely and inevitable," First Deputy Economic Development Minister Alexei Likhachev said.
"I think it can happen within five years," he said.
In his opinion, the correct decision is that "we do not rush events and not grind out an agreement on free trade zone now."
"Countries are not yet ready for it psychologically. But we are already discussing the terms of the agreement regime," he told state-run news agency TASS.
However, Likhachev expressed confidence that "the day when the BRICS countries will speak about the economic agreement is not far away". According to him, the agreement will undergo several stages.

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"At first it will be a declarative document that will inspire our countries to cooperate more actively. Then it could be non-preferential agreements, which optimize regulatory system, simplify customs and investment procedures, create the so-called "green corridors" for goods. The third phase is a preferential regime - concessions that we will make in terms of commodity trade," Likhachev said.
On July 9, Prime Minister Narendra Modi, President of Brazil Dilma Rousseff, Russian President Vladimir Putin, Chinese President Xi Jinping and President of South Africa Jacob Zuma will meet in Russia's Ufa for a day-long meet.
BRICS account for a fifth of the world's economic output and 40 per cent of its population.
As of 2012, the five BRICS countries have a combined nominal GDP of USD 13.7 trillion and will surpass the size of the US economy which is approximately USD 15 trillion, by 2015.
BRICS ministers of trade and economic development will discuss forming a common approach to the completion of WTO Doha round, Likhachev added.
"We plan to discuss common approach to the completion of WTO Doha round at the meeting of trade and economic development ministers," Likhachev said.
The BRICS grouping are expected to launch a Common Economic Strategy Document for an easily trade framework for boosting intra-BRICS trade-during the seventh edition of the summit in Ufa, Russia, on July 9.
The New Development Bank will be operationalised at the Ufa summit.

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First Published: Jul 06 2015 | 7:57 PM IST

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