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The sixth IBSA (India, Brazil and South Africa) summit, to be held here on June 6, is going to significantly focus on greater enhancement of trade in services among the three emerging power houses. Besides, during the summit, the leaders are expected to work out a methodology to increase foreign capital inflows within the grouping.
This year will also mark the 10th anniversary of the grouping which was created with the objective to promoting south-south trade in services, goods, investment and energy.
The focus point in this year’s summit will be greater cooperation in movement of professionals. There will be discussion on having a relaxed visa regime to enhance movement of people from one country to another within the grouping.
IBSA leaders will also seek to explore and forge greater business ties to increase intra-IBSA trade, which currently stands at a depressing two per cent of their total trade, which is to the tune of $1.5 trillion.
“The trilateral trade between the countries has tripled in the last five years from close to $9 billion in 2006 to $27 billion in 2011,” a study by the Confederation of Indian Industry said.
The last IBSA summit was held in Pretoria in South Africa in October 2011, where the leaders had decided to deepen their focus in real economy areas such as healthcare and pharmaceuticals, agriculture and agro-processing, mining and infrastructure, energy and climate change, financial and business services.
Another persistent concern area for these three countries is decline in inflows of foreign capital. “As most of the outward FDI (foreign direct investment) from these countries flow to other developing countries, there is ample scope for intra-IBSA engagement through cross-border investments in services,” CII said.
There is a possibility this time that the leaders might discuss the option to have an IBSA-wide investment promotion package.
Prior to the meeting of the heads of states, the IBSA Business Summit is schedule to take place on June 5-6, including the IBSA trade ministers’ meeting.
FDI inflow, by country, 2005-10
(Million of dollars)
| Country | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 |
| India | 7,622 | 20,328 | 25,350 | 42,546 | 35,649 | 24,640 |
| Brazil | 15,066 | 18,822 | 34,585 | 45,058 | 25,949 | 48,438 |
| South Africa | 6,647 | -527 | 5,695 | 9006 | 5365 | 1553 |
Source: UNCTAD, World Investment Report 2011
