On July 15, several of the world’s most powerful emerging market leaders will meet in Brazil. Heads of state from the five BRICS countries—Brazil, China, India, Russia, and South Africa—will convene for the group’s sixth summit.The meeting marks the first official visit to Brazil by both Chinese President Xi Jinping and Indian Prime Minister Narendra Modi. The trade bloc, which first began heads-of-state summits in 2009, brings together a group of markets that the World Bank estimates will account for the majority of global growth by 2025. Ahead of the meeting, AS/COA Online zeroes in on the Latin American country’s trade relationship within the bloc.
China dominates trade relations among the BRICS, according to Brazil’s Ministry of Development, Industry, and Foreign Trade. In 2013, the value of China-Brazil trade was more than nine times larger than Brazilian trade with India—the Latin American country’s second largest partner within the group.
Brazil’s trade with BRICS partners rose over the last decade, but the largest increase came from rapid growth in China ties. From 2012 to 2013, however, Brazilian trade with India, Russia, and South Africa actually decreased slightly.
This trade surge is due in part to the sheer size of China’s economy in comparison to other member countries. The International Monetary Fund shows China’s GDP last year surpassed that of all its BRICS counterparts combined.
Brazil has sought to expand trade with other regions, such as the European Union. However, last year Brazilian trade with BRICS countries surpassed that of the EU for the first time since 2000. On the other hand, trade with the South American Common Market, or Mercosur, remains smaller in comparison.
Brazil’s top exports to the BRICS consist of natural resources. Soy accounts for almost half of Brazilian exports to the bloc so far this year.