More multilateralism is the key bulwark for the world against US unilateralism: BRICS

From Global Times with added notes.  This is from the perspective of BRICS and BRICS countries reacting to the tariff regime.

As the aggressive US tariff policies have sent shockwaves through the global economy, placing great pressure on global trading networks, the BRICS nations – alongside other emerging economies – need to deepen regional collaboration and leverage multilateral mechanisms to defend their interests and weather the storm of unilateralism.

Brazilian Foreign Minister Mauro Vieira said that BRICS is “more relevant than ever” and the best response for “the crisis of multilateralism is more multilateralism,” the South China Morning Post reported on Wednesday.

[Note:  Not only the Brazilian FM, but also the Brazilian President]

His viewpoint serves as a timely reminder of the indispensable role of multilateralism in global governance, particularly in light of current US administration’s continuous threats to impose tariffs on trading partners, including BRICS nations.

The Trump administration’s “America First” policy, manifested in its challenges to the multilateral trading system, has not only disrupted global supply chains but also heightened business uncertainty, creating a volatile and unpredictable trade environment.

For developing countries, the impact of such unilateral measures is particularly severe. They face deteriorating trade conditions, restricted exports and the daunting task of adjusting to rapidly shifting global supply chains. Many nations seeking to avoid tariff escalation may have to make difficult concessions. While these concessions may provide temporary relief, they often come at the expense of domestic industries and long-term economic development.

More critically, the Trump administration’s attempts to reshuffle global supply chains may also exacerbate tensions among developing nations, pitting them against one another by shifting conflicts and competition onto the developing world.

In this context, the role and stance of BRICS nations, as representatives of emerging markets and developing economies, have become increasingly vital. The BRICS nations now account for about 47 percent of the world’s population, about 30 percent of global GDP and one-fifth of global trade. Notably, the IMF in October 2024 predicted that the world economy is set to rely even more heavily on the BRICS group of emerging economies to drive expansion, rather than their wealthier Western peers. This substantial potential combined economic strength endows the BRICS with the capacity to act as a bulwark against unilateralism and a driving force for a more just and equitable global trade system.

It is also important to note that while BRICS nations benefit from access to the US market, the US equally depends on products and supply chains originating from BRICS countries. Should the US impose high tariffs on BRICS nations, it would not only sever ties with a massive consumer market but also disrupt its own critical supply chains. This mutual dependence highlights the need for balanced and cooperative trade policies rather than unilateral measures.

[What this means is that the RoW will simply not buy from or trade with the US.  I’ve said this a number of times and here it comes.]

From any perspective, unilateral actions cannot effectively address the complex challenges facing the global community and may also jeopardize the stability of the global economy as a whole. This underscores the critical importance of multilateralism. This is why there is the need for BRICS and other developing countries to present a more united multilateral front, for the purpose of protecting the economic interests of the Global South and contributing to a more stable, equitable and sustainable global economy.

That means BRICS countries need to unwaveringly uphold the principles of multilateralism, delve deeper into economic cooperation and foster even closer economic ties. Domestically, BRICS countries need to vigorously promote industrial innovation and upgrading, enhancing their competitiveness in the global market. Regionally, efforts should be made to promote trade and investment liberalization, creating a more conducive environment for economic cooperation.

In particular, coordination in global supply chains represents another critical area where BRICS nations can lead by example. By strengthening cooperation among upstream and downstream countries in supply chains, BRICS members can achieve resource sharing, complementary advantages and synergistic development.

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Now we change gears to my favorite American example.  (Nothing personal – he just makes a good example)

According to Scott Ritter, de-dollarization is dead.  He even shouts it out, saying that it is dead because Mr Trump said so!  (and he has studied de-dollarization).  But apparently he does not understand that using local currencies between countries is de-dollarization.

This is what he says:

Dedollarization is dead they are not talking about it anymore .. Brazil is running the summit and said it is not on the table.

There are two examples in this article, one from me and one from China, that disagrees.

He continues:

Modi said it would never be on the table.

Putin said we don’t want it.

Xi Jinping does not want it.

Really?  I don’t know about any of this.  As far as I know, Russia and China trade in local currencies and India as well trades locally with Russia.

He continues:

It is dead because they can’t respond to it .. they can’t come up with an alternative.  There is no alternative to the dollar.

OK, the old TINA but let me quote something that we are all familiar with.  The Euro.  The Euro was implemented and you cannot tell me today that all the BRICS countries together cannot come up with something like a Euro.  And of course BRICS countries can respond, they are doing it now.  So, it seems to me as if Ritter understands dedollarization as a new currency, and BRICS as a group said not at the moment.  But dedollarization is continuing, as you can see from the article from Global Times, clearly showing how to refine the stance of the BRICS countries.

He continues:

“Its Over”.  It is over because of the revolution.  The revolution made continuity of US government go away.  In addition, de-dollarization was going to destroy BRICS.

More we do not need to say, but after you’ve taken in the article from Global Times, go and take a listen to Ritter’s shouting about Its over because of the Revolution and tell me what makes more sense.  I unfortunately only have a Telegram link. https://t.me/ScottRitter/3748

Again, with clarity!  Multipolarity is now a historical reality.  BRICS is the multipolar forerunner in our world.  Alteranative economic and financial systems is in the wake of this.  BRICS is not dead.  Multipolarity is not dead.  Dedollarization is not dead and nothing that Ritter or Trump pronounce can make it dead.