Although the declaration does not specify how these general objectives will be achieved, it is possible that a free trade agreement could be concluded, either between the nations concerned or, perhaps, in order to make each of them more attractive, to divide such an agreement into the existing Eurasian Economic Union (EAEU). The EAEU is a Moscow-derived initiative that encompasses Armenia, Belarus, Kazakhstan, Kyrgyzstan and Russia, and is located on a territory stretching from the borders of the European Union to china`s borders. It has a population of 390 million and a GDP of 1900 billion dollars. Intra-EAEU trade has increased by 30% per year. The EAEU is a free trade bloc, a structure that China has not developed as part of its own free trade agenda. Although the proposed pan-Asian PANEP agreement is considered by some quarters to be led by China, it is imprecise – it was first proposed by ASEAN and was widely supported by Japan. On free trade, China has focused instead on bilateral free trade agreements and has also launched the Belt-Road initiative – although not a free trade area – or DIE BRICS. The BRICS must enter into a kind of free trade agreement, it becomes more urgent now that Member States have agreed on the need to “increase economic growth”. It is similar to the European Union and NAFTA, which aim to reduce or completely eliminate import and export duties in order to promote the free movement of goods through border countries. The main driver between the creation of trade agreements is the economic model of comparative advantages, which says: the ability of an individual or group to carry out a specific economic activity (. B, for example, the production of a particular product) more efficiently than another activity.
But just because they have a trade agreement between them does not mean that they will not trade with the West. Many countries still depend on the United States and Canada for oil, vehicles, machinery, mineral fuels and plastics. However, the introduction of free trade between BRICS members and the Eurasian Economic Union remains interesting. The EAEU has already indicated that it is ready to sign agreements with non-Eurasian countries and Morocco, Egypt, Mozambique and Namibia (border countries with BRICS member South Africa) are currently on the agenda. Russia has developed free trade zones in Africa and Asia, and China has done the same – I wrote in the article about how foreign investors can benefit from China`s Belt-Road initiative in Africa Despite the current partial lack of free trade links, it is clear that steps are also being taken to address it. This makes the prospect of a BRICS alignment with the EAEU more likely. If so, such a free trade area could look like this: in July 2014, the Governor of the Central Bank of Russia stated: Elvira Nabiullina, that “BRICS partners support the establishment of a system of multilateral swaps to transfer resources to one country or another if necessary” in an article that concluded that “if the current trend continues , the dollar will soon be abandoned by most of the world`s major economies and expelled from global trade finance. [33] However, a summit in July 2015 proved that there was a future for this multilateral trade agreement.
netviper digital studio