Rich nations distorting global trade: BRICS

Expressing concern over protectionism in a difficult economic environment, the BRICS countries today said the developed nations are undermining the global food security by distorting trade through agriculture subsidies.

Ahead of the BRICS Summit here on Thursday, trade ministers from Brazil, Russia, India, China and South Africa said in a joint statement, "Subsidies in agriculture by some developed countries continue to distort trade and undermine the food security and development prospects of developing countries".

Such protectionism should be shunned, the statement said, after the trade ministers' meeting.

"The ministers emphasised the need to resist protectionist tendencies...," it added.

They have also agreed for a pact to extend cross-country credit in local currencies of the member countries. The MoU in this regard would be signed tomorrow, a Commerce Ministry official said.

Commerce and Industry Minister Anand Sharma, in a joint press conference, said it should be possible for the intra - BRICS trade to more than double to $500 billion by 2015.

At present, it is $212 billion.      

Concerned over the fallout of the European sovereign debt crisis, BRICS countries called for collective efforts to deal with the problem.

"Adversity of financial crisis is being faced by all. There is a need to work together to overcome from this problem," Sharma said.      

China's Trade Minister Chen Deming said, his country would make "due contribution" to a fund to bail out the euro zone from the financial crisis.