India hosts Brics summit in Delhi to navigate internal divisions and global economic shifts
India hosts the Brics summit in New Delhi this weekend, where leaders from 11 nations will meet to discuss global trade, energy markets, and geopolitical developments. The grouping, which accounts for 40% of global GDP and 26% of international trade, seeks to provide a platform for Global South countries to express their voices outside of Western-led institutions.
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While the bloc was created to challenge the Western-led order, internal divisions among members make a unified strategy difficult. For example, the United Arab Emirates and Iran are on opposing sides regarding the war in Iran, which has dominated global attention this year. These differences often prevent the group from reaching a consensus statement. The administration announced that the Brics grouping will face 100% tariffs if they back another currency to replace the US dollar. Despite this, the group continues to develop the New Development Bank to provide infrastructure projects for emerging economies. Leaders will also explore ways to make cross-border payments in local currencies easier, particularly for members facing severe US sanctions.
Sources
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Trump shadow looms large over Brics as Modi hosts Putin and Xi in Delhi
BBC
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BRICS summit: Is the bloc truly challenging a Western-dominated world?
Al Jazeera