Earlier this week Niel Joubert, one of our directors, had the privilege to attend the inaugural meeting of the BRICS Business Council in Johannesburg as a business delegate.

South Africa formally joined the BRICS group in December 2010. The BRICS group is an international forum encouraging commercial, political and cultural cooperation between the BRICS nations in an effort to reduce the dependence of developing countries on the West. The five members of BRICS (Brazil, Russia, India, China and South Africa) decided in March this year at the BRICS Summit held in Durban to form a Business Council to facilitate trade and development between its members. The Business Council's founding Declaration states that the Council should constitute a platform that will strengthen and promote economic, trade, business and investment ties among the business communities of the five BRICS members, as well as ensure that there is regular dialogue between the business communities of the BRICS nations and the governments of the BRICS countries.

South African businessman Patrice Motsepe was named as the first chairperson of the Business Council. The BRICS countries have each nominated five business leaders to make up the Council. The four other South Africans who will serve on the body are Business Unity SA CEO Nomaxabiso Majokweni, Zungu Investment Company executive chairman Sandile Zungu, Sekunjalo Investments CEO Iqbal Surve, and Transnet CEO Brian Molefe.

The Business Council made the following main recommendations at the conclusion of its meeting in Johannesburg:

• BRICS governments should facilitate convenience in expediting multiple-entry business visas for longer periods as well as consider a proposal to create a BRICS business travel card
• To enhance connectivity within and between the BRICS members
• To create an information exchange platform (BRICS business portal) which will be facilitated by the BRICS Business Council Secretariat
• To increase cooperation on harmonisation of technical standards
• To signal the interest of the BRICS Business Council in respect of the BRICS Development Bank and to appeal to Governments to accelerate the formation of the Bank
• To increase value-added trade among BRICS countries
• To address tariff and non-tariff barriers to trade between BRICS members.

The meeting was attended by President Jacob Zuma, who also addressed the meeting together with prominent business leaders from South Africa and the rest of the continent. This gave a strong signal to the rest of BRICS that South Africa is taking its membership of BRICS very seriously. In the light of the decline in South Africa's traditional export markets and the economies of its main trading partners, its relationship with its fellow BRICS members is becoming increasingly important.

© Trade Law Chambers 2013