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Cablegate: India, Brazil, South Africa Display South-South

Published: Tue 21 Oct 2008 01:37 PM
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C O N F I D E N T I A L SECTION 01 OF 02 NEW DELHI 002763
SIPDIS
E.O. 12958: DECL: 10/17/2018
TAGS: PGOV ECON PREL SF BR IN
SUBJECT: INDIA, BRAZIL, SOUTH AFRICA DISPLAY SOUTH-SOUTH
SOLIDARITY AT NEW DELHI SUMMIT
Classified By: Acting Political Counselor Pushpinder Dhillon for Reason
s 1.4 (B, D)
1. (SBU) Summary. During the October 15 India-Brazil-South
Africa summit in New Delhi, the three countries:
-- emphasized their solidarity by pledging to work together
to meet shared challenges of the global financial crisis,
while criticizing rich countries for the crisis;
-- signed seven agreements and two action plans, including
a memorandum to facilitate trilateral trade, an accord to
increase tourism between the three countries, and action
plans for better cooperation on sea and air transportation.
-- issued a lengthy "Delhi Summit Declaration," covering
shared views on a multitude of issues, ranging from global
governance to UN reforms to climate change to Doha
Development Round to Iraq to food security and even the
Indian Diwali festival of light;
-- set a target for trilateral trade of $25 billion by
2015; and
-- congratulated themselves for the progress made in the
first five years of the IBSA Dialogue Forum and committed
to begin a second cycle of IBSA summits in Brazil next
year. End Summary.
2. (SBU) Indian Prime Minister Manmohan Singh welcomed
Brazilian President Luiz Inacio Lula da Silva and South
African President Kgalema Motlanthe to New Delhi October 15
for the 3rd Summit of the India-Brazil-South Africa (IBSA)
Dialogue Forum. IBSA has gained in significance for the
Indian
government, evidenced by PM Singh's remarks in the
inaugural address which described a unique relationship
based on common interests in multilateral fora such as
GATT/WTO and the G-20 group of developing countries, as
well as the potential that their trilateral relationship
holds for South-South cooperation and as leaders of
developing countries. PM Singh, in a theme repeated by the
leaders throughout the summit and widely noted in media
coverage, was quick to assert that IBSA had a role to play
in expediting reform of the international financial
architecture for "a more development-friendly world
trading system," noting that turmoil in global markets
further enhanced the imperative of South-South
cooperation. Singh also described how India, Brazil and
South Africa, as leading economies of their respective
continents, also had a responsibility to other developing
countries.
3. (SBU) The summit produced seven agreements: a
Tripartite Agreement on Tourism, an MoU on Trade
Facilitation for Standards, Technical Regulations and
Conformity Assessment, an MoU on Environment, an MoU on
Human Settlements Development, a Five Year Action Plan for
Maritime Development, a Five Year Action Plan for Civil
Aviation, and an MoU on Women's Development and Gender
Equality Programs. The leaders also agreed to direct
their Ministers of Finance, Governors of Central Banks, and
Ministers of Trade and Industry to work together to develop
a response to the financial crisis.
4. (SBU) The summit focused on development issues, with the
leaders calling for "the need to make the structures of
global governance more democratic, representative and
legitimate by increasing the participation of developing
countries in the decision-making bodies of multilateral
institutions." The leaders reaffirmed their support for UN
reforms, especially expansion of Security Council
membership. The leaders also reiterated their support of
efforts to achieve the Millennium Development goals, calling
on developed countries to "fulfill their commitments in the
global partnership...including increasing Official
NEW DELHI 00002763 002 OF 002
Development Assistance (ODA) to 0.7% of their GNI."
5. (SBU) The "Delhi Summit Declaration" was an expansive
document covering many topics. The Declaration highlighted
shared commitments to Global Governance goals, sustainable
development, negotiation of an international regime of
Access Benefit Sharing (ABS) for genetic resources,
protection of human rights, cooperation on an intellectual
property regime, disarmament, non-proliferation, peaceful
uses of nuclear energy, and combating terrorism. It
welcomed resumption of the multilateral WTO process,
especially calling for finalization of modalities in
agriculture and non-agricultural market access (NAMA), and
noting that many Doha Round issues left unresolved were
issues critical to developing countries. The leaders agreed
to collaborate on policy and technology to strengthen energy
security in the three countries, and called on developed
countries to facilitate access to renewable energy technology
by developing countries. The Declaration also called on
countries to deliver promised funding to address food
security
issues. Other topics touched on were regional issues from
the
New Partnership for Africa's Development (NEPAD) to the
Middle
East Peace Process, and, somewhat surprisingly, a section
wishing the government
and people of India well on the occasion of Diwali (the
celebration of light).
6. (SBU) Indian Prime Minister Manmohan Singh said in his
press conference at the end of the summit that the IBSA
countries expect to meet the $15 billion target for
trilateral trade by 2010, and accordingly have set a goal
of $25 billion in trilateral trade by 2015. Brazil will start
the second round of IBSA summits by hosting the 4th IBSA
summit
on 8 October, 2009.
7. (C) Comment. The IBSA Summits have demonstrated the three
governments' commitment to the idea of closer engagement, but
their trade levels still lag. Their $15 billion trade
target is less than 2 percent of their world trade. However,
although India and Brazil have been prominent players in the
Doha Round, both individually and as co-leaders of the G20,
their interests diverge substantially. Brazil appears to
have significant offensive interests in agricultural exports
while India is highly defensive on agricultural market
access. Indeed, India was one of the main barriers to
achieving a deal during the WTO Ministerial in July while
Brazil appears to have played a constructive role in joining
with the EU and US in trying to forge a consensus. Perhaps
these governments can play a more constructive role in the
planned global financial summit, which anticipates expanding
from a narrow G-8 representation to include the governments
of India, Brazil and South Africa.
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