Remarks made by H.E. Mr. R. K. Bhatia, High Commissioner of India to South Africa, at the IBSA Business Seminar Sandton: October 16, 2007 Your Excellency Mr. Mandisi Bongani Mabuto Mpahlwa, Minister of Trade and Industry of South Africa Your Excellency Mr. Ivan Ramalho, Executive Secretary, Government of Brazil Honourbale President of BUSA, FICCI and CNI Excellencies, Ladies and Gentlemen, It is my privilege to address this distinguished gathering of political leaders, captains of business and industry, senior officials and other invitees. 2. This Business Seminar, together with other events relating to IBSA, represents an extremely valuable opportunity to us all to contribute to the success of Tshwane Summit of IBSA. The economic dimension of IBSA involving business leaders and business communities of our three countries has undoubtedly enormous significance. The Government-Business Council session tomorrow will go a long way in enhancing the synergy that exists among the three governments and the business communities of the three countries. 3. It is now widely recognized that India-Brazil-South Africa Dialogue Forum has been playing a constructive and influential role in international affairs. Since its inception in 2003, IBSA has come a long way. At the same time, we are conscious that our journey together is going to be a long one because we have so much more to achieve in future. 4. IBSA is a unique collaborative enterprise of three of the largest democratic, developing and multicultural societies - each from a different continent - facing common challenges. They have come together, driven by their common perceptions on many important issues confronting the international community, especially the developing world. They are determined to strengthen and deepen their convergences in order to promote common interests through enhanced cooperation among them. Besides, they are keen on contributing to the development of other developing countries. 5. Thus, political consultations and coordination on international issues of mutual interest; sectoral cooperation on a broad spectrum among the three countries; and assistance to other developing countries, may be considered as the three critical dimensions of this Forum. 6. Trilateral cooperation is a major pillar of IBSA. Earnest endeavours have been underway in order to explore, expand and deepen this cooperation, keeping in view not only the benefit of our three countries but also of our regions and indeed the world at Large. Our three countries have been involved in innovative endavours, at the highest political and business levels, to nurture and strengthen this unique cooperation among the world’s three continental democracies. 7. Trade and investment - related linkages among the three countries deserve to be expanded and strengthened on a sustained basis. In 2005, intra-IBSA trade was valued at $ 7.6 billion, but it accounted for only 1.53% of the total trade of the three countries. This figure alone is a challenge which our business communities must analyse and accept. 8. It is encouraging to note that intra-IBSA trade grew by over 50% in 2004 and by over 29% in 2005. India’s trade with Brazil and with South Africa amounts to about 78% of intra-IBSA trade. What it means is that, while Brazil and South Africa would need to make a greater contribution to intra-IBSA trade, a significant portion of future increase would have to come from India’s entrepreneurs. 9. The target established by New Delhi Plan of Action of 2004 was to reach a figure of $ 10 billion in intra-IBSA trade by 2007. Available indications show that we are on track to achieve this goal. Encouraged by this positive trend, we need to consider setting a higher target for the next three year period. 10. In addition, it would be desirable to give a fresh look to the actual flows of investment among the three countries and to work out a practical road map for enhancing and diversifying them. Perhaps IBSA’s Academic Forum could consider studying this subject in depth and make appropriate recommendations. Besides, our entrepreneurs could also consider setting up companies with equity participation from three countries. 11. At the international level, we in IBSA stand for making the diverse processes of globalization “inclusive, integrative, humane and equitable” as the Brasilia Declaration had put it in June, 2003. Our view is that globalization must become a positive force for change for all peoples, and must benefit the largest number of countries. In this context, we have been coordinating our positions relating to WTO negotiations, emphasizing the need for speedy progress in Doha Development Round. Our strong endeavour is that it culminates in agreements that help fully the interests of developing countries. 12. At the trilateral level, our Action Plan for trade facilitation on standards, technical regulations, and conformity assessment is already underway. Arrangements for customs cooperation are being structured. Most importantly, serious endeavours are underway to translate into reality our leaders’ vision regarding the envisaged India-Mercusor-SACU Trilateral Free Trade Agreement (T-FTA). We have noted with satisfaction that the first meeting of the Working Group on this subject took place in Tshwane on October 6, 2007. We are aware that these discussions were useful and that the decision to undertake a study in order to define the scope and structure of a future Trilateral Trade Arrangement will be followed up actively. Further, we are endeavouring to ensure better connectivity in the field of civil aviation and maritime transport as a means to easier flow of goods and peoples among Brazil, South Africa and India. 13. In this backdrop, we are happy to note that apex business organizations of the three countries have been playing a very constructive role. This will need to be sustained and further expanded through a plan comprising more trade and investment promotion activities such as participation in exhibitions, trade fairs, buyer-seller meets and other similar ventures. Promotion of IBSA trade and investment links should be accorded higher priority. 14. Of course, our trilateral cooperation extends beyond trade and investment sector to such diverse sectors as energy, agriculture, education, health, social development, science and technology, skills development etc. They offer promising possibilities. Consequently, in those and several other areas, our authorities concerned have been engaged in order to craft practical arrangements for cooperation. 15. The more we succeed in deepening bilateral cooperation involving the three arms of the IBSA triangle, the greater contribution we would make to the cause of IBSA. Driven by this logic, the Government of India have taken numerous measures to facilitate and encourage interaction of our companies with those of South Africa and of Brazil. Results are reflected in recent figures of trade and investment flows. 16. An evolving forum, IBSA is set to acquire new dimensions. As H.E. Mr. Pranab Mukherjeee, India’s External Affairs Minister, observed at the joint press conference at the conclusion of the last Trilateral Commission Meeting in Delhi on July 17, 2007: “It will be our endavour to see that IBSA moves to a yet higher level of cooperation, beneficial to our three countries. This will make IBSA an outstanding example of South-South Cooperation.” 17. In conclusion, we are confident that the second IBSA Summit and all its related events will represent a new milestone in the continuing development of IBSA. Through its well-thought out plans and sustained follow-up actions, this institution will be successful in protecting and promoting the interests of our peoples and our regions. Thank you for your attention.