Brazil and India: two BRICs as a "building bloc" for South-South cooperation

Given the risks the world economy is still facing and the ascendancy of Brazil and India as major growth poles of the global economy, government authorities in Latin America and the Caribbean should redouble their efforts to identify and capitalize upon the potential complementarities created by greater integration with the BRICs. In view of the inter-industrial nature of trade between India and Latin America including Brazil, the region should seek to create partnerships between its firms and successful Indian companies, in order to gain access to supply chains that produce more complex, technologically sophisticated inputs and services for production units. This is particularly important when growing production and trade complementarities among and between ASEAN+6 countries, now reinforced by free trade agreements, might lead to trade and investment diversion of the region's economies in Asia-Pacific. Brazil and India will continue to be key actors in safeguarding an effective multilateral system and promoting the democratization of the structures of global governance. In respect of the Doha Development Agenda, for instance, both countries should continue stressing the importance of close coordination to effectively bring about the development dimension in every aspect of the negotiations, including climate change. The region should take advantage of the economic buoyancy of China and India, as well as the new ties being forged with those countries, in order to foster innovation and competitiveness within the region. China and India offer investments (particularly in areas such as infrastructure, information and communication technologies and energy) that can supplement the funding of important projects in these sectors.