In today's world, international trade plays a crucial role in shaping the economic landscape, and the BRICS countries are at the centre of this process. Amid geopolitical tensions, reliable trading partners are essential for sustainable development. Our analysis will delve into the essence of international trade, identifying the impact of the BRICS alliance on economic growth, technological development and international connectivity. We will examine the current status and interactions of the member countries, and assess the prospects offered by the accession of new members such as Argentina, Egypt, Iran, Ethiopia, and Saudi Arabia. All these aspects will provide us with a deeper understanding of the role of the BRICS members in the global economy and their strategic contribution to forging new trade and economic partnerships. The study was prepared by SBS Consulting experts to assist the business community, analysts and economic agents in assessing the prospects for interstate cooperation and investing in the development of trade relations.

Current BRICS members

BRAZIL

Brazil is the world's 11th largest economy by GDP and the largest in Latin America, with the services sector accounting for the largest share of GDP. The country is heavily dependent on the supply of machinery and chemicals. Brazil is a major exporter of meat products, coffee, sugar, soybean and oil cake. Being in BRICS, about one-third of the country's exports and imports come from the organisation's member countries. Brazil also cooperates closely with Russia, supplying the latter with soybeans, meat and meat by-products. The Russian Federation, in turn, exports such commodity groups as fertilisers, petroleum products and coal. The New Development Bank (NDB), established by the BRICS countries, is designed to finance projects of the organisation's member countries that would contribute to the improvement of welfare and economic growth. In 2022-2023, three projects have been approved in Brazil to develop the water sector for a total of $2.246 bln.

INDIA

India is the world's 5th largest economy by GDP, with the largest population and cheapest intellectual resources. The largest share of GDP, as in Brazil, is in the service sector. It is a country with developed industry, due to which mineral fuels and lubricants prevail in the structure of its imports. The basis of exports are products of extractive industry and industrial production. It should be noted that the BRICS countries account for 19% and 37% of exports and imports, respectively. In 2022, India mainly exported medicines and nuclear reactors to Russia. At the same time, shipments from our country increased manifold - by 395% compared to 2018. Within the BRICS framework, the NDB finances projects in India related to the development of transport infrastructure.

CHINA

China is one of the world's leading economies and the largest among all BRICS countries. Manufacturing is the locomotive of the country's GDP, as a result of which almost half of all Chinese exports are machinery and transport equipment. To support industrial production, mineral fuels account for a significant share of imports. Despite the fact that in 2022 exports to the BRICS countries amounted to only 12% and imports to 15%, these are very significant numbers in absolute terms. Regarding cooperation with Russia, it is worth noting that the key driver of bilateral trade between the states was the export of raw materials from Russia, which grew by 94% compared to 2018. The NDB in China finances various sustainable development and transport infrastructure projects, totalling $1.2 bln over 2022-2023.

SOUTH AFRICA

South Africa is one of the top 40 economies in the world, centred on the financial and service sectors. The key exports to other countries are fossil fuels and precious metals. Meanwhile, machinery and transport equipment and minerals make up half of imports. China and India account for more than 90% of South Africa's foreign trade with the BRICS countries. The main share of exports to Russia is food products. In exchange, the country receives products of the chemical industry. The NDB not only invests in projects to develop renewable energy and transport infrastructure in South Africa, but also helps rebuild the country's economy after the pandemic.

RUSSIA

Russia is the world's 6th largest economy by GDP (PPP), with the largest territory and mineral resources worldwide. Despite the fact that services account for the largest share of Russia's GDP structure, it is generally quite balanced. The country specialises in the export of natural resources. Russian imports are widely diversified, with chemical products, food products and electronics leading the way. Russia actively cooperates with the BRICS countries, which account for 69% and 47% of exports and imports, respectively. China is Russia's main foreign trade partner within the organisation. In Russia, the NDB finances social and digital infrastructure development projects, and participates in multi-level projects.

Countries invited for accession

ARGENTINA

Argentina is the world's 23rd largest economy by GDP, with the construction, hotel and restaurant industries accounting for the largest share of it. The country is one of the world's largest exporters of soybean, wheat and meat. At the same time, Argentina is highly dependent on imported equipment. Despite the fact that the country is not yet a member of BRICS, active trade is conducted with the member countries of the organisation. The country's main partners are China and Brazil. As for cooperation with Russia, Argentina is supplied with fertilisers, petroleum oils and rubber.

EGYPT

Egypt is one of Africa's largest economies, and half of its GDP is made up of the food industry and the oil and gas sector. The country has large mineral reserves, accounting for more than a third of its exports. Egypt is one of the largest importers of wheat in the world. Mineral fuels and lubricants, machinery and transport equipment are equally significant imports to the country. The BRICS countries account for 9% and 26% of the country's exports and imports, respectively. The largest groups of goods exported by Egypt to Russia in 2022 were food products, as well as hair products and electrical apparatus.

IRAN

Iran is the 40th largest economy, with the service sector being the main one. More than 80% of Iran's exports are natural resources, dominated by oil and petroleum products. Over half of imports are food products, electronics and transport. The state has strong trade ties with the BRICS countries. 46% of all exports go to these countries, whereas imports are even higher - 60%. Iran is an important partner of Russia in international trade. Since 2018, exports from Iran to Russia have increased by 147%. Imports, on the other hand, totalled $1.5 bln over the same period.

ETHIOPIA

Ethiopia's real GDP has been growing steadily since 2018, with the main industry being the service sector. Ethiopia's main trade items are food products and knitwear, with the country being most dependent on provision supplies and manufactured goods. Imports to the state from the members of the organisation account for as much as 56%, but exports from it are not as popular. Trade relations between Russia and Ethiopia are volatile, and consist almost entirely of exports of coffee and legumes.

KINGDOM OF SAUDI ARABIA

Saudi Arabia is the world's 18th largest economy by GDP with a large contribution from the extractive industry. The country is the world's 3rd largest exporter of mineral fuels by revenue. However, it is import dependent on machinery and chemicals. Saudi Arabia cooperates quite closely with the BRICS countries. 36% of exports go to the member states, and 41% of goods come from them. As for cooperation with Russia, it is worth noting that exports grew by 37% compared to 2018. Imports, on the other hand, grew by 78% over the same period.

UAE

The UAE is one of the top 40 economies in the world, with a significant contribution to GDP from manufacturing and mining. The UAE's exports are centred on mineral fuels, while the main imported category is machinery. The state actively cooperates with BRICS countries: China, India and Saudi Arabia are the UAE's key trading partners with a share of over 77% of foreign trade. Trade between the UAE and Russia is based on exports of electronic equipment, tea, cigarettes and imports of precious stones, metals and metal items.

Joint projects of Russia and BRICS countries

Russia, China and India are implementing major joint projects in industry and energy, including the Power of Siberia 2, the Amur GCC and the Kudankulam NPP. Moreover, the first NPP and the Russian industrial zone are being built in Egypt.

Conclusion

International trade is a key driver of economic growth for the BRICS countries. The accession of new members and the deepening of cooperation underscore their desire to expand their influence. The New Development Bank and joint projects indicate long-term prospects for cooperation. Overall, the outlook for the BRICS countries appears encouraging and their role in the global economy will continue to strengthen.