Xiamen (China), Sep 4 - In a bid to boost economic growth and partnership, the BRICS Summit of five emerging economies pledged to remain committed to an open and inclusive world economy and firmly oppose protectionism.
“We emphasise on the importance of an open and inclusive world economy enabling all countries and people to share in the benefits of globalisation,” said the BRICS Xiamen Declaration released after the 9th Summit.
The BRICS countries — Brazil, Russia, India, China and South Africa — said they remained firmly committed to a rules-based, transparent, non-discriminatory, open and inclusive multilateral trading system as embodied in the World Trade Orgainsation.
The declaration emphasised the importance of an open and resilient financial system for sustainable growth and development.
"We resolve to foster a global economic governance architecture that is more effective and reflective of the current global economic landscape, increasing the voice and representation of emerging markets and developing economies," it said.
To curb corruption, the five nations decided to create a fair and modern global tax system that will address issues like tax evasion by shifting of profits to safe havens and to promote exchange of tax information that will seek to curb the practice.
The 25-page BRICS Leaders Xiamen Declaration said: “We reaffirm our commitment to achieving a fair and modern global tax system and promoting a more equitable, pro-growth and efficient international tax environment, including to deepening cooperation on addressing Base Erosion and Profit Shifting (BEPS), promoting exchange of tax information and improving capacity-building in developing countries.
“We will strengthen BRICS tax cooperation to increase BRICS contribution to setting international tax rules and provide, according to each country's priorities, effective and sustainable technical assistance to other developing countries.”
Base erosion and profit shifting (BEPS) refers to tax avoidance strategies that exploit gaps and mismatches in tax rules to artificially shift profits to low or no-tax locations.
The declaration welcomed the establishment of the New Development Bank (NDB) Africa Regional Centre launched in South Africa, which is the first regional office of the bank.
“We encourage the NDB to fully leverage its role and enhance cooperation with multilateral development institutions, including the World Bank and the Asian Infrastructure Investment Bank, as well as with the BRICS Business Council, to forge synergy in mobilising resources and promote infrastructure construction and sustainable development of BRICS countries.”
The member states signed four agreements at the Summit. The four documents are: BRICS (Brazil, Russia, India, China, South Africa) Action Agenda on Economic and Trade Cooperation; BRICS Action Plan for Innovation Cooperation (2017-20); Strategic Framework of BRICS Customs Cooperation; and Memorandum of Understanding between the BRICS Business Council and the New Development Bank on Strategic Cooperation (NDB).