Plan to cut red tape will help boost investment

A key outline document put together by commerce ministers will increase investment and stimulate growth in BRICS countries, a senior Chinese trade official revealed.

Trimming red-tape and streamlining regulations for companies should help open up markets and boost the investment environment for the bloc's members, Brazil, Russia, India, China and South Africa.

"Strengthening investment among BRICS countries will help explore (each nation's) potential and will (increase) cooperation to a new level," said Hu Yingzhi, deputy negotiation commissioner at the Chinese Ministry of Commerce.

Commerce ministers agreed on an outline document in Shanghai last month ahead of the BRICS Summit in Xiamen, the resort city of East China's Fujian province, from Sept 3 to 5.

A key element of the blueprint appears to be cutting red tape by streamlining regulations, which will stimulate cross-border company investment.

The outline document, Hu pointed out, reflected the common desire of BRICS countries to increase investment and boost economic growth, and was a major multilateral initiative.

It follows on, he said, from the global investment guidelines rolled out by G20 Summit leaders in Hangzhou, East China's Zhejiang province, last year.

"It will be an important reference for global investment and will allow BRICS countries to contribute their wisdom and strength in establishing future global investment rules and governance," Hu added.

The blueprint has gained widespread approval.

Mukhisa Kituyi, secretary-general of the United Nations Conference on Trade and Development, felt the outline document will help increase investment policy coordination among BRICS countries.

"(This will) push the transition of the growth model of emerging countries and their sustainable development," Kituyi said.

Marcelo Maia, secretary of commerce and services at Brazil's Ministry of Development, Industry and Foreign Trade, pointed out that boosting investment among BRICS countries would be an "effective weapon" to fight against trade protectionism.

Rob Davies, the South African minister of Trade and Industry said the investment outline (document) will help raise government efficiency and bring more investment opportunities for BRICS countries.