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RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSA #3772/01 2990738
ZNR UUUUU ZZH
R 260738Z OCT 07 ZDK
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 2435
INFO RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
RUEHBR/AMEMBASSY BRASILIA 0577
RUEHNE/AMEMBASSY NEW DELHI 0466
RUCPDC/DEPT OF COMMERCE WASHDC
RUCNDT/USMISSION USUN NEW YORK 0463
RUEATRS/DEPT OF TREASURY WASHINGTON DC

UNCLAS SECTION 01 OF 03 PRETORIA 003772 
 
SIPDIS 
 
SENSITIVE 
SIPDIS 
 
DEPT PLEASE PASS TO USTR FOR P.COLEMAN 
 
E.O. 12958: N/A 
TAGS: ECON ETRD IMF PREL SF BR IN
SUBJECT: IBSA: SECOND HEADS OF STATE SUMMIT 
 
REF: 05 PRETORIA 4070 
 
PRETORIA 00003772  001.2 OF 003 
 
 
¶1.  (U) Summary:  The Heads of State of India, Brazil and 
South Africa met in Johannesburg on October 17 for the 2nd 
Annual India-Brazil-South Africa (IBSA) Summit.  The leaders 
issued a declaration covering economic, political, 
environmental and other issues.  Although the Summit produced 
few concrete agreements, it constituted high-level political 
endorsement of future trilateral cooperation.  Next year's 
Summit will be held in New Delhi.  End Summary 
 
---------- 
BACKGROUND 
---------- 
 
¶2. (U) Indian Prime Minister Manmohan Singh, Brazilian 
President Luis "Lula" Da Silva, and South African President 
Thabo Mbeki met for the 2nd Annual India-Brazil-South Africa 
(IBSA) Summit in Johannesburg on October 17.  The focus of 
the meeting was trade, although other issues such as reform 
of global institutions and the environment were also 
discussed. The Summit was preceded by a two-day Business 
Council Forum where representatives of the three countries' 
major business associations discussed intra-IBSA trade 
relations.  Parallel working groups were also held for 
specific sectors, including energy, mining, pharmaceuticals, 
infrastructure, financial services, and information 
technology. 
 
-------------------------------------- 
IBSA Summit Declaration and Agreements 
-------------------------------------- 
 
¶3.  (U) The three Heads of State issued a Summit Declaration 
on October 18 that covered a broad range of economic, 
political, environmental and other issues (text faxed to 
AF/S).  Highlights of the Declaration included: 
 
International Trade:  According to the Heads of State, the 
Doha Round has entered a "critical stage." The three leaders 
said that draft modalities texts for agriculture and 
industrial goods provide "a good basis for negotiations," and 
they called for the removal of distortions and restrictions 
in international agricultural trade, stressing that 
agriculture is the key to the conclusion of the Round.  They 
emphasized, however, that progress on agriculture is a 
"development imperative" and must not be linked to the 
"disproportionate demands by developed countries in the NAMA 
and services negotiations."  They also reaffirmed their 
commitment to negotiating a SACU/MERCOSUR/India free trade 
agreement. 
 
Global Institutions:  The three leaders reaffirmed their 
support for multilateralism and the UN system, though they 
stressed the need to "comprehensively reform" the UN to 
reflect "contemporary realities."  They said that the UN 
Security Council should be expanded through the inclusion of 
more permanent and non-permanent members from developing 
countries.  Similarly, they endorsed reform of the Bretton 
Woods institutions. 
 
Nuclear Weapons:  The leaders called for phased negotiations 
leading to the complete elimination of nuclear weapons.  They 
also pledged to cooperate in the peaceful uses of nuclear 
energy under appropriate IAEA safeguards. 
 
Terrorism:  The three leaders called terrorism "one of the 
most serious threats to international peace and security." 
They stressed that "there can be no justification, 
whatsoever, for acts of terrorism," and called for the early 
adoption of a Comprehensive Convention Against International 
Terrorism. 
 
The Environment:  The leaders warned of the menace of global 
warming and called on developed countries to aim at "more 
Qwarming and called on developed countries to aim at "more 
ambitious and quantifiable" greenhouse gas emission reduction 
targets after 2012.  "Significant progress is needed in Bali 
in December 2007," they said.  They emphasized that climate 
change has a "disproportionately high impact on developing 
countries" because of these countries' limited means to adapt 
to its effects. 
 
IPR:  The three stressed that IPR is a tool for economic and 
social development, not an end in itself.  They endorsed the 
 
PRETORIA 00003772  002 OF 003 
 
 
role of the World Health Organisation in discussions about 
the impact of IPR on public health policies. 
 
Regional Politics:  The Heads of State endorsed the New 
Partnership for African Development (NEPAD); called for peace 
and restraint in Sudan, including full implementation of the 
Comprehensive Peace Agreement and support for the UN-AU 
Hybrid Force; noted progress towards a negotiated political 
solution in Zimbabwe; reaffirmed the need for long-term 
support for political and economic reconstruction in 
Afghanistan; and urged dialogue between Israel, Palestine, 
and their neighbors. 
 
Intra-IBSA Business Relations:  The Heads of State called for 
increased trade, investment and tourism within IBSA, and set 
an intra-IBSA trade target of $15 billion by 2010. They 
endorsed joint projects to develop alternative sources of 
energy.  Without offering any details, they called for 
greater defense cooperation.  They also called for joint 
programs in health, agriculture, and scientific research. 
 
¶4.  (U) MOUs and Agreements for Cooperation were signed in 
the following areas:  Wind Resources, Health and Medicines, 
Culture, Social Issues, Public Administration, Higher 
Education and Customs and Tax Administration Cooperation. 
 
----------------------------- 
Words from the Heads of State 
----------------------------- 
 
¶5.  (U) At a joint press conference on October 17, Mbeki, 
Singh, and Da Silva hailed the Summit as a step forward in 
South-South cooperation.  Their remarks suggested an 
awareness, however, that IBSA is still a work in progress, 
with relatively few concrete achievements to date.  According 
to Lula:  "So what happened here (at the Summit)?  I'll give 
you my opinion.  First of all, the political convergence that 
exists between India, Brazil and South Africa.  Secondly, the 
ideological profile between President Mbeki, Prime Minister 
Singh and President Lula is quite similar.  Thirdly, (the) 
seriousness of our Cabinet ministers and our staff.  Fourth, 
we trust in each other." 
 
¶6.  (U) Also stressing the harmony of outlook within IBSA, 
Prime Minister Singh told the media, "We are three large 
functioning countries with respect for human rights, the rule 
of law, there are many similarities between our three 
countries.  Our cooperation seeks to take advantage of these 
complementarities to bring about a people centered approach 
to development....It (IBSA) is a relationship to explore 
mutual benefits, the potential of co-operation between our 
three countries, using our strength to help the countries of 
the South as a whole gain their rightful place in the 
community of nations." 
 
¶7.  (U) For his part, President Mbeki said, "We are all very 
pleased it (the Summit) has focused on achieving results and 
in understanding the work IBSA must do to produce practical 
results that we require to respond to all of the challenges 
that all our countries face.  As part of the focus on these 
practical issues and as an expression thereof, there will be 
a signing of a number of agreements further to consolidate 
this co-operation."  However, Mbeki had almost nothing to say 
about the agreements for the rest of the press conference. 
 
(All quotes are taken from the South African Department of 
Foreign Affairs' website, and have been corrected for obvious 
mistranslations and mistransliterations.) 
 
----------------- 
Q----------------- 
What Did It Mean? 
----------------- 
 
¶8.  (SBU) Post contacts agreed that any meeting of the Heads 
of State of India, Brazil and South Africa is important. 
They admitted, though, that little of substance seems to have 
transpired at the Summit.  One analyst at the South African 
Institute of International Affairs (SAIIA) thought it most 
important that the countries agreed to negotiate a Doha Round 
deal on the basis of draft texts circulating in Geneva. 
Beyond that, he told EconOffs, the economic content of the 
Summit was marginal.  He scoffed at the idea that a 
SACU/MERCOSUR/India free trade agreement could be completed 
in the near future, noting, "SACU and MERCOSUR have been 
 
PRETORIA 00003772  003 OF 003 
 
 
negotiating for nine years, without success.  Now they want 
to include India?"  He said that IBSA had been created to 
push for reform of global institutions such as the UN and 
IMF.  This remained IBSA's key objective, the analyst said, 
but the IBSA partners are "looking for other things to do as 
well." 
 
¶9. (SBU) A contact at South Africa's Department of Trade and 
Industry echoed the SAIIA analyst, telling EconOff that 
"nothing of any great importance" happened in Johannesburg. 
Some sectors, such as agriculture, were dropped from the IBSA 
schedule for lack of interest.  A planned interactive session 
with the Trade Ministers was also canceled at the last minute 
when one Trade Minister was unable to arrive in South Africa 
in time for the meeting.  South African press reports 
dismissed the various MOUs and Agreements as insignificant. 
 
¶10. (SBU) The Executive Director of the Institute for Global 
Dialogue told PolOff October 25 that the most intriguing 
aspect of IBSA is not trade, but rather the initiative's 
proposal to enhance South-South cooperation.  He said that 
Brazil, India and South Africa are grappling with many of the 
same challenges, such as poverty, economic development, and 
social equity.  The three countries are beginning to learn 
from each other in these key areas, with the prospect of 
sharing this knowledge with other developing countries. 
 
------- 
Comment 
------- 
 
¶11.  (SBU) The lack of significant concrete agreements in 
Johannesburg did not mean the Summit was unimportant.  On the 
contrary, the Summit was a high-level political endorsement 
of plans for future trilateral co-operation, which means that 
IBSA, though still in its infancy and unsure of its identity, 
is probably here to stay.  For South Africa, IBSA reinforces 
its status as a Southern leader and permits it to hitch its 
wagon to the stars of two countries with much greater weight 
in global affairs.  While post is skeptical that IBSA will 
revolutionize trilateral trade, IBSA could play a key role in 
South Africa's long-term push to reform global institutions. 
BOST