BRICS Cooperation on Maritime Economy: Priorities, Challenges and Path

Xue Zhihua

The maritime economy is becoming an important engine for global economic development and has attracted the attention of countries all over the world. The BRICS 2018 summit in Johannesburg proposed to advance the “Oceans Economy” among BRICS countries and the issue was incorporated in the Johannesburg Declaration.1“Full text of BRICS Summit Johannesburg Declaration,” Xinhua, July 27, 2018, http://www.xinhuanet.com/english/2018-07/27/c_129921358.htm.

Considering the long-term existence of a global ocean governance deficit and the rise of unilateralism and protectionism, there is an obvious need for BRICS countries to promote and deepen their maritime economic cooperation. On the one hand, the maritime economy, as a new area for BRICS cooperation, can further enrich the content of BRICS cooperation and create a new engine for the economic growth of BRICS countries. On the other hand, maritime economic cooperation can serve as a breakthrough for BRICS to jointly participate in global ocean governance and promote its transformation. Since the BRICS cooperation in the maritime economy is still in the initial stage, analyzing the various problems it faces can greatly contribute to the promotion of pragmatic cooperation.

Foundations for BRICS Maritime Economic Cooperation

Economy is an important pillar of BRICS cooperation, and cooperation in the maritime economy is a major effort to explore new areas of economic cooperation among BRICS countries and new drivers for economic growth. While the BRICS cooperation mechanism provides guidance for the vigorous development of maritime economic cooperation, the policy preferences of BRICS countries and their demands for improving global maritime governance serve a lasting impetus for long-term development of the cooperation.

Existing mechanism providing safeguards and guidelines

In the BRICS cooperation mechanism, the heads of state summit focuses on the strategic agenda-setting and decision-making, while the ministerial meeting is responsible for policy formulation and implementation. The existing cooperation mechanism and trade rules provide guidelines for maritime economic cooperation.

On the one hand, the BRICS cooperation mechanism is a guarantee for transforming political consensus into multilateral action. In the Johannesburg Declaration, the BRICS countries recognize the vast potential in cooperation and collaboration in maritime transport, shipbuilding, offshore oil and exploration, aquaculture, port development, marine and coastal tourism, financial and insurance services, as well as coastal industrial zone development. This lays the political foundation for their maritime economic cooperation. After more than a decade of development, the institutionalized cooperation mechanism serves as an effective guarantee for the implementation of leaders' consensus. For example, in order to build a safer maritime space, the Meeting of BRICS Ministers for Disaster Management continues to deepen cooperation in information exchanges on best practices for disaster risk management, and disaster prediction, early warning and effective response. The BRICS Ministers of Environment Meeting has discussed strengthening cooperation in circular economy, biodiversity and comprehensive water resources management, and made efforts to promote the signing of the Memorandum of Understanding on Environmental Cooperation.2“South Africa Hosts Fourth BRICS Ministers of Environment Meeting in Durban,” Department of Environmental Affairs of South Africa, May 17, 2018, https://www.environment.gov.za/mediarelease/fourthbricsministersofenvironmentmeeting.

On the other hand, the trade and investment rules established by BRICS countries offer guidelines for maritime economic cooperation. Based on the Outlines for BRICS Investment Facilitation, the Framework for BRICS Single Window Cooperation, and the Working Rules for the BRICS Demonstration Electronic Port Network, BRICS countries have established demonstration electronic ports to strengthen data sharing in terms of customs, shipping and information technology, which will promote facilitation of trade in goods and enhance interconnectivity. The BRICS E-Commerce Cooperation Initiative emphasizes enhancing cooperation in cross-border logistics and payment, and lays the foundation for realizing information-based maritime economic cooperation.3“BRICS Finds Commerce Consensus,” China Daily, August 3, 2017, http://www.chinadaily.com.cn/business/2017-08/03/content_30338922.htm.In addition, BRICS countries have designed reasonable financing solutions according to the development level and financial status of host countries to reduce financing costs, and support construction of maritime infrastructure, transformation of traditional maritime industries, cultivation of strategic emerging industries and development of modern maritime service industries.

Consistency with policy preferences of BRICS countries

Carrying out maritime economic cooperation is a policy choice made by BRICS countries based on comprehensive assessment of international and domestic political and economic situations. Data released by the International Monetary Fund (IMF) in 2019 shows that the Chinese and Indian economies, despite their stable performance, still face potential risks, and although Russia, Brazil and South Africa have experienced modest recovery, their growth still lacks long-term momentum.4International Monetary Fund, “World Economic Outlook 2019,” March 28, 2019, https://www.imf.org/en/Publications/WEO/Issues/2019/03/28/world-economic-outlook-april-2019.Given this, BRICS countries have attached great importance to the role of the maritime economy in promoting national economic growth, viewing the development of the maritime economy as an approach to enhancing their regional influence and maritime utilization capabilities.

Russia has included the development of the maritime economy in its strategic document Maritime Doctrine of the Russian Federation, which prioritizes the development of energy exploration, aquaculture, shipbuilding and shipping. Russia aims to maintain its status as a maritime power by developing its maritime economy.5Zuo Fengrong, “New Faces of Russian Maritime Strategy,” Contemporary World and Socialism, No.1, 2017, p.133.India and Brazil seek to enhance their respective regional influence by developing the maritime economy. India has made port development, maritime transportation and aquaculture its development priorities, and takes the maritime economy a crucial means of enhancing maritime cooperation and strengthening control over the Indian Ocean.6Shi Hongyuan, “Modi Administration’s Indian Ocean Strategy,” International Studies, No.1 2018, pp.105-123.Brazil is committed to implementing the Atlantic Energy Renaissance program to promote resource exploration and its control over the South Atlantic.7Érico Duarte, “Brazil, the Blue economy and the Maritime Security of the South Atlantic,” Journal of the Indian Ocean Region, Vol.12, No.1, 2016, pp.97-111.South Africa has launched Operation Phakisa, to open up new space for domestic and African economic growth. Specifically, it prioritizes investment in maritime transportation and manufacturing, coastal oil and gas exploration and aquaculture. As for China, it has launched a major strategy to accelerate its progress toward a maritime power by promulgating and implementing its 13th Five-Year Plan for Maritime Economic Development (2016-2020), in which carrying out international maritime economic cooperation and promoting maritime interconnectivity occupy important positions.

From the above-mentioned maritime development plans of BRICS countries, it can be seen that the countries are all paying more attention to the significance of the maritime economy in consolidating their status as international or regional powers. In order to develop their maritime economic cooperation, BRICS countries need to address their financial and technological shortfalls, and leverage their respective comparative advantages to empower maritime economic development.

Complying with BRICS countries' demand to improve global maritime governance

The maritime economy provides an opportunity for emerging powers to gain strategic advantages and rules-making power in the new round of international competition. Therefore, maritime economic cooperation is an important field for BRICS countries to participate in global maritime governance, and it is also a major tool for the countries to promote transformation and improvement of the governance system. Since the maritime economy is an emerging field, its development concepts, patterns and practices are still pending coordination and exploration, which creates conditions for BRICS countries to establish a new paradigm for global maritime public goods. Through maritime economic cooperation, BRICS countries can enhance their influence in the innovation of concepts and rules for the global maritime governance system. They can also introduce the ideas, rules and successful practices formed in their economic cooperation into global maritime governance, thus breaking the monopoly of developed countries in rules-making and accelerating the transformation of global maritime governance system.

As an important representative force for developing countries to participate in global maritime governance, BRICS countries need to work hard to reduce the maritime governance deficit, enhance the representation and voice of developing countries, and provide maritime public goods within their capabilities and responsibilities, highlighting their roles in promoting South-South cooperation, North-South dialogue and the reform of global governance. Greater maritime economic cooperation would not only help BRICS countries gain a competitive advantage in global maritime governance, but would also help integrate the interests and demands of other developing countries into the process of global maritime governance reform, thus achieving equal opportunities and equal rules, promoting sustainable and inclusive development, and making more countries and regions enjoy the benefits of development.

Priorities for BRICS Maritime Economic Cooperation

The maritime economy is the sum of all kinds of maritime industrial activities that exploit and protect the marine environment, and it is closely related to maritime security, maritime science and technology and the maritime environment. The Johannesburg Declaration, by identifying the industrial categories for maritime economic cooperation and proposing strengthening of cooperation in maritime disaster management, has pointed out the direction for BRICS maritime economic cooperation. Although the BRICS cooperation mechanism provides institutional support for maritime economic cooperation, there is still no specific arrangement to coordinate the maritime actions of BRICS countries. Therefore, BRICS countries need to accelerate institutional construction for maritime economic cooperation and its support system.

Maritime industrial cooperation

Maritime industries refer to production and service activities aimed at developing, utilizing and protecting the marine environment, which are a prerequisite for existence and growth of the maritime economy. Through maritime industrial cooperation, BRICS countries can give play to their maritime geographical advantages, promote the transformation and upgrade of their industrial structures, and enhance their economic and trade ties.

First, transforming their maritime geographical advantages into economic development potential. In 2018, the global maritime economy had a total output value of more than US$2 trillion, and the figure is expected to double by 2030.8OECD, “The Ocean Economy in 2030,” October 2018, https://read.oecd-ilibrary.org/economics/theocean-economy-in-2030_9789264251724-en.BRICS countries are coastal countries with long coastlines and vast exclusive economic zones. Russia has important maritime interests and influence in the Arctic Ocean, just like India in the Indian Ocean, China in the Western Pacific, and Brazil and South Africa in the South Atlantic.9C. Raja Mohan, “The New Triangular Diplomacy: India, China and America at Sea,” November 5, 2012, http://carnegieendowment.org/publications?fa=49899&lang=es.Carrying out maritime industrial cooperation would not only help BRICS countries give full play to their maritime geographical advantages and promote utilization of the ocean in their respective regions, it would also enhance the competitiveness of BRICS countries in global maritime economy.

Second, advancing maritime industrial upgrade in BRICS countries. In maritime industries such as maritime transportation, shipbuilding and aquaculture, BRICS countries have strong industrial strengths and international competitiveness. China, Russia, India, and Brazil rank No. 1, 17, 19, and 22 respectively in the global ranking for maritime transportation industry. China, India, and Russia rank No. 1, 7, and 10 respectively in the global ranking for the shipbuilding industry. And China, India, and Brazil rank No. 1, 2, and 15 in the global ranking for the aquaculture industry.10Menon Economics, “The Leading Maritime Nations of the World 2018,” November 10, 2018, https://www.dnvgl.com/news/china-tops-the-table-dnv-gl-and-menon-economics-release-leading-maritimenations-of-the-world-2018-128591.Through maritime industrial cooperation, BRICS countries can take advantage of the high-degree outward orientation of the maritime economy, expand the depth and breadth of their opening-up, utilize comparative advantages, undertake international industrial transfers, further develop their traditional maritime industries, and enhance the quality of their strategic emerging industries.

Finally, promoting trade and investment ties. In 2018, the size of BRICS economies accounted for 23% of the world's total, but their trade, inbound foreign investment and outbound investment accounted for only 16%, 12% and 12% respectively, which demonstrates the still great potential for BRICS cooperation in trade and investment.11Wan Zhe, “Proportion of BRICS Countries’ GDP to Global Total Increases from 12% to 23%,” China Industrial Information Research Network, July 25, 2018, http://www.china1baogao.com/dianping/20180725/5039842.html.Maritime industrial cooperation could give play to their economic complementarity, promote sustainable development and inclusive growth, and also boost capacity building cooperation in the areas of trade and investment facilitation, service trade and e-commerce. By enhancing communication and mutual trust, as well as consolidating the foundations for cooperation, the ability of BRICS countries to develop their trade and investment can be fundamentally improved, which would help them integrate into the global value chain and climb upstream, and better share the benefits of economic growth and globalization.

Institutional construction of maritime economic cooperation

The institutional construction of BRICS maritime economic cooperation would help improve the maritime trade and investment facilitation, and create favorable conditions for rational allocation of resources and management of disputes. Based on a maritime economic cooperation system, BRICS countries could promote exchange of information on maritime trade, investment policies and business opportunities, and strengthen communication among their respective trade and investment promotion agencies, thus providing more opportunities for BRICS enterprises, enhancing the transparency of relevant domestic regulations and business environment, and boosting cooperation in terms of standards, certification, inspection and quarantine. At the same time, the maritime economic cooperation system could help coordinate the allocation of benefits among BRICS countries through rational and balanced distribution of resources and interests, mitigate dissatisfaction and disagreement caused by difference in the countries' respective economic capabilities, maintain the stability of interstate relations, and promote longterm steady development of cooperation.

A cooperation system would facilitate the leading role of BRICS countries in innovating concepts and implementing rules for global maritime economic governance. As a group of emerging powers, BRICS countries can assume the international responsibility of providing public goods for global maritime governance within their capabilities and responsibilities. On the one hand, the concepts of equality, inclusiveness, green development and innovation formed by BRICS in cooperative practices can provide new guidance for global maritime economic governance through a cooperation system, and offer new solutions for reshaping interstate maritime economic relations. On the other hand, BRICS countries could strengthen coordination in the World Trade Organization and the United Nations on multilateral issues involving maritime trade and investment by means of a cooperation system, and promote the implementation of the 2030 Agenda for Sustainable Development, the Paris Agreement on climate change, and the Convention on Biological Diversity.

Construction of support system for maritime economic development

BRICS maritime economic cooperation requires strengthened communication and coordination on issues such as maritime security, maritime technology and the maritime environment. A safe and stable maritime space is conducive to political mutual trust among BRICS countries and laying foundation for maritime trade and investment cooperation. Exchanges and cooperation in maritime science and the maritime environment would bring into play the advantages of some countries in maritime science monitoring and environmental management, and promote the sharing of maritime scientific and technological resources and environmental management experience to facilitate maritime economic cooperation.12United Nations, The Potential of Blue Economy, May 2017, https://sustainabledevelopment.un.org/content/documents/2446blueeconomy.pdf.

Maritime security includes both traditional security issues such as sea power competition and disputes over territorial sovereignty and maritime interests, and non-traditional security issues such as combating illegal fishing, piracy and terrorism. Issues of higher political sensitivity such as sea power competition and maritime disputes test the mutual trust of the BRICS countries, while non-traditional security issues of lower political sensitivity require close coordination and cooperation between BRICS countries. All these issues have a direct impact on the regional scope, approach, and trade and investment security of BRICS maritime economic cooperation. Deepening their maritime security exchanges and cooperation would help BRICS countries broaden their maritime economic cooperation, promote their close coordination, and ensure the smooth development of cooperation.

Maritime science monitoring cooperation involves risk prevention and scientific research related to maritime disasters, environmental pollution, and species invasion. In 2018, property losses caused by natural disasters such as hurricanes and earthquakes in Pacific, Indian and Atlantic Oceans amounted to approximately $160 billion.13Munich Reinsurance, Annual Report 2018, January 2019, https://www.munichre.com/en/ir/annualreport-2018/index.html.BRICS cooperation in maritime industries such as aquaculture, maritime transportation and tourism requires a sound maritime monitoring and early warning system and reliable maritime scientific information to provide guidance for commercial activities. Maritime scientific monitoring cooperation in disaster warning and maritime information collection could provide a scientific basis for maritime industrial cooperation, and help avoid or mitigate the economic losses caused by events such as a maritime catastrophe.

A favorable maritime environment is prerequisite for maritime economic development. In the global seas, there are currently 500 highly polluted “dead zones” in which marine life cannot survive.14United Nations, Towards A Pollution-Free Planet, October 2017, http://www.indiaenvironmentportal.org.in/files/file/Towards_a_pollution_free_planet.pdf.These “dead zones” have not only directly affected aquaculture, maritime tourism and other maritime industries, but also hindered the development of maritime transportation and utilization of maritime resources. In view of the fact that conserving and sustainably using the oceans, seas and marine resources has been written into the 2030 Agenda for Sustainable Development, BRICS countries should make strengthening management of their marine environment a prerequisite for the maritime economic development, not only for the sustainable use of the oceans of individual countries and regions, but also for the sustainable utilization of the global oceans.

Challenges for BRICS Maritime Economic Cooperation

Every BRICS country has issued a macro plan for national economic development. Divergences in terms of strategic positioning and priorities have impeded synergy among the plans. In the meantime, a maritime economic cooperation system among BRICS countries has yet to be established. And maritime security cooperation has made tardy progress compared with the cooperation in maritime science monitoring and environmental management. All this has imposed some restraints on developing maritime economic cooperation.

Divergence in strategic priorities and economic capabilities

In response to changes in international political and economic situations, BRICS countries have adjusted their strategic planning on foreign economic cooperation in recent years and put forward a series of economic cooperation initiatives based on their respective strategic considerations. However, there exists a notable gap in the capabilities of BRICS countries to develop the maritime economy, which will have a negative impact on their relative returns of maritime economic cooperation.

First is the divergence in strategic priorities. Every BRICS country has laid out its own plan for domestic and regional economic development, for example, the Belt and Road Initiative proposed by China, the Monsoon Plan of India, the Eurasian Economic Union of Russia, and the regional economic integration plans of South Africa and Brazil. Differences, or even conflicts, in priorities of the initiatives have imposed challenges for strengthening synergy among the development plans and advancing pragmatic maritime economic cooperation. For example, India, while conceding that the Belt and Road Initiative promotes peaceful development, believes that the Initiative will clash head on with its Indian Ocean strategy, and thus might undermine India's presence in the Indian Ocean.15“Silk Route to Tie India in Knots,” Ministry of External Affairs of India, February 25, 2014, https://www.mea.gov.in/articles-in-indian-media.htm?dtl/22999/silk+route+to+tie+india+in+knots.In terms of competition in external market, the similarity of industrial structures in BRICS countries indicates that export to a third market by one BRICS country will inevitably affect the export by another BRICS country. For example, China and India have apparent competition in export to the United States in terms of shipbuilding, aquatic products, and maritime transportation equipment.16Ouyang Yao, et al., “Shared Growth of Trade between China and Other BRICS Countries,” China Social Sciences, No.10, 2012, p.82.

On the other hand, there is a capability gap in developing the maritime economy. Take maritime transport and the shipbuilding industry as examples. The size of China's shipbuilding industry, reflected in the number of ships it builds, is three times more than that of the other four BRICS countries combined, and the container traffic of China is twice that of the other four countries. In terms of total import and export volume of maritime transport services, all BRICS countries except Russia register trade deficits, which shows that the four countries of China, India, Brazil and South Africa are under major pressure in industrial upgrade and transformation of maritime transport services. According to the Global Trade Alert Report released by the Center for Economic and Policy Research, the trade remedy measures taken by BRICS countries have increased from 251 items in 2009 to 1,776 items in 2016.17“FDI Recovers? The 20th Global Trade Alert Report,” August 2016, https://www.alexandria.unisg.ch/253013/1/GTA20.pdf.The varying capabilities to develop the maritime economy among BRICS countries, once revealed in their cooperation, would result in difference in relative returns, and might further undermine the enthusiasm of some BRICS countries to participate in maritime economic cooperation, or even lead to politicization of economic issues.

Maritime economic cooperation system yet to be established

The institutions and rules established by the BRICS in economic cooperation is of universal guiding significance. However, there is currently a lack of specific institutions and rules aimed at coordinating maritime economic cooperation. To coordinate the activities of BRICS countries in this regard, it is imperative to establish a special cooperation system.

A variety of reasons have led to the lack of BRICS maritime economic cooperation system. The first is the limited size of BRICS maritime trade, which results in the lack of a strong demand for cooperation system. For example, in March 2019, the volume of trade between China and other BRICS countries in fishery products was $35 million, accounting for only 2% of China's total trade in goods with the countries.18“Commodities Import and Export Volume with Some Countries (Regions) in March 2019,” China General Administration of Customs, http://www.customs.gov.cn/customs/302249/302274/302277/index.html.It exemplified that the maritime industry takes up a very small proportion of trade among BRICS countries, and the potential of maritime economic cooperation needs to be tapped. The second is the difference among BRICS countries in focus of maritime economic development, which has led to divergence of their actions and policies. For example, China is interested in export of manufactured products in maritime transport; Russia shows concerns about export of maritime resources, especially energy; India focuses on export of aquatic products; and Brazil attaches importance to maritime tourism and exploration of maritime resources. This has made coordination of maritime trade policies among BRICS countries a very thorny task. Third, the difference in interests among BRICS countries has brought about their divergent positions on the formulation of rules. Disputes remain among China, India and Brazil over the adjustment scope and classification approach for fishery subsidies, as well as the qualification for developing country status, thereby hampering the efforts of BRICS countries to establish unified rules and institutions regarding maritime economic development.

Moreover, to establish a BRICS maritime economic cooperation system, many challenges have to be overcome. First, given the generality of leaders' consensus, there is a need to convert principles into concrete actions. The cooperation system should therefore make it clear how to translate the leaders' consensus into actions and for what purposes. Second, as the maritime economy is closely connected with maritime security, maritime technology and the marine environment, the cooperation system should adopt a proper approach to dealing with other cooperation systems in relation to economy and trade, finance, environment, security and disaster arrangement, and coordinating with industrial and business forums, private think tanks, and scientific research institutes. Finally, the cooperation system should make clear the principles for coordination of different positions and resolve the conflict of interests so as to participate in the global rulesmaking on maritime economic development, thus playing a leading role in conceptual innovation and rules-setting of global maritime governance.

Lack of sound support for maritime security cooperation

Maritime security is an important component of the support system for maritime economic development. Maritime economic activities are dependent on sound maritime transport routes as well as a safe and stable maritime order. However, the progress of maritime security cooperation among BRICS countries has been slow, with cooperation level yet to be elevated and cooperation space to be expanded.

First, maritime security issues have not been prioritized. Except in the Fortaleza Declaration and the Ufa Declaration which touched upon nontraditional security issues such as combating piracy and armed robbery at sea, other documents such as the Goa Declaration, the Xiamen Declaration and the Johannesburg Declaration have ignored this issue. As a permanent mechanism for security cooperation among BRICS countries, the Meeting of BRICS High Representatives for Security Issues has focused its attention on cyber security, energy security, and anti-terrorism issues in the past three years, neither giving specific discussions to maritime security nor producing any cooperation outlines or framework documents. This has proved that maritime security has not yet become a priority for BRICS security cooperation, making the BRICS maritime economic cooperation fall short of strong support.19“Yang Jiechi Attends the Sixth Meeting of BRICS High Representatives for Security Issues,” Central People’s Government of China, September 26, 2016, http://www.gov.cn/guowuyuan/2016-09/16/content_5108739.htm; “The Seventh Meeting of BRICS High Representatives for Security Issues Held in Beijing,” Ministry of Foreign Affairs of China, July 28, 2017, https://www.fmprc.gov.cn/web/zyxw/t1480846.shtml; “Yang Jiechi to Attend the Eighth Meeting of BRICS High Representatives for Security Issues,” Xinhua, June 25, 2018, http://www.xinhuanet.com/politics/2018-06/25/c_1123034047.htm.

Second, the absence of common maritime security interests. The existence of competitive maritime interests is a critical factor affecting the maritime security cooperation among BRICS countries. There are two groups of countries that have divergent interests within the BRICS: one group comprises Russia and China, and the other includes India, Brazil and South Africa. China and Russia share a similar position on maritime security and they work together to balance the pressure from the US-led maritime order through close coordination.20Richard Weitz, “China, Russia and the Challenge to the Global Commons,” Pacific Focus, Vol.24, No.3, 2010, pp.271-297.While India is a member of the Russia-India-China cooperation mechanism, it nevertheless intends to hedge against China's influence in the Indian Ocean by cooperating with US forces.21“Silk Route to Tie India in Knots.”India, Brazil and South Africa, through the IBSA Dialogue Forum and joint military exercises, aim to build a strategic platform connecting the South Atlantic and the Indian Ocean, and India in particular hopes to curb China's influence and ensure it has strategic independence by engaging in these activities.22Francis Kornegay, The Geopolitics of IBSA: South Africa Dimension, August 2017, http://www.ipcundp.org/conference/ibsa/papers/ibsa14.pdf.The divergence in security interests among BRICS countries is likely to have a negative impact on their political mutual trust, raising the risk of politicizing economic issues, and hindering the depth and level of maritime economic cooperation.

Path for BRICS Maritime Economic Cooperation

To cope with the various challenges facing their maritime economic cooperation under the new situation, BRICS countries are supposed to make innovations based on the existing cooperation outcomes, and explore a sustainable path for maritime economic development and cooperation.

Enriching maritime industrial cooperation

Taking advantage of industrial capacity cooperation and project construction, BRICS countries can launch relevant cooperation in the maritime domain, and synergize their national development strategies, thus laying a foundation for boosting strategic mutual trust. In the meantime, BRICS countries should assist maritime enterprises in building their production, sales and services networks through an approach led by the state, supported by private-sector capital and operated under market principles.

First, stepping up efforts to launch capacity cooperation and technological export in maritime aquaculture, desalination of ocean water and its comprehensive utilization, and exploitation of maritime energy resources; supporting fishery enterprises in establishing fishing and aquatic product processing and logistics bases abroad; and deepening cooperation in the fields of customs clearance, food inspection and quarantine, cross-border logistics and transportation, cross-border settlement and payment to promote interconnectivity of fisheries and aquaculture industries.

Second, unleashing technical comparative advantages of BRICS countries in different industrial fields, strengthening cross-departmental cooperation within respective governments, encouraging maritime enterprises to carry out joint design and technical exchanges with overseas research institutes and relevant agencies, establishing industrial technological innovation alliances, and promoting the development of advanced maritime industries such as maritime engineering and maritime equipment manufacturing.

Third, striving to construct a BRICS maritime tourism cooperation network and coordinating national efforts to promote maritime tourism. BRICS countries need to synergize their tourism development strategies, optimize the tourism policy environment, strengthen cooperation in customs clearance and people-to-people exchanges, advance the facilitation of maritime tourism, and spur the integration of tourism and relevant industries.

And finally, building special parks featuring maritime industries, based on existing port industrial complexes, to appeal investment of enterprises worldwide, improving investment efficiency, optimizing the industrial chain, enhancing the construction of supporting facilities, and promoting the development of industrial clusters.

Advancing maritime economic cooperation system in a steady manner

Looking to the future, BRICS maritime economic cooperation would require the countries to establish a maritime economic cooperation system under the BRICS cooperation mechanism. The connection between new system and existing systems would be highlighted and divergences should be properly handled.

First, establishing a BRICS maritime economic cooperation system with the aim of making cooperation more institutionalized and substantive. Its main body should be constituted by the departments in BRICS countries in charge of maritime economic affairs, and operate in the form of “regular meetings + expert working groups.” The task of the regular meeting mechanism should be to implement the leaders' consensus, translate it into domestic policies and legal actions, coordinate with the existing cooperation systems, conduct exchanges and consultations and formulate policy options through cross-departmental dialogues and joint meetings. The task of the expert working group should be to enhance collaboration with industrial and commercial forums, private think tanks and scientific research institutes. On the one hand, it should identify the difficulties confronted by enterprises in their maritime economic activities, and give policy advice to the meeting on maritime economic affairs; on the other hand, it should deepen coordination and cooperation in maritime trade and investment rules-making, research on strategic emerging maritime industries, and maritime disaster prevention and mitigation together with private think tanks and research institutes.

Second, the maritime economic cooperation system should be committed to maximizing the reciprocity of benefits. It should first face up to the different capabilities and priorities of BRICS countries in developing the maritime economy, and translate the countries' political pursuit of maritime influence into actions of economic cooperation to scale up the foundation of cooperation. Based upon a maritime economic cooperation system, it should then establish preferential trade arrangements for maritime economic cooperation, define the rights and obligations of countries, and advance the signing of free trade agreement in good time, to institutionalize BRICS maritime economic cooperation. The cooperation system can function as a platform for BRICS countries to settle trade disputes through dialogue and consultation; in the meantime, a dispute settlement mechanism can be established within the system to coordinate and resolve internal trade disputes.

Promoting maritime security cooperation from low-sensitivity areas

The maritime security cooperation of BRICS countries can provide a security guarantee for maritime economic development. Comparatively, the South Atlantic may be a priority area for BRICS countries to conduct maritime security cooperation. On the one hand, Brazil intends to guarantee its national security by security cooperation in the region, while South Africa is ambitious to become a pivotal nation linking the Indian Ocean and the South Atlantic. Russia and China can provide necessary funds, technology and personnel training assistance to Brazil and South Africa in supporting their security capacity building.23Alcides Costa Vaz, “Brazilian Approaches to Maritime Security Cooperation in IBSA and the Prospects for an Atlantic-Indian Maritime Security Governance,” Journal of the Indian Ocean Region, Vol.11, No.2, 2015, pp.170-183.On the other hand, the South Atlantic is home to an important maritime energy transportation route which demands international cooperation to prevent and resolve grave pirate and maritime disaster threats. The proposed cooperation would not only safeguard BRICS countries' own maritime interests, but also provide public goods for regional security and stability.

In addition to cooperation in geographical areas, BRICS countries can extend maritime security cooperation to low-sensitivity fields, which can be gradually realized in three steps. First, reaching leaders' consensus on maritime cooperation in low-sensitivity areas at a proper time, and establishing regular cooperation mechanisms on combating illegal fishing and piracy, early warning and monitoring of maritime disasters, and protection of endangered maritime species and the marine environment. Second, setting up a maritime cooperation center and building it into a platform for releasing information on investment, marine environment, natural disasters, etc., to help BRICS countries invest in maritime projects. Third, consolidating the outcomes of existing cooperation, seeking the convergence of security interests, pushing for cooperation in maritime law enforcement and technologies for maritime resources development, to expand the space for maritime security cooperation.

Conclusion

Despite the great gap in the capability of BRICS countries to develop the maritime economy, there is huge potential for them to conduct maritime economic cooperation. The development of the maritime economy will boost the industrial upgrade of BRICS countries, accelerate the shift of driving forces for economic development, and inject new impetus into the economic growth of BRICS countries. It is also conducive to the in-depth synergy of their development strategies. If BRICS countries can establish an institutionalized platform for maritime economic cooperation, it would facilitate the exchanges and consultations among BRICS countries, thus achieving coordination of their maritime interests. BRICS countries could then take advantage of this platform to coordinate the synergy of their economic development strategies as well as maritime economic cooperation. A BRICS maritime economic cooperation system can be expected as long as the countries can find the common ground and put aside their differences.