Countries such as India, South Africa and South American Mercosur nations will continue trade negotiations following the indefinite suspension of global trade talks through the World Trade Organization.
The turbulent trade talks of the Doha round stopped on Monday after more than five years. They had been aimed at boosting global economy through increased trade.
In the absence of agreements, agricultural exports from developing countries remain highly marginalized due to high farming subsidies in developed countries such as the U.S. and EU states.
On Tuesday, the Hindustan Times reported that South African chief trade negotiator Xavier Carim told journalists that the talkâ€™s collapse was a blow for developing countries but hoped South Africa could negotiate agreements with India and South American trade bloc Mercosur.
He added that South Africa will also be evaluating the advantages and risks involved in forming a trade pact with China.
For the time being, he said it makes sense to establish a free trade agreement between India, Mercosur, South African Customs Union (Sacu) and the European Trade Association.
Indian Commerce Minister Kamal Nath reiterated on Monday in a press statement, that Indiaâ€™s pursuit for trade deals - multilateral, bilateral and regional- would continue.
Mercosur and Sacu will unite the current economic and trade powerhouses of the developing world namely Brazil, Argentina, India and South Africa. Closely following these deals will be Uruguay, Paraguay, Namibia, Botswana, Lesotho and Swaziland.
Trade between these countries is growing at a steady pace as trade between India, Brazil and South Africa grew from $1.2 billion in 2004 to $2.34 billion in 2005 according to Statistics SA.