Relevance: GS II (International Relations) & GS III (Economy) | Source: The Hindu / India Today

1. The Big Idea: ‘Unionisation’ of Nations

During his recent visit to New Delhi in February 2026, Brazilian President Luiz Inácio Lula da Silva made a very interesting proposal to protect developing countries from unfair global trade rules.

• The Union Strategy: Before becoming President, Lula was a factory trade union leader. He believes that just as a single worker cannot fight a giant company alone, a small country cannot negotiate fairly with a massive superpower on its own.
• Acting Together: He suggested that developing nations (the Global South) must unite. Instead of making one-on-one trade deals with powerful countries like the US, they should form groups and bargain collectively.
• Demand for Equality: This “unionisation” ensures that developing nations get fair trade deals and are treated as equals on the world stage, without anyone interfering in their internal choices.

2. Why is this Needed Right Now?

• The Tax Threat: Recently, the US threatened to place massive 50% import taxes (tariffs) on goods coming from Brazil and India. This pressure tactic is being used because both countries are part of the BRICS group and continue to buy Russian oil.
• The Weakness of Being Alone: History shows that when a smaller, developing country negotiates alone with a wealthy superpower, the final agreement almost always benefits the superpower and harms the smaller side.
• Stopping a New Cold War: President Lula warned that the world must not be split into rival camps. Developing countries should not be economically punished just because they want to trade freely with everyone.

3. What does it mean for India?

• Shared Problems: Both India and Brazil are currently facing huge pressure from US trade policies. Neither country has been able to sign a fair, complete trade agreement with the US yet.
• A United Front: India actively calls itself the “Voice of the Global South.” Lula’s idea perfectly matches India’s long-term goal of making global trade bodies much fairer for poorer nations.

UPSC Value Box

Important Term	Simple Meaning for UPSC
Global South	A term used for developing and emerging nations (mostly in Asia, Africa, and Latin America) that share similar economic challenges.
Collective Bargaining	A process where a group (like a union of countries) negotiates together to get a better, fairer deal from a much stronger opponent.
BRICS	An important international group of major emerging economies (originally Brazil, Russia, India, China, and South Africa) working to balance Western dominance.

Q. With reference to global trade and international groupings, consider the following statements:

1. The term “Global South” exclusively refers to countries located entirely within the Southern Hemisphere.
2. The concept of “Collective Bargaining” in international trade suggests that developing nations can secure better terms by negotiating as a unified bloc rather than individually.
3. Both India and Brazil are founding members of the BRICS grouping.

Which of the statements given above is/are correct?

(a) 1 and 2 only

(b) 2 and 3 only

(c) 1 and 3 only

(d) 1, 2 and 3

Correct Answer: (b)