The IBSA Dialogue Forum was initiated in 2003 to strengthen political and economic ties between the three developing countries. In September this year, the Heads of Government of the three nations met in Brazil for the first IBSA summit, where they agreed to explore additional areas for trilateral co-operation.

This week's meeting between Gordhan, Jorge Rachid, Federal Revenue Secretary of Brazil and Mr KM Chandrasekhar, Revenue Secretary of India, will build on this to develop further cooperation, especially in the areas of tax and customs administration.

It is also expected that the tax chiefs will discuss the challenges facing customs and tax administrations within the context of globalisation and the rapid expansion of trade, seeking means to combat smuggling, fraud, tax avoidance and other criminal behaviour, while still facilitating the rapid movement of goods vital for continued economic growth.

Trade between South Africa, Brazil and India has risen sharply over the past few years, and is expected to grow even more significantly once a formal trade agreement is in place between the IBSA partners.

Trade between South Africa and Brazil rose to more than R10 billion (US$1.37 billion) in 2005 from R6.6 billion two years earlier. Trade between South Africa and India totalled more than R14 billion last year – more than double that of 2003.