Description
Australia’s BRICS strategy can boost trade, peace, and sovereignty. Discover how shifting alliances reshape our global role.
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Introduction
Johannesburg, September 2025 — The thunder of applause echoed through the Sandton Convention Centre as the expanded BRICS bloc welcomed Egypt, Ethiopia, Iran, and the UAE. Watching the livestream in his Canberra lounge room, wheat farmer Tom Wallace felt a familiar knot tighten in his stomach. Fertiliser costs were rising, U.S. steel tariffs hit hard, and uncertainty about Australia’s next nuclear-submarine bill kept him up at night.
“If half the world’s population is striking new trade deals, why are we still clinging to Washington’s coat-tails?” he wondered.
Problem → Australia’s alignment with the United States is exposing its economy to volatility and missed opportunity.
Why it hurts → Households, exporters, and public services bear the cost while global influence shifts elsewhere.
Solution → A balanced approach through Australia’s BRICS strategy can expand our trade, boost resilience, and enhance sovereignty.
The Problem: Staying in Washington’s Shadow
1. Tariff Shocks
In July 2025, the U.S. imposed tariffs of up to 50% on Australian aluminium and steel.
2. AUKUS Blowouts
Projected spending on the AUKUS submarine program is expected to reach AU$18 billion by 2029, as part of a long-term total exceeding AU$368 billion over 30 years.
3. Missed Trade Growth
BRICS now accounts for 41% of global GDP (Purchasing Power Parity, PPP) and includes 4 of Australia’s top 10 trading partners.
Case in point: In 2024, an Australian lithium start-up targeting a supply deal with Tata Motors in India encountered a significant hurdle: its finance provider excluded support for deals settled in rupees. This reflects a broader challenge: Australian exporters often struggle to secure finance when trading in non-dollar currencies, which limits diversification opportunities and potentially costs jobs—a clear example of how dollar dependence blocks new trade.
This highlights the urgent need for Australia’s BRICS strategy to include alternative financing arrangements that support multi-currency trade.
Why It Hurts: Deeper Economic & Social Wounds
• Public Money Drain – Billions spent on defence hardware instead of TAFE, housing, or healthcare.
• Commodity Dependence – Heavy reliance on China and the U.S. for exports exposes Australia to price cuts and political retaliation.
• Strategic Insecurity – Increased US base access makes Australia a high-value target in any Indo-Pacific conflict, raising insurance premiums for northern ports. This is not just theoretical—expanded US military infrastructure in Darwin and other northern regions has already drawn concern from defence analysts and insurers. The Port of Darwin is considered to be under heightened risk in global assessments.
• Lost Innovation – U.S. ITAR rules restrict Australian companies from exporting tech with U.S. components.
The Solution: A Three-Tier BRICS Strategy
By pursuing Australia’s BRICS strategy, we can shift from dependence on traditional partners to targeted engagement with emerging economies.
1. Diplomatic Engagement
• Seek observer status at the 2026 BRICS Summit (Kazan)
• Sign an MoU with the New Development Bank for non-dollar trade settlements.
2. Trade & Investment Pivot
The following sectors show where Australia’s BRICS strategy can unlock new value through focused diversification.
| Sector | Current Focus (US/China) | BRICS Opportunity | Action |
|---|---|---|---|
| Critical Minerals | 65% exported to China | Expand to India & Brazil | Partner with BRICS banks to co-finance refining plants, enabling foreign-currency trade inputs while retaining domestic monetary sovereignty |
| Green Hydrogen | In the early stages | UAE & Saudi seek imports | Launch export pilots in Western Australia |
| Education | 28% of students from China | South Africa & Iran show growth | Offer scholarships, simplify student visa programs |
3. Peace-Focused Defence & Green Industry
• Cap AUKUS spending and redirect funds to a National Resilience Corps
• Use dollar sovereignty to fund a Green Steel Export Hub in Whyalla
Balancing Sovereign Currency with Real Trade Needs
Critics of Modern Monetary Theory (MMT) often argue that Australia’s sovereign ability to issue currency doesn’t translate into power in international trade, since other nations, including BRICS members, won’t accept AUD directly.
This is true: countries want tangible exports, such as lithium, wheat, and iron ore, not fiat currency. But this does not invalidate MMT. It clarifies its boundary: sovereign spending creates capacity internally (for jobs, education, infrastructure), while external trade requires productive capacity in tangible goods and services.
Australia’s monetary sovereignty provides it with the fiscal space to invest in highly tradable sectors, such as green hydrogen and processed critical minerals, that interest BRICS nations. Reality underscores the need to align domestic investment with external trade demand.
This reinforces the need for Australia’s BRICS strategy to align domestic investment with the real-world demands of global trade.
Australia Risks Being on the Wrong Side of History
Australia can no longer afford a single-track alliance. A forward-looking, Australia’s BRICS strategy offers real alternatives. As global power shifts toward multipolar cooperation, led by countries seeking financial independence and inclusive development, Australia risks falling behind.
Clinging to outdated alliances while ignoring emerging global platforms weakens our influence and growth potential. We must recognise this shift and reframe our foreign policy with sovereign foresight.
Key Insights & Next Steps
A forward-thinking BRICS strategy for Australia offers more than just trade. It gives us options: for peace, progress, and prosperity. Diversifying alliances does not mean abandoning values — it means acting with sovereign intent.
Q&A: Reader Concerns
Q1. Will BRICS membership undermine Australia’s human rights record?
No. Australia can set binding labour and climate conditions in all trade deals.
Q2. Can we balance BRICS engagement with US alliances?
Yes. India and Japan already manage a complex overlap between the Quad and BRICS. A well-calibrated Australian BRICS strategy can achieve the same goals without compromising security ties.
Q3. Could BRICS become another dependency?
Only if we let it, strategic caps and strong regional ties will prevent over-reliance.
Question for Readers
Do you believe Australia should remain tied to outdated alliances or take bold steps by advancing Australia’s BRICS strategy to align with a changing global order?
If implemented thoughtfully, Australia’s BRICS strategy could reposition us for success in a rapidly shifting world order.
References
Geopoliticaleconomy.com | BRICS expands with new partner countries
Cockatoo.com.au | BRICS 2025: Impact on Australia…
Carnegieendowment.org | Quiet crisis in the U.S.–Australia alliance
Constructor.net.au | Case for & against Australia joining BRICS
The Diplomat.com | Australia rejects U.S. defence-spending push
Why Australia is falling out with the U.S.
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Explore how Australia’s BRICS strategy supports our path to peace-first diplomacy and trade resilience.