ISTANBUL, 27 November 2004 — Government officials and businessmen from 55 Muslim countries have reaffirmed the commitment to removing trade obstacles to foster closer economic and commercial cooperation among their states.
In resolutions adopted at the conclusion of a four-day economic conference that groups together member countries of the Organization of the Islamic Countries (OIC), the delegates acknowledged that the average economic performance of their countries as a group remained below that of all developing countries, thus showing more vulnerability to the adverse external shocks in the world economy such as financial crisis, fluctuations in international trade and instability in financial flows. The participants however said they are committed to strengthening of the intra-regional trading systems through mutual economic cooperation and progressive trade liberalization policies and the development of economic infrastructure.
Among the most serious challenges confronting OIC countries’ efforts to enhance their economic progress and increase their share in the world economy are high levels of external debt and poverty. The conference stressed the need for creating a more practical, equitable and transparent development strategies and economic structural reforms with the active participation of the private sector and the civil society.
Saudi minister of trade and industry, Dr. Hashim Yamani, called for activating the OIC Preferential Trade Agreement which saw several states signing its documents during the conference, as an important means for increasing commercial and economic cooperation among the Muslim countries.
Dr. Yamani said a host of obstacles continue to hinder the progress of economic cooperation among Muslim countries, with the high cost and lengthy duration to finalize arrangements as well as illegal practices accompanying the process of being the main constraints. He suggested setting up national committees and conclusion of agreements among Muslim states to encourage trade exchanges through simplifying arrangements to facilitate the movement of goods.
Stressing the vital role of the transport sector boosting trade exchanges among Muslim countries, Dr. Yamani outlined the steps taken by the Kingdom to develop this sector. Saudi Arabia has 50,000 kilometers of paves roads in addition to another 117,000 kilometers of agricultural roads, 8 seaports with 184 berths serving foreign trade, a railway system that serves part of the Kingdom with new projects either being implemented or under study.
At a special business forum that grouped together the ministers and government representatives with the businessmen taking part at the conference, the businessmen presented the ministers with 13 proposals which they said could lead to solving many of the problems hindering the flow of trade among Muslim countries.
These include harmonizing the legal framework in terms of investment legislation to allow the flow of foreign direct investment, establishing an organization for risk management in the banking system for the insurance of all transactions within the banking system, establishing an institution responsible for the financial data processing and analyzing of bank risks to harmonize banking regulations among OIC countries, simplifying visa procedures and strengthening diplomatic representation, precise and proper assessment of infrastructures, competencies, demand and supply in each country enhancing OIC network and similar portals for sharing information, training of human resources and exchanging expertise, setting international standards and implementing these in products and services benefiting from other regional organizations experience, namely the European Union, in matters relating to harmonizing foreign trade regimes and removing custom barriers.
On the impact of the liberalization of world trade through the World Trade Organization on OIC members the conference welcomed the progress made in the efforts aiming at phasing out agricultural subsidies which has negative impact on the producers of developing countries and called for the quick implementation of the phasing out of these products.
The conference emphasized that in order to uphold the universality of WTO encompassing participants of all countries there is a need to ensure that politically motivated considerations and non-trade issues should not be an impediment to the accession of any country to the organization. Iraqi minister of trade, Muhammad Al-Jobouri, called on Muslim countries to back his country’s accession to the WTO as full member. He said Iraq is looking forward to constructive economic cooperation with all OIC member states and called on these countries to back his country’s efforts to overcome its economic woes and rebuild its devastated infrastructure.
