Muslim countries take step to boost trade

Five Muslim countries signed a Rules of Origin Agreement under the framework of the Trade Preferential System Agreement among the Organization of the Islamic Conference (TPS-OIC) countries in Ankara yesterday.

Along with Turkey, representatives from Jordan, Tunisia, the United Arab Emirates (UAE) and Guinea put their signatures to the agreement, aiming to create a common denominator of trade among its members.

Minister of State for Foreign Trade KürÅŸad Tüzmen emphasized in a speech after the deal that the agreement marks the first of such attempts and that it will pave the way for large-scale economic integration among Muslim countries.

The signing came after the fourth meeting in the second round of talks for TPS-OIC trade negotiations. Other members of the OIC will also push to sign the agreement soon after they make the necessary adjustments in their domestic legal systems. It is expected that all signatures will be obtained by October.

Tüzmen recalled that in the meeting of trade ministers last year OIC members decided to finalize all the talks and reach an agreement late this year so that the system will become effective by the beginning of 2009 at the latest. “This challenging target was reached even earlier than planned,” Tüzmen noted, adding: “By signing the TPS-OIC Rules of Origin Agreement, we have completed the legal infrastructure for the realization of a preferential trade system among Muslim countries, which was the most important project of the OIC Standing Committee for Economic and Commercial Cooperation (COMCEC).”

Tüzmen also underlined that the agreement will provide a basis for the liberalization of trade, investment and capital movements among Islamic countries “in the widest possible way.” For him the framework agreement for the establishment of the TPS-OIC was like the foundation of a building. “On this strong foundation we have constructed the main body of the building with the Preferential Tariff Scheme (PRETAS) and the Rules of Origin Agreement,” he said.

Arguing that Islamic civilizations had illuminated the world for centuries in the past and brought peace, comfort and welfare to the whole of humanity, Tüzmen noted that economic might had moved from these countries to the West. In order to overcome the hurdles emerging as a consequence of globalization and draw the most benefit, Islamic countries have to come together and act, Tüzmen added. This recent agreement will contribute significantly to the development of member states’ economies, he asserted, adding that a more important aspect will be the improvement of trade relations among “brother” nations, as Islam connects its followers with a tie of religious brotherhood. “If a brother wouldn’t prefer his own brother for trade, who else should he choose as a trade partner? Who can embrace a brother more sincerely than his own brother,” he asked.

Tüzmen also mentioned about halal standards, a set of rules to mark that certain products comply with Islamic methods of production. The halal market is rapidly gaining importance not only for Muslim countries but for all countries that have a large Muslim population, the minister asserted. But the different halal standards being applied in various countries are posing a real obstacle to the development of a global halal market, Tüzmen claimed, adding: “The OIC has a special responsibility in forming a de facto set of standards. It would be very useful to handle this situation under the OIC’s roof, to provide a shelter for its reliability and to remove the chaos. We are offering to take this issue into consideration at the next meeting, if possible at the 23rd COMCEC meeting between Oct. 14 and 17, 2007, in which the trade ministers of member states will participate. Turkey will prepare a working paper on this issue and will deliver it to member states at that meeting.”