Thursday, June 02, 2011

ECONOMY - Turkey urges OIC members to ratify origin rules for PTA

Turkey urges OIC members to ratify origin rules for PTA
Turkish president has called on member countries of the Organization of the Islamic Conference (OIC) to ratify the rules of origin agreement that would effectively lay the legal foundations of a preferential trade deal among OIC members.

"One more country needs to ratify the rules of origin agreement to complete the legal basis of the preferential trade agreement. I am calling on member countries to complete the ratification procedures," Abdullah Gul said in a message he sent to the 27th meeting of the Standing Committee for Economic & Commercial Cooperation (COMCEC) of in Ankara.


The "Preferential Trade System" envisages a transition to a three-step tax reduction system among Muslim countries. To be launched, the plan requires the approval of at least 10 member states.

"The functioning of the preferential trade deal would further boost trade among the OIC countries." (source)

Gul said the preferential trade agreement would make the biggest contribution to secure a more liberal regime of free movement of goods among OIC members, adding that cooperation was vital in order to keep up with global competition.

Gul said the Muslim world harbored a major potential for economic and social development, however, added that it failed to materialize that potential.

"Despite our rich natural resources we have some structural problems in our countries such low average per capita income, poverty and lower standards in education and health. Overcoming those problems necessitates a full-fledged economic development, and stable, transparent and accountable administrations," Gul said.

Gul also said the ongoing social and political turbulence in certain Muslim countries housed some risks in the short term but in the longer term they promised great opportunities for democracy, peace and prosperity.

The COMCEC was established during the Third Islamic Summit Conference held in Mecca, Saudi Arabia, in 1981. COMCEC became operational at the Fourth Islamic Summit in 1984 with the election of the president of Turkey as its chairman.

The committee aims at developing economic and commercial cooperation among the member states.

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