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Doha 13th, 14th October 2000 |
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The Expert Group Meeting on The Implication of Stablishing on ICM |
Following in-depth discussion, the Expert Group Meeting reached the conclusions and recommendations as follows :
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The Expert Group concluded that there a number of pre-requisites and enabling conditions that are required to be fulfilled with a view to reaching the goal of the Islamic Common Market. Accordingly, the OIC Members States need to approach this ultimate goal of setting up a common market in a step by step manner.
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In order to fulfill these pre-requisites and enabling conditions, the Member States need to concentrate on the existing institutions and the various regional and sub-regional arrangements, which may be considered as the building blocks leading to the ultimate objective. In this connection, the Group found that the implementation of the Plan of Action for Economic and Commercial Cooperation among the OIC Member States provides the necessary basic framework for cooperation, Accordingly, its implementation needs to be expedited.
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The Group also found in this connection that the OIC framework Agreement on Trade Preferential System, which was signed in 1991 with 22 Member States signing it at present, also provides a basic framework for setting up a system of preferential trading arrangement as a first step to wards the ultimate goal. The Group, therefore, urged the Member States, who have not yet signed or ratified the document, to do so expeditiously.
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The Group noted at paragraph 16 of the background report of the OIC General Secretariat quoted from the document “ Preparation of the Ummah for the Twenty First Century in the Area of Economic, Trade and Finance Cooperation among the OIC Member Countries” which provided precisely the objective that the OIC might pursue in this regard. The quotation reads as follows:
"The establishment of the Islamic Common Market is an imperative if Muslim countries are to deal with powerful international economic blocks on an equal footing. The creation of this market, pursued as an ultimate objective, would require a series of intermediate steps in forms of bilateral as well multilateral agreements, partnerships, free trade zones, tax treaties and customs unions among the Muslim countries. The pursuit of that objective should set in motion the moves towards reduction and ultimate elimination of restrictions on the low of goods, capital, and human resources between different countries within the Islamic Ummah".
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The group felt that there was a need t approach this subject in a coherent manner with a view to seeking a comprehensive and phased strategy leading towards the objective. It felt the necessity of bringing together the various ideas and concepts. For this purpose, a follow-up mechanism under the auspices of the COMCEC should be created with a view to monitoring the activities in this area.
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The Group felt in this connection the necessity of making use of the expertise as well as the on going works on this subject of the various subsidiary, specialized and affiliated bodies of OIC, e.g. ICDT, SESRTCIC, IDB, ICCI and others.
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The Group enlisted a number of justifications for setting up a common market, apart from the usually cited ones, i.e., the need to boost collective self-reliance and enhance the negotiating position of OIC vis-à-vis WTO and other institutions, which are as follows:
- Benefit from scale of economies due to market enlargement.
- Advantage of the division of labour and developing niche specialization and skills across the region.
- Attracting foreign direct investment by presenting the OIC Member States as a bloc with a dynamic market.
- Promotion of political cohesion and security needs of the OIC Member States as bloc.
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The group felt that special emphasis be laid on the following with a view to promoting intra – OIC trade:
- Promotion of export marketing and export financing .
- Creation of data base on trade control measures initially at the sub-regional level and automatic notification system.
- Development of exchange of trade information.
- Promotion of Electronic Commerce.
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The Group observed that there are complementarities existing in the OIC countries, which can be expanded drawing upon the wealth of natural resources and other exportables of the OIC Member States. The Group felt the need to focus inquiry into this aspect.
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The Group felt that, in order to undertake a rationale approach, there is a need also of mapping the trade off in terms of potential benefits and costs of the various stages of economic integration.
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The Group observed that the establishment of an Islamic common market is essentially a long term process with multiple dimensions and phases, which includes, among others, determination of comparative advantages of the OIC Member States, selection of priority sectors, facilitation of market access, determination of competition policy free flow of factors of production and establish an Islamic free Trade area.
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Noting Article 24 of the WTO Agreement concerning formation of regional groupings, the Group felt that all the Members States of the OIC should eventually be a party to WTO Agreement so that this might facilitate progress towards setting up a common market or any other form of economic integration being consistent with the WTO requirements. The Group, therefore, felt that support should be extended to those OIC Member States who are currently seeking accession to this Organization.
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