JEDDAH 1 January 2009 Organization of the Islamic Conference trade system in force

The Trade Preferential System for the countries of the Organization of the Islamic Conference (TPS-OIC), which has been on the OIC agenda for 25 years, comes into force on Jan 1. It will be expected to increase intra-OIC trade to 20 per cent within the framework of the 10-year OIC program of action adopted in 2005. The OIC aim is to claim a bigger share of the world's gross domestic product.

In recent talks about trade issues in Jordan, Mohammad Ali Mian, president of the Lahore (Pakistan) Chamber of Commerce and Industry, observed that Muslims constitute about 22 percent of the world's population and have abundant human and natural resources, but their share in the world gross domestic product is a scant 4.5 per cent. He said that Islamic world needs to review the OIC trade profile, which accounts for only 7.8 per cent of world exporst and 6.7 per cent of the world imports.

He attributed the scant share to stagnant growth, deteriorating physical infrastructure, institutional weaknesses, high population growth and unemployment in Muslim countries.

The 57-state body is spread over four continents and defines itself as the collective voice of the Muslim world.

The meeting of the OIC's Standing Committee for Economic and Commercial Cooperation (COMCEC) in Istanbul in October will have responsibility for fine-tuning the agreement ahead of the due date.

Potential fields of joint investments include infrastructure, IT, natural resources, alternative sources of energy, the pharmaceutical industry and tourism.

The goal of the 10-year plan is "to promote and reinforce trade liberalisation within the OIC community."

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