The 'Developing Eight' (D-8) member countries have reportedly started ratification of the instruments of Preferential Trade Agreement (PTA), attaching hope of trade expansion between member countries, sources in the Ministry of Foreign Affairs told Business Recorder. Bangladesh, Iran, Indonesia, Pakistan, Turkey, Egypt, Malaysia and Nigeria are members of D-8.
The D-8 was founded by Necmettin Erbakan, a former Turkish Prime Minister. The group was established after an announcement in Istanbul on June 15, 1997. The objectives of D-8 are to improve member countries' position in the world economy; diversify and create new opportunities in trade relations; enhance participation in decision-making at the international level; and provide better standards of living.
The main areas of co-operation include finance, banking, rural development, science and technology, humanitarian development, agriculture, energy, environment, and health. Representatives of each of the eight developing countries (except Bangladesh) signed a PTA on May 14, 2006 at the fifth D-8 Summit in Bali, Indonesia. The agreement was designed to gradually reduce tariffs on specific goods between member states, with a supervisory committee overseeing the process. The purpose of the agreement is to reduce barriers to free trade between member states, as well as promote inter-state co-operation.
"I am writing to express my happiness for the recent good news with regard to the PTA among D-8 members. Turkey has sent the instrument of ratification of the agreement to the D-8 Secretariat as the fourth contracting party, enabling the agreement to enter into force as on August 25, 2011," said Turkish Minister for Economy, Zafar Caglayan, in a letter to the Government of Pakistan.
Total trade volume of D-8 countries was $2.9 billion in 2002, and rose to $17 billion in 2008, said Ergün, adding that the figure stood at $13 billion last year due to the negative impact of the global crisis. In the past seven years, trade volume increased nearly five times. Yet the rise in the rate does not reflect the countries' potential.
"I would like to assert, without any shadow of doubt, that Pakistan played an important role in efforts to create a preferential trade system under the auspices of the D-8, (and) soon the approval process of the agreement (would be completed)," sources quoted Turkish Minister of Economy as saying in his letter. Secretary General Widi A Pratikto recently stated that the agreement would fuel trade among member countries by reducing duties. He maintained that reduction in import duties would speed up intra-group trade.
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