Iran implements preferential trade deal with D-8
By Nigar Abbasova
Iran and several members of the D-8 Organization for Economic Cooperation have signed a preferential trade agreement. Trade Promotion Organization of Iran has announced that the preferential trade agreement envisages economic cooperation between the Islamic Republic and Indonesia, Malaysia, Nigeria, Pakistan, and Turkey, IRNA news agency reported.
The eight emerging economies of the Muslim world had earlier decided to implement the agreement from July, 1. The decision was made at the meeting of senior trade officials from the member states of the organization.
Under the agreement, the participating countries will give preferential access to 230 products.
The PTA agreement is expected to propel trade from existing $120 billion to $ 500 billion for the benefit of the people of the member countries, business recorder reported. The implementation of PTA is expected to expand trade and economic cooperation with the view of improving the positions of developing Muslim countries in the global economy.
Tariff rates will gradually be reduced from over 10 percent to 8 percent, from over 25 percent to 20 percent, from 15-25 percent to 15 percent and from 10-15 percent to 10 percent for various products according to the agreement, Daily Sabah reported.
Member states have also decided to share their experience in various fields to help other member states to boost different fields of economy.
The D-8 Organization for Economic Cooperation, also known as Developing-8, is an organization for development cooperation between Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.
Trade volume among D-8 countries reached nearly $122 billion in 2014 as compared to $15 billion shown in 1997, the year when the organization was founded. The increase totaled 8 percent. The D-8 countries' export volume with the whole world in the reported period increased by nearly 3 percent and reached $1.7 trillion.
The organization was created with the aim of enhancing cooperation in areas such as trade, investment, rural development, human resource development, standards of living, science and technology, energy, agriculture and health as well as to improve the economic status of the member states.
The D-8 secretariat is based in Istanbul, Turkey, while the post of the secretary-general is held on a rotational country basis.
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Nigar Abbasova is AzerNews’ staff journalist, follow her on Twitter: @nigyar_abbasova
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