The Seventeenth  Session of  the Standing Committee  for Economic and Commercial Cooperation of the Organization
of the Islamic Conference (COMCEC), held in Istanbul from 18 to 21 October 2001;

Recalling the relevant Resolutions of the Islamic Summit Conferences and the Islamic Conferences of Foreign
Ministers;

Recalling the Strategy  and  Plan of Action to Strengthen Economic and Commercial Cooperation   Among the Member States of the Organization of the Islamic Conference (OIC), approved by the Tenth Session of the COMCEC and endorsed by the Seventh Islamic Summit Conference;

Taking into consideration  the resolutions adopted at the previous  Sessions of the COMCEC and  the recommendations made at the Seventeenth Meeting of its Follow-up Committee;

Reaffirming the commitment to remove all obstacles to closer economic and commercial cooperation among OIC Member States;

Taking into consideration the Resolution adopted at the Tenth Session of the COMCEC calling for holding exchange of views, at the annual COMCEC sessions, on important world economic developments concerning Member States;

Taking  cognizance of  the need to follow up  the outcome of  the exchange of views sessions and coordinate the positions of Member States in relevant international fora in the areas covered at these sessions;

Noting with appreciation the holding of the workshop on  “the Effects on Non-Tariff Barriers on Trade Expansion between the OIC Member States”, hosted by the Government of the Kingdom of Morocco and organized by the Islamic Center for Development of  Trade in collaboration with the other related OIC institutions from 12 to 14 June 2001 in Casablanca, the results of which constituted a major input for the exchange of views conducted during the Session;

Noting the progress reports submitted by the OIC General Secretariat, Statistical, Economic and Social Research and Training Center for Islamic Countries (SESRTCIC),   the Islamic Center for Development of Trade (ICDT),   the Islamic Development Bank (IDB), the Islamic Chamber of Commerce and Industry (ICCI) and the Islamic University of Technology (IUT) on the agenda items;
 

Reports of the General Secretariat

A. Background Report by the OIC General Secretariat

1. Expresses appreciation for the Background Report by the OIC General Secretariat (OIC/COMCEC/17-01/D1) on the
    progress achieved by the Member States and OIC institutions in the field of economic and commercial cooperation;

2. Notes with satisfaction that the Export Financing Scheme and the Islamic Corporation for the Insurance of Investments
    and Export Credit, established by the Islamic Development Bank, in pursuance of a decision of the First Session of
    COMCEC are functioning successfully, and urges Member States who have not yet done so, to join them as early as
    possible;

3. Also notes with satisfaction that IDB is operating the OIC Information Systems Network (OICIS-NET) and invites
    Member States to make the necessary arrangements to get maximum benefit out of it;

4. Appreciates that the ICDT has established the Trade Information Network for Islamic Countries (TINIC) which is
    accessible either through the Internet or through OICIS-NET, and recommends to the Member States to make full use
    of it;

5. Urges the Member States that have not yet done so to sign and/or ratify at an early date the various OIC agreements and
    statutes in the field of economic cooperation; with a view to providing the necessary framework for such cooperation;

6. Expresses its appreciation to the Government of the Islamic Republic of Iran for having hosted in Isfahan, the Meeting of
    the First Islamic Conference of Ministers of Tourism, from 2 to 4 October 2000, as well as the meeting of the Follow-up
    Committee in Tehran, from 27 to 28 August 2001;

7. Welcomes the recommendation of the First Ministerial Meeting of Tourism requesting the Islamic Chamber to set up an
    Islamic Council of Tourism in the Islamic Chamber, and to organize a meeting of private sector on tourism;

8. Expresses its appreciation to the Government of Malaysia for having hosted the Second Islamic Conference of Ministers
    of Tourism in Kuala Lumpur from 10 to 13 October 2001;

9. Appreciates the efforts made by the OIC institutions working in the area of economic and commercial cooperation,
    namely, the Statistical, Economic and Social Research and Training Center for Islamic Countries (SESRTCIC), the
    Islamic Center for Development of Trade (ICDT), the Islamic University of Technology (IUT), the Islamic Development
    Bank (IDB), the Islamic Chamber of Commerce and Industry (ICCI), and Organization of Islamic Shipowners
    Association (OISA), and appeals to Member States to give the needed support and assistance to these institutions so
   that they may continue to perform their functions effectively;

B. World Economic Developments with Special Reference to OIC Member States

10. Expresses thanks and appreciation to SESRTCIC for preparing, in accordance with the decision of the 12th Session of
      the COMCEC, annual economic report on the OIC countries (OIC/COMCEC/17-01/D2) containing recent
      information on economic and related developments concerning the Member States in the context of international
      economic developments;
 
11. Regarding world economic developments, notes that;

  i. Signs of weakening  economic activity in late 2000 and 2001 in major industrial economies, particularly in
     the US significantly weakened prospects for global growth in 2001.

 ii. Although the OIC Member States constitute a substantial part of the developing world, their growth rate is
    still below the average attained by the developing countries.

iii. The overall picture indicates that the OIC Members, unlike many other developing countries, could not, in
    general, benefit enough from the strengthening of world economic activity in 1999-2000.

iv. There is a need to devise ways and means to minimize the adverse effects of globalization on the economies
    of OIC countries as well as to enable them to harness opportunities provided by globalization.

 v. The OIC Member Countries should enhance their efforts to set up joint investment projects to achieve and
     ensure closer economic cooperation among themselves.

12. Entrusts SESRTCIC to continue to monitor world economic and trade developments and their implications for the OIC
      Member States and report to the annual sessions of the COMCEC and other fora;
 

C.   Reform of the International Financial Architecture

13. Expresses thanks and appreciation to SESRTCIC for preparing, in accordance with the resolution of the 27th Session
      of the Islamic Conference of Foreign Ministers, the evaluation Report on supporting the Reform of International
      Financial Architecture with reference to the OIC Member States (OIC/COMCEC/17-01/D3);

14. Concerning international financial architecture, notes that;

  i. The experience during and aftermath of the Asian Crisis, showed that the Asian Financial Crisis was also
     caused by weaknesses prevailing in the current structure of the international financial system.

 ii. Measures need to be taken to strengthen the international financial system, through enhancing transparency
    and disclosure, improving international standards and developing new instruments for early prevention and
    resolution of the financial crises.

iii. A monitoring and consultation mechanism relating to the flows of all kinds of foreign capital transactions may
    be considered by the central banks of the OIC Member States.

iv. The OIC Member States should be enabled to participate effectively in discussions on reforming and
    strengthening the international financial architecture. Central banks and the monetary authorities of the OIC
    Member States may meet regularly to formulate their positions in this regard.

15. Entrusts SESRTCIC to continue to follow-up and study developments on the issue and their implications for the
      Member States, and submit evaluation reports to the annual sessions of the COMCEC, and other concerned OIC fora;

D.  Implementation of the Plan of Action to Strengthen Economic and Commercial Cooperation
      Among the OIC Member States

16. Expresses concern over the slow progress in the implementation of the Plan of Action, and urges the Member States to
      take appropriate action with a view to expediting its implementation;

17. Expresses thanks and appreciation to the Government of the Republic of Turkey for hosting the Experts Group Meeting
      on Accelerating the Implementation of the OIC Plan of Action for Economic and Commercial Cooperation which was
      held in Istanbul, on 6-7 May 2001;

18. Approves the recommendations of the Expert Group Meeting on Accelerating the Implementation of the Plan of Action
      and stresses their importance (OIC/COMCEC/EGM-PA/01/REP);

19. Requests the Member States that had already offered to host sectoral expert group meetings to expedite the convening
      of the said meetings;

20. Renews also its appeal to the Member States who were the proponents of the projects to expedite the formation of the
      project committees as envisaged in the Plan of Action, with a view to implementing the projects proposed during the
      sectoral experts group meetings;

21. Welcomes the offers of the Member States to host the following meetings in connection with activities under the
      auspices of the COMCEC;
 

i. The offer of the Arab Republic of Egypt to host sectoral experts group meetings in the areas of “Transport
   and Communications” and “Food, Agricultural and Rural Development” of the Plan of Action.

ii. The offer of the Islamic Republic of Iran to host an experts group meeting in the area of “Health and Sanitary
    Issues”.

iii. The offer of Sudan to host sectoral experts group meetings on “Energy and Mining” and “Human Resources
    Development”.

iv. The offer of Gabon to organise a sub-regional seminar for the OIC Member States of Central and East
    Africa on “The role of IDB in the promotion of the private sector”.

v. The offer of Indonesia to host in Jakarta an international workshop on “Employment and Manpower
    Exchange”.

vi. The offer of the Republic of Turkey to host the first round of negotiations to be held after the Framework
    Agreement on Trade Preferential System enters into force.

vii. The offer of the Republic of Tunisia to host an expert group meeting on “Promoting the Activities of Small
     and Medium-Sized Enterprises” in the field of production and exports.

22. Invites Member States to host, where appropriate, sectoral or inter-sectoral experts group meetings in areas of
      cooperation listed in the Plan of Action;

23. Calls upon IDB to continue to extend the necessary assistance to Member States and appreciates the assistance already
      offered by IDB;

24. Appreciates the report containing Review of Implementation of the Plan of Action submitted by the OIC General
      Secretariat (OIC/COMCEC/17-01/PLAN) and  requests the OIC General Secretariat to continue to submit to the
     Annual Sessions of the COMCEC a periodical review of the implementation of the Plan of Action;

25. Expresses its thanks and appreciation to the ICDT for organizing under the auspices of the COMCEC, in Istanbul on
     19th October 2001, a sensitization seminar on “Importance of the Framework Agreement on Trade Preferential System
     among Islamic Countries”;
 

 Expansion of Intra-OIC Trade

26. Appreciates the reports submitted by IDB and ICDT on the expansion of intra-OIC trade
      (OIC/COMCEC/17-01/D10) and (OIC/COMCEC/17-01/D21);

27. Appreciates the decision made by IDB to allocate US Dollars 1.03 billion in 1421H (2000/2001) from its own
      resources, to be used as a catalyst to raise an additional US Dollars 970 million through syndication and the Two Step
      Murabaha Financing mechanisms for the purpose of financing of intra trade among OIC/IDB member countries;

28. Appreciates the approvals aggregating US Dollars 1.72 billion made by the IDB in 1421H (2000/2001) under its four
      trade financing schemes and windows;

29. Urges member countries to institute policy measures such as the removal of barriers to trade, promotion of bilateral
      payment arrangements, ratification of OIC Trade Preferential System Arrangement and active promotion of direct trade,
      for instance, through their national procurement policies;

30. Urges the appointed focal points of trade to play a more active role in promoting the trade financing programme of the
      IDB and requests member countries, who have not done so, to expedite the nomination of focal points of trade;

31. Requests member countries to encourage the appointed National Agents for the Export Financing Scheme (EFS) to
      play a more active role in assisting IDB in promoting its trade financing facilities, in general, and the EFS, in particular;

32. Urges financial institutions, including insurance companies, in member countries to support IDB’s efforts, among others,
      by according more favourable terms to transactions that promote direct trade among member countries;

33. Thanks member countries who have actively assisted in identifying viable trade operations for financing by the IDB and
      urges other member countries, who have not done so, to actively support IDB in its efforts to increase intra trade
      financing;

34. Requests IDB to consider provision of technical assistance for capacity building of the focal points in Member States;

35. Requests Member States to provide ICDT with data relating to trade and investment statistics and regulations.

36. Entrusts IDB and ICDT to monitor the expansion of intra-OIC trade and report it to the COMCEC.
 

Matters Relating to WTO Activities

37. Expresses thanks and appreciation to IDB and ICDT for preparing, in accordance with the decision of the 14th Session
      of the COMCEC, monitoring reports on the World Trade Organization (WTO) matters (OIC/COMCEC/17-01/D11)
      and (OIC/COMCEC/ 17-01/D12);

38. Urges the Member States that have not yet done so to take necessary steps for their accession to WTO;

39. Regarding matters relating to the WTO, notes that;

  i. The OIC members should coordinate their efforts with other developing countries to underline the urgent
     need for bringing about desirable reforms, within the international trading system so as to make these
     reforms equally beneficial for the developed and developing countries.
 ii. Future agenda or work program of the WTO should focus on a process of “Review, Repair and Reform”
    aimed at transforming the WTO into a development-oriented Organization.
iii. The WTO should take necessary measures to ensure transparency, full participation of developing countries
    at all stages of negotiations and equitable representation of the developing countries including OIC Member
    States at the WTO Secretariat.
iv. Special and differential treatment in favour of the developing countries as envisaged in the various WTO
    agreements should be clarified and be implemented.
v. The imbalances in several WTO Agreements which have major implications for development policies and /
    or export interests of developing countries, should be corrected.
vi. The OIC Member States should make efforts to establish effective consultative mechanisms amongst their
    governments and private sector representatives to determine common policies to be pursued during the
    trade talks.

40. Appreciates IDB efforts in organizing consultative meetings in order to prepare the Member Countries to exchange their
      views and coordinate positions on major issues in the context of WTO ministerial conferences as well as future
      negotiations, in addition to IDB’s other technical assistance activities aimed primarily at capacity building such as
      preparation of sectoral studies on WTO agreements, conducting seminars, workshops, trade policy courses and specific
      technical assistance to Member Countries;

41. Calls upon IDB to pursue its program of technical assistance to the OIC Member States seeking accession to WTO,
      and to continue extending assistance to the  OIC Member States which are already Members of WTO, in order to
      enable them to participate more effectively in the world trading system;

42. Calls on IDB, ICDT and other related institutions to continue their assistance to the Member States in the context of
      future multilateral trade negotiations;

43. Calls on IDB and ICDT to pool and coordinate their efforts to reinforce the human and institutional capacities of OIC
      Member States, so as to facilitate their full integration into the multilateral trading system on equitable and fair basis;

44. Decides to invite WTO and United Nations Conference on Trade and Development (UNCTAD) representatives to the
     18th sessions of the COMCEC as guests;

45. Entrusts  IDB and ICDT to monitor matters relating to WTO activities and report them to the annual sessions of the
      COMCEC and other concerned fora;
 

Report by ICCI on the Eighth Private Sector Meeting for Promotion of Trade and Joint Venture Investment among the
            OIC Member Countries

46. Appreciates the efforts made by ICCI to organise annual Private Sector Meetings, prior to the annual COMCEC
      sessions and calls for their continuation;

47. Expresses thanks and appreciation to the Republic of Guinea for hosting, and to ICCI for organising the Eighth Private
      Sector Meeting, in collaboration with the Chamber of Commerce and Industry and Agriculture of Guinea and with the
      assistance of IDB, from 9 to 11 October 2001, in Conakry, Republic of Guinea;

48. Takes note with appreciation of the report submitted by ICCI on the Eighth Private Sector Meeting
      (OIC/COMCEC/17-01/D19) which shows a growing interest on the part of the private sector representatives in these
      meetings. This indicates the growing importance attached by the private sector to these meetings, as the number of
      states participating has increased and has increased as well the number of business transactions and joint projects
      concluded. This will have a positive impact on intra-OIC trade. The committee calls upon the Islamic Chamber to
      provide in the future detailed information on such transactions and projects.

49. Takes note with appreciation of the recommendations contained in the Report of the Eighth Private Sector Meeting
      which focused on steps to be taken to strengthen the role of the private sector in economic cooperation among the
      Member States;  and appeals to the Member States to give due consideration to these recommendations, and also calls
      upon ICCI to follow-up and implement the content of Resolution para number 41 of the 15th Session of the COMCEC
      by following-up and monitoring progress in this regard;

50. Calls upon the IDB to undertake efforts in cooperation with ICCI to inform the private sector in the Member Countries,
      the availability of IDB’s lines of financing for trade, investment and its mechanism;

51. Encourages the federations and national chambers of commerce and industry of the Member States to develop a
      framework for closer cooperation with the Islamic Chamber and contribute to its programs aimed at enhancing trade
      and investments among the Islamic countries;

52. Appreciates the offer made by the State of United Arab Emirates and Sharjah Chamber of Commerce and Industry to
      host the 9th Private Sector Meeting from 21 to 23 December 2002 and calls on Member States to encourage their
      private sectors to actively participate in the Meeting;
 

 Islamic Trade Fairs

53. Takes note of the draft Regulation of the Islamic Islamic Trade Fair submitted by ICDT and recommends to the OIC
      Member States to communicate their views on this matter to the ICDT, no later than three months after the notification
      of  the draft Regulation to the Member States; ICDT will convene an Expert Group Meeting for this purpose with a
      view to finalizing these regulations;

54. Takes note of the Follow-up Report submitted by ICDT on the organization of the forthcoming 9th Islamic Trade Fair
      to be held in the State of United Arab Emirates from 21 to 26 December 2002, on the theme of “Free Trade and
      Sustainable Development” and urges the OIC Member States to actively participate in this fair;
 
 

 Exchange of Views on “the Effects of Non-Tariff Barriers on Foreign Trade of the Member Countries”

55. Expresses appreciation to ICDT for the preparation and submission of the report and recommendations of the
      Workshop on “Non-Tariff Barriers on Trade Expansion Between the OIC Member States”
      (OIC/COMCEC/17-01/D18) hosted by the Government of the Kingdom of Morocco and organised by the Islamic
      Center for Development of Trade in collaboration with the other related OIC institutions, with the contributions of high
      government officials, prominent scholars and  experts  from  universities and research centres, as well as from OIC and
      other international institutions, and expresses appreciation for papers submitted by some Member States, ICDT,
      SESRTCIC, IDB, ICCI, IUT and other international Organizations namely UNCTAD and WTO on various aspects of
      the subject;

56. Takes note with appreciation of the recommendations contained in the Report of the Workshop, which are elaborated and amended as under for the observation of the Member Countries as well as other partners in international trading system;
 

General Recommendations

i. To urge Member States to ratify expeditiously the Framework Agreement on Trade Preferential System among the OIC
   Member States, which stipulates the non-recourse to non-tariff measures for economic protection purposes. The Islamic
   Centre for Development of Trade has been entrusted with establishing direct contacts with Member States with a view to
   making them aware of the importance of acceding to this agreement.

ii. To urge Member States to abolish non-tariff barriers (NTBs) that are still impeding intra-OIC trade and not complying
   with the relevant international agreements in this field.

iii. To facilitate the issue of visas to businessmen and agents involved in marketing and transport.

iv. To entrust the ICCI in cooperation with the National Federations and Chambers of Commerce and Industry with
    carrying out researches and studies in order to identify and analyse the existing NTBs and determine their impact
    on intra-OIC trade.

v. To create an unit on NTBs within ICDT.

vi. To request the professional associations and Chambers of Commerce of Member States to communicate on a regular
     basis to ICDT accurate and comprehensive information on difficulties encountered during export operations to the OIC
     markets, including NTBs.

vii. To request Member States to communicate to ICDT all information on trade, economic and financial policies in order to
     enhance the efficiency of The Trade Information Network of Islamic Countries (TINIC) at the following address:
     www.icdt.org.

viii. To strengthen existing cooperation between ICDT, WTO and UNCTAD with a view to developing information
      exchange on NTBs.
 

Standards

ix. To Urge Member States to develop jointly with private economic operators standards and procedures relating to the
    admission of goods in OIC Member States.

x. To seek to adjust as appropriate international standards in the fields of customs procedures, quality standards and
    sanitary and phytosanitary standards stipulated in the WTO Agreements.

xi. To endeavour to increase transparency of trade related technical standards and sanitary and phytosanitary standards
    between Member States.

xii. To reinforce efficiency by simplifying, to the extent possible, technical requirements and standards relating to packing and
     packaging and to the period of validity of foodstuffs and avoid burdensome and exaggerated procedures.

xiii. To seek mutual recognition of national trade related technical standards and sanitary and phytosanitary measures among
      OIC Member States.
 

Customs Procedures and Rules of Origin

xiv. To reinforce efficiency by seeking to simplify the procedures by the customs authorities of the OIC Member States
      relating to import taxes and duties levied on final consumption products, or on re-export goods and on goods in transit.

xv. To accord uniform treatment to imported goods from all Member States with regard the various charges paid for
     services rendered, and take necessary measures to remove all these charges.

xvi. To take necessary steps to gather product control and testing authorities and locate them close to customs check points
      at the frontiers.

xvii. To entrust ICDT, in cooperation with the OIC specialised and subsidiary organs, and affiliated institutions with
       analysing the customs procedures in the OIC Member States with a view to coordinating and simplifying them and
       submitting to the COMCEC periodical reports.

xviii. To urge Member States to adopt the Harmonised Commodity Description and Coding System.

xix. To encourage Member States to apply the rules of Origins in a transparent manner and simplify related procedures.

xx. To promote mutual recognition by concerned national authorities of quality standards and conformity certifications with
     standards and of certificates of origin issued by the OIC Member States.

xxi. To encourage the OIC Member States to computerize their customs procedures and consider steps necessary for the
      creation of a single desk for customs clearance and adoption of random commodity control.

xxii. To promote the use and exchange of expertise as far as the Exchange of Computerized Data (EDIFACT) system
       is concerned.
 

Anti Dumping, Subsidies and Countervailing Duties

xxiii. To urge Member States to seek to avoid dumping measures between the OIC Member States.
 
xxiv. To give due importance to coordination and exchange of expertise between concerned parties in OIC Member States
        in order to master issues relating to dumping practices, countervailing duties and safeguard measures.
 

Trade, Environment and Labour Standards

xxv. To seek to simplify packing, labelling and recycling requirements in order to prevent them from becoming barriers to
       the access of goods of Member States to foreign markets.

xxvi. To facilitate the transfer of environment- friendly technologies in order to enhance the competitiveness of developing
        countries while protecting environment.

xxvii. To reaffirm the position adopted by the 28th Islamic Conference of Foreign Ministers as shared by the majority of
        WTO members, regarding rejection of introducing non-trade issues, such as labour and environment standards, into
        the WTO agenda as this would negatively affect the possibility of creating a free and just trading environment and
        undermine the competitiveness of exports of Member States.
 

Technical Assistance and Training

xxviii. To emphasize that concerned OIC institutions must give utmost importance to technical assistance and training,
         including training for trainers, in order to ensure capacity building at national level in the field of foreign trade,
         especially in respect of the following :

§ Customs procedures and trade facilitation
§ Anti-dumping measures and safeguard measures
§ Non-tariff measures, particularly those relating to technological, health and environmental issues.
§ Electronic commerce.

Organizational Matters

57. Elects State of Kuwait, Islamic Republic of Iran and Federal Republic of Nigeria as Vice-Chairman of the Bureau of the
      COMCEC to represent the Arab, Asian and African Regions, respectively, and the Islamic Republic of Pakistan as
      Rapporteur, to assume their posts as of the 18th Meeting of the Follow-up Committee of the COMCEC; as a result of
      the election, the composition of the Follow-up Committee is as follows;

Republic of Turkey : Chairman (Permanent)
Kingdom of Saudi Arabia : Vice Chairman (Permanent)
State of Palestine : Vice Chairman (Permanent)
State of Qatar : Vice Chairman (Current Chairman of the Summit)
State of Kuwait : Vice Chairman (Representing the Arab Region)
Islamic Republic of Iran : Vice Chairman (Representing the Asian Region)
Federal Republic of Nigeria : Vice Chairman (Representing the African Region)
Islamic Republic of Pakistan : Rapporteur
Syrian Arab Republic : Member of the Previous Bureau
Burkina Faso : Member of the Previous Bureau

58. Decides that the Eighteenth Session of the COMCEC be held from 22 to 25 October 2002, and the Eighteenth
      Meeting of the Follow-up Committee be convened from 10 to 11 May 2002, respectively in Istanbul;

59. Decides that “Private Sector Investment in the Member Countries and the Role of IDB” be the theme for the exchange
      of views at the Eighteenth Session of the COMCEC, and requests IDB to organise a workshop on this topic in
      collaboration with related OIC institutions, namely, SESRTCIC, ICCI, ICDT, IUT and other international
      Organizations, prior to the Eighteenth COMCEC and submit its report to the Session;

60. Welcomes the offer made by the Republic of Turkey to host the workshop on the Private Sector Investment in Member
      Countries and the Role of IDB;

61. Invites Member States to send to the OIC General Secretariat, sufficiently in advance of the Eighteenth Session of the
      COMCEC, country reports reflecting their experiences on the subject matter for the exchange of views;

62. Requests the Follow-up Committee, at its Eighteenth Meeting, to draw up the draft agenda of the Eighteenth Session of
      the COMCEC and recommend alternative themes on which exchange of views would take place during the subsequent
      COMCEC sessions;

63. Requests the OIC General Secretariat to communicate to Member States the dates of the Eighteenth Session of the
      COMCEC and the Eighteenth Meeting of the Follow-up Committee;