(  IDB Headquarters Jeddah, March 1, 2004 )

Annex-E

The establishment of trade preferential system among OIC member states adopted by the fourth session of the COMCEC; especially, the adoption of the consensus as a basic principle for the decision making relating to the TPS-OIC process and the conclusion of the balance and global agreement with due regard to the bilateral and multilateral obligations of individual member states.

Up to this date twelve countries have ratified the framework agreement thus entering it into force following its ratification by the required number of member states. Consequently an expert group meeting was held to prepare the launching of the First Round of Trade negotiations, it was organized by the Islamic Center for Development of Trade (ICDT) in Casablanca in the period between 24-26 June 2003.

The COMCEC has urged the Trade Negotiating Committee (TNC) to work with a pace that would enable to respect the negotiations calendar and take into account the capacity, the concerns and the interests of participating states, especially those of the LDCs.

The COMCEC also welcomed the offer made by the Republic of Turkey to host the first round of negotiations in April 2004 in Antalya with a probable assistance from IDB. The COMCEC requested the (TNC) to devote its first session to finalize the methodology of negotiations and other technical aspects and reaffirmed the importance of the completion of the first round of negotiations within one year in compliance with the general principles agreed upon in the framework agreement, starting from April 2004. Moreover, the COMCEC requested the TNC to supervise the process of the submission of trade negotiations proposals taking into account the need for guaranteeing the confidentiality of offers while recognizing the transparency of the process and its multilateral aspects. The chair of the TNC shall submit periodically to the COMCEC reports on the progress achieved.

The COMCEC coordination office (CCO) and ICDT shall serve as the secretariat of the TNC. The secretariat shall carry out its functions as stipulated in the Rules and Procedures of the TNC. The COMCEC in return appreciated the substantial contribution offered by the Government of the Republic of Turkey, ICDT and IDB for the preparations of the negotiations.

The COMCEC has decided the following:

a.         The approval of the rules of procedures of the TNC;

b.         The invitation of the TNC to take up its duties and execute the implementation program and the work schedule within the prescribed time;

c.         The invitation of the General Secretariat of the OIC, the subsidiary organs, the specialized and affiliated institutions operating in the economic and commercial fields, each in keeping with its specialty and in compliance with their rules and procedures, to contribute to effectively applying these decisions and initiate activities that would lead to the achievement of a preferential trade area between the OIC member states;

d.         The evaluation by the COMCEC of negotiations carried out in the TNC and assessment of the progress achieved in the implementation of the agreement;

e.         To place the progress review of the TPS/OIC as a permanent item on the agenda of the next session of the COMCEC;

f.         The COMCEC shall continue its supervision mission of negotiations during the first stages of the implementation of the TPS/OIC in order to make up for any difficulty that would hamper its execution.

Financial provisions

• The Representatives of the participating States in the Committee shall cover their expenses.

• The organizational expenses of the Committee sessions will be covered by the host government.

• The Committee may seek financial support from the Participating states and some OIC institutions to cover some of the expenses accruing from trade negotiations.

• The Committee shall submit its reports and recommendations to the Standing Committee for Economic and Commercial Cooperation of the Organization of the Islamic Conference (COMCEC) for adoption.

• These rules of procedures shall be applied upon their adoption by the COMCEC.

• It is to be noted that IDB has showed interest in the participation of the co-financing of the upcoming first round of trade negotiations.

Latest Developments on this matter

• It was decided that the first round of the negotiations will be held in Antalya, Republic of Turkey during the period from 6-9 April 2004.

• Full board for three representatives from participating member countries in the negotiations will be paid by the Republic of Turkey plus one representative from OIC institutions and any other invited international institution.

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