ECONOMIC INTEGRATION ECO’S PERSPECTIVE

Panel Discussion,

2 July, Astana Economic Forum- 2010

Economic Cooperation Organization

Stages of Economic Integration

• Preferential Trade Agreement (PTA)

• Free Trade Area (FTA)

• Customs Union

• Common Market

• Economic Union

• Monetary Union

Economic Integration has several benefits:

• Trade enhancement and greater market access• New investments and new employment opportunities• Goods become available at cheaper rates• Economies of scale • Improved competitiveness of member states• Better preparedness for coping with possible crises

Integration to facilitate Freer movement of:- goods. capital. services. and people.

Izmir Treaty,ECO Vision 2015

and other basic document of ECO provide the main

guidelines for our cooperation.

Izmir Treaty,ECO Vision 2015

and other basic document of ECO provide the main

guidelines for our cooperation.

Promote sustainable economic and social development.

Raise living standards of regional population.

Bring peoples of ECO region together through the mobilization of potential for regional cooperation in diverse fields.

• Sovereign equality of the Member States based on mutual advantage;

• Synergy between national economic development plans and ECO's objectives;

• Joint collaboration in accessing external markets beyond ECO region;

• Effective utilization of ECO institutions and legal cooperative arrangements with other regional and international organizations including multilateral financial institutions;

• Joint effort in developing a harmonized approach for participation in regional and global arrangements;

• Implementation of the economic cooperation strategy and exchanges in the fields of education, science, technology and culture.

Integration practices in ECO• ECO perceives regional economic

cooperation as an efficient way of contributing to welfare.

• ECO also gives importance to soft components of integration, i.e. culture, education, science etc.

• Integration practices have been implemented by ECO through the period over the past 18 years.

• Integration in ECO is essentially supported by legal frames, which have been endorsed by Member States.

Institutional integration within ECO

Integration through ECO operations

Transport

1. The Program of Action for ECO Decade of Transport2. The Transit Transport Framework Agreement

(TTFA)3. Regional projects in the field of railway transport4. Regional projects in the field of road transport

I. ECO Activities in the field of Transport

• Operational since 2002.• A regional study commenced to regularize the

train

I. ECO Activities in the field of Transport2. Regional projects in the field of railway

ECO Container and passenger Trains on Istanbul-Almaty Route

ECO Container and passenger Trains on Bandar Abbas-Almaty Route

•The feasibility study for this route is under way.

•The demonstration run is being planned Mid Oct. 2010.

THE DEMONSTRATION RUN OF ISLAMABAD – ISTANBUL TRAIN

http://www.ecosecretariat.org/ftproot/Directorates/dia.htm

Human Resources Development

ENERGY

TRADE & INVESTMENT COOPERATION

POLICY / DECISION MAKING BODIES

• MINISTERIAL MEETINGS ON COMMERCE/FOREIGN TRADE

• MINISTERIAL MEETING ON FINANCE/ECONOMY

• MEETING OF THE HEADS OF CENTRAL BANKS

Trade & Investment CooperationINITIATIVES

• ECO TRADE AGREEMENT (ECOTA)

• AGREEMENT ON PROMOTION AND PROTECTION OF INVESTMENT

• AGREEMENT ON SIMPLIFICATION OF VISA PROCEDURES FOR THE BUSINESSMEN AND TRANSIT DRIVERS OF ECO MEMBER STATES

• ESTABLISHMENT AND OPERATIONS OF ECO SMUGGLING AND CUSTOMS OFFENCES DATA BANK

• AGREEMENT ON MUTUAL ADMINISTRATIVE ASSISTANCE IN CUSTOMS MATTERS

ECO UPCOMING INITIATIVES FOR TRADE INTEGRATION

• AGREEMENT ON AVOIDANCE OF DOUBLE TAXATION

• AGREEMENT ON PREVENTION OF CORRUPTION AND

MONEY LAUNDERING

• AGREEMENT ON JOINT TRADE PROMOTIONAL ACTIVITIES

• AGREEMENT ON MUTUAL RECOGNITION OF STANDARDS

• AGREEMENT ON TRADE FACILITATION

INSTITUTIONAL MECHANISMS

• ECO TRADE AND DEVELOPMENT BANK

• ECO REINSURANCE COMPANY

• ECO CHAMBER OF COMMERCE & INDUSTRY

• ECO BUSINESS FORUM

• ECO TRADE PROMOTION ORGANIZATIONS FORUM (ECO-TPOs)

NEW INSTITUTIONAL ARRANGEMENTS/PROPOSED FORUMS

• ECO WOMEN ENTREPRENEURS FORUM (ECO-IPAs) FORUM

• ECO YOUNG ENTREPRENEURS FORUM (ECO-YEF)

• TECHNICAL ASSISTANCE AND TRADE CAPACITY BUILDING INSTITUTE

• REGIONAL TRADE ASSOCIATIONS ON SPECIFIC SECTORS

PROJECTS/ACTIVITIES

• ECO-PROJECT ON EXPANDING INTRAREGIONAL TRADE

• ECO-UNIDO PROJECT ON TRADE CAPACITY BUILDING

• ECO TRADE & INVESTMENT NETWORK WEB PORTAL

• ECO-PIDE PROJECT –STUDY ON THE TRADING PATTERNS IN THE ECO REGION

ACTIVITIES:• ECO TRADE FAIR• ECO TRADE & INVESTMENT CONFERENCE

NTBs in the ECO Region• Inefficient and insufficient telecommunications,

transportation, banking& insurance systems.• High and discriminatory transit fees.• Unreliable and insecure transit routes.• Difficult visa procedures.• Time consuming, non transparent customs

practices.• Quantitative restrictions on imports.• Licensing for certain imports.• Discriminatory customs procedures.• Shortage of customs facilities.• Currency convertibility/exchange rate

uncertainties.• Restrictions on financial/banking services.

ECO – Way Forward• A Regional Multi- Dimensional Trade and

Investment Strategy to be approved by the upcoming Ministerial on Commerce and Foreign Trade• An ECO Joint Investment Fund has been

agreed to be created to support investment promotion plans• Soon after implementation of ECOTA, the

regional countries have agreed to negotiate FTA

ECO – Way Forward

• Plans to comprehensively address issues of NTBs

• Joint Trade Promotional Activities at regional level to be geared up

• Special measures for smaller economies to enhance their capacities in trade and investment promotion

ECO Specialized Agencies /Regional Institutions Role of ECO Specialized Agencies/Regional

Institutions• To promote cooperation among the ECO member states

in specific field of cooperation, the Treaty of Izmir-the Charter of the Organization envisages establishment of ECO Specialized Agencies and Regional Institutions.

• Specialized Agency: to promote close cooperation among the member states in such fields as social, cultural, technical and scientific.

• Regional Institution: to promote economic growth of the Eco region through provision of financial and commercial facilities and investment of funds within the region.

ECO Specialized Agencies

1. ECO Cultural Institute

2. ECO Educational Institute

3. ECO Science Foundation

Regional Institutions

• ECO College of Insurance

• ECO Consultancy and Engineering Company (ECO-CEC)

• ECO Chamber of Commerce and Industry

• ECO Trade and Development Bank

• ECO Reinsurance Company

Overview of ECO’s External Relations

UNODCUNDPUNIDO

UNCTADUNFPAUNDCPUNISDRUNECEUNICEFUNEP

UNESCAP

ECO

Efforts to Promote External Relations

• Comprehensive Plan of Action to enhance ECO’s External Relations

• Contact Groups of Ambassadors of ECO Countries in Selected Capitals of the World

• ECO Troika of past, present and future Chairmen of the CoM

T h a n k y o u