The Developing Eight (D-8) will further encourage member countries to ratify a preferential trade agreement (PTA) this year to boost intra-group trade, a top official says.

Secretary-general Widi A. Pratikto said Monday the agreement would push up trade among member countries by reducing duties.  “Reduction in import duties will surely speed up intra-group trade,” he told The Jakarta Post in a phone interview.

Pratikto further said the proposed trade deal would support the target of reaching a total trade volume of US$2.8 trillion by 2020.  According to the latest data available, the total foreign trade of D-8 members reached $1.15 trillion in 2009, while D-8 intra-group trade volume was only $67 billion. He said Iran, Malaysia, Nigeria and Turkey had ratified the PTA, while Indonesia was in the process of ratifying it.

“Indonesia’s ratification of the deal will be significant to increase intra-group trade as it will bring the PTA into force,” he said.

He added that D-8 was also trying to solve other trade barriers, such as the absence of free visa facilities, customs matters and the absence of direct shipping and air links.

The group will also continue to promote economic cooperation between private sectors in member countries by initiating joint projects in several potential sectors, such as the defense industry, agriculture and oil refinery, Widi revealed.

He said Indonesia, for example, could potentially team up with Turkey to make tanks, rifles and ships to be marketed to Malaysia and Nigeria as well as cooperate with Iran and Turkey to set up a fertilizer plant.

Meanwhile, Industry Minister MS Hidayat said that a number of Indonesian firms, including those dealing in food and beverages, automotive and electronics, had great potential to boost exports to D-8 countries.

“The population of D-8 is about 1.1 billion. Our food and beverages, tire, automobile firms are exploring opportunities to increase their exports there,” he said after meeting the secretary-general at his office.  Hidayat said Indonesia’s firms, including carmakers and television producers were ready to enter markets in D-8 countries.

He added that he would lead a business delegation to explore investment opportunities during a D-8 industry ministers meeting in October.

Established in 1997 to foster economic cooperation between developing Muslim nations, D-8 consists of Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey. D-8 focuses on five priority sectors of trade; agriculture and food security; industry and small and medium enterprises; transportation, civil aviation and shipping; and energy, mineral and mining.

Souce: The Jakarta Post