Pakistani Minister for Commerce, Humayun Akhtar Khan said on Wednesday said that Pakistan-Malaysia have concluded negotiations on a bilateral Free Trade Agreement (FTA) and it will be signed within next two month for improving trade and investment between them. “The initiative includes trade in goods, trade in services , investment and Economic cooperation”, he told a press conference here at a local hotel today.

The Commerce Minister said that the landmark agreement is the first between two OIC and D-8 member countries and will serve as a precedent for many future such agreement between Muslim countries. Minister for Commerce Humayun Akhtar Khan said negotiations on a bilateral Malaysia-Pakistan close economic partnership agreement, which is a comprehensive Free Trade Agreement,  successfully concluded at Kuala Lumpur on May 24, 2007.

He added that the initiatives include trade in goods; trade in services; investment and economic cooperation.

He said that Malaysia is an important Member Country of ASEAN and this Agreement will provide Pakistan a firm foothold in the vibrant and growing economies of East Asia. The Minister said Malaysia and Indonesia are the two main sources of palm oil imports adding said that the signing of FTA with Malaysia would encourage Indonesia to sign an FTA or PTA with Pakistan.

He expressed the hope that it will help Pakistan to be a full Dialogue Partner of ASEAN and pave the way for a regional Agreement with ten countries of ASEAN.

Humayun Alhtar Khan said that Pakistan has undertaken to eliminate/reduce tariff mostly on raw materials and Malaysia shall provide market access on our textiles; bed linen, other home textiles; kinno, and prepared food etc. The manufacturing sectors of Pakistan will now be able to source raw materials and inter-mediatory goods from China as well as from Malaysia at preferential/zero duty.

In the realm of Trade in Services,he said Malaysia has provided market access on various sectors including Islamic Banking and Takaful. These concessions have not been extended by Malaysia to any other country.

The Minister said that the constitutional and procedural requirements are likely to be completed by both countries a within to months and thereafter the Agreement will be signed.

The date and time of the event will be settled through diplomatic channels. After signing of the Agreement the package will be made public.

Malaysia will hold the first Malaysia-Egypt Palm Oil Trade Fair and Seminar in Cairo this month, local media reported Wednesday.

The two-day event, which will kick off next Monday, is expected to bring together oils and fats marketers, traders, economists as well as government officials from the two countries.

Themed “Exploring Opportunities, Enhancing Palm Oil Trade,” this fair is organized by the Malaysian Palm Oil Council (MPOC) and Malaysian Palm Oil Board (MPOB), the national news agency Bernama reported.

Malaysian Minister of Plantation Enterprises and Commodities Peter Chin Fah Kui will launch the fair in the Egyptian capital city. Some 50 businessmen from the Malaysian palm oil industry will attend the event.

According to MPOB figures, Malaysia exported 13,809 tons of palm oil to Egypt during the first quarter of this year, compared with 88,181 tons in the same period last year.

China, the Netherlands and Pakistan remained the top three buyers of the commodity for Malaysia in the first quarter this year.

A roadmap for trade between members of D8 organisation is being prepared to double the intra-group trade to over $60-70 billion within 10 years.

Secretary General D8 organisation Dr Dipo Alam said this while addressing the Karachi Chamber of Commerce and Industry here.The present global trade of the eight countries is over $750 billion and the combined population is over 900 million, he said.

Dr Alam, who is from Indonesia and on a short visit to Karachi, said this decade-old organisation is primarily on a government-to-government level, but the new thinking is to involve the private sector and make D8 more private sector-oriented.

He said that the eight Muslim countries, Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey, have signed a Preferential Trade Agreement among themselves, although they have not yet ratified it.

He said that D8 countries could soon take advantage of trade with ASEAN countries through Malaysia and Indonesia. He said visa, customs and shipping agreements have already been reached within the D8 membership.

Dr Alam, accompanied by senior Indonesian diplomat Hikmat Moeljawan, also stated that a process of sectoral dialogue is being initiated such as jewellery development, fruits and fisheries, large-scale manufacturing investment, etc through 15 working groups.

Earlier, Majyd Aziz in his presentation called for setting up a designated group of the largest chambers in each country and that this Chambers’ Group could become the focal point in each country and set up a D8 Cell in each chamber.

He said that common exhibitions, position papers, and proposals could be done through this Group. Moreover, a continuous flow of information and exchanges of delegations could be undertaken. He offered the services of Karachi Chamber of Commerce and industry in this regard. He also presented the progress of the My Karachi exhibition, which would be held by KCCI from June 01-03.

Dr Alam appreciated the proposal of KCCI and advised that the Chamber should present a formal proposal that would be deliberated upon in the D8 headquarters and a decision to this effect might be taken soon.

Hikmat Moeljawan assured KCCI that the Indonesian Consulate General in Karachi would continue to provide maximum cooperation and support to KCCI and that is why Indonesian firms have been the first to reserve stalls and participate in the My Karachi exhibition.

Iran participated in the International Trade Center (ITC) Conference after 40 years, Trade Promotion Organization of Iran (TPOI) reported here on Saturday.

Attended by representatives of 130 developed and developing countries, the three-day conference was held in the Swiss capital Geneva.

Representing Iran in the meet, Mohammadreza Izadian said the participating parties discussed ITC’s plans, developing states’ exports, and their national, regional, and international policies.

The strategies on Africa, oil exporting countries, and exports of Asia-Pacific, Latin America, East Europe, Commonwealth of Independent States (CIS), and the Caribbean were among the topics, he added.

Izadian said that the directors general of the World Trade Organization (WTO), United Nations Conference on Trade and Development (UNCTAD), ITC, and United Nations Industrial Development Organization (UNIDO) delivered speeches.

Iran is planning to host the first international exhibition of ecotourism of Developing 8 Countries (D8) as part of an initiative to boost international ties.

Making the announcement, the Iranian secretary of National Ecotourism Committee said the decision was made during his recent meeting with the Secretary General of the D-8 Organization.

Arash Kousha noted the boosting of educational, scientific and cultural ties and the exchange of experiments were among the main issues discussed in the meeting.

National Ecotourism Committee has scheduled the strengthening of international cooperation on the top of its agenda, Kousha added.

He also described the country’s relations with D8 members as “positive”.

The Developing 8 (D-8 or Developing Eight) consists of Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey. The group was established after an announcement in Istanbul, Turkey on June 15, 1997.

As stated by the D8 Facts and Figures Publication, “The objectives of D-8 are to improve developing countries’ positions in the world economy, diversify and create new opportunities in trade relations, enhance participation in decision-making at the international level, and provide better standards of living.”

The main areas of cooperation include finance, banking, rural development, science and technology, humanitarian development, agriculture, energy, environment, and health.

Pakistan has stated that the D-8 countries will take necessary steps for implementation of the Preferential Trade Agreement (PTA).

Addressing the two-day eighth meeting of High Level Trade officials (HLTO) of D-8 countries, which concluded here Friday at the Foreign Affairs Ministry, UN and EC Additional Foreign Secretary Tariq Osman Hyder said D-8 members would complete arrangements for PTA’s implementation signed at the Bali Summit in 2006.

The delegates and representatives of eight Muslim member countries including Bangladesh, Egypt, Indonesia, Iran, Turkey, Malaysia, Nigeria and Pakistan participated in the 8th HLTO.

D-8 Secretary General Dr Dipo Alam said D-8 members had great economic potential and could make tremendous progress by collaborating. He said they should enhance efforts to fulfil this potential.

According to the Foreign Office (FO), the 8th HLTO meeting chaired by the Ministry of Commerce Joint Secretary Shahid Bashir witnessed progress by building consensus on the previous meeting held in Islamabad in December 2006. The key issues were related to increasing economic interaction. Ministry of Foreign Affairs Director General (Economic Coordination) and Pakistan’s D-8 Commissioner Muhammad Waheedul Hasan presided over the concluding session.

The FO stated that Pakistan had played an active role in D-8 members’ economic collaboration to promote economic growth. The second, fifth and seventh meetings of the HLTO were also held in Islamabad.

Dr Alam also called on Foreign Minister Khurshid Kasuri. He said he would strengthen the D-8 by increasing interaction among member states. Kasuri assured Dr Alam of Pakistan’s role in fostering cooperation among D-8 states. Dr Alam also met the Islamabad Chamber of Commerce and Industry president and discussed ways to increase commercial ties among the D-8 countries’ trade and commerce bodies.

Indonesia remains on course to become the world’s leading palm oil producer with output for the year expected to reach a record 17.4m tonnes, according to local news reports.

Derom Bangun, head of the Indonesian Palm Oil Association, predicted that increased production and acreage was allowing suppliers in the country to offset the effects of drought. He was quoted in an interview with the The Star newspaper in Malaysia, a major competitor to Indonesia.

If the estimates prove to be correct, news of increased supply will be welcomed within both the bakery and snack industries, which have faced recent uncertainty over prices for palm oil coming from the region.

Palm oil is found in a diverse range of products including bread, crisps and margarine. The product is currently enjoying strong appeal as an ingredient because it is free of artery-clogging trans fats, formed when fats are hydrogenated to make them more solid and extend their shelf life.

According to figures from the US Department of Agriculture (USDA), global palm oil consumption in 2006 increased by 6.6 per cent to 35.3m tonnes. This trend is expected to continue in 2007 with an estimated 5.5 per cent consumption rise.

With demand for the oil rising, the news of Indonesia’s increased yield will be even more pertinent for processors, as rival producer Malaysia has seen difficulties in keeping up with demand.

Last month, Malaysian palm oil futures hit an eight year high as rampant demand by food and biofuels processors further depleted its stocks. On 12 April the futures hit 2,205 Malaysian ringgit (€473) tonne, as an industry body warned that the country’s stocks were at a 19 month low.

While the food industry may welcome the increased production, not all are happy with the growing reliance of global consumers on palm oil.

Environmental groups are concerned that the growing interest in the oils is resulting in the destruction of wildlife. According to pressure group Friends of the Earth (FoE), over 89 per cent of all palm oil is produced in Malaysia and Indonesia, to the detriment of both countries’ natural resources.