BALI, May 13: The Developing Eight (D-8) member countries here on Saturday signed two accords to strengthen trade relations and economic cooperation during the 5th summit of the grouping.

Commerce Minister Humayun Akhtar signed the deal on Preferential Trade Agreement and accord on Mutual Administrative Assistance in customs matters along with his counterparts from the member countries in the presence of D-8 leaders, including Prime Minister Shaukat Aziz.

The PTA agreement provides for reduction of tariffs and elimination of non-tariffs barriers to help promote and expand trade and contribute towards harmonious development of economic ties among the D-8 countries.

The accord is based on the principle of overall reciprocity and mutuality of advantage to benefit equitably while recognizing needs of the least developed member countries.

Under the agreement, the member countries shall not increase the applied tariff rates on imports of the products covered under the preferential trade accord without approval of the supervisory committee.

As per the agreement, tariffs above 25 per cent shall be reduced to 25 per cent; above 15pc and up to 25pc shall be reduced to 10pc; and above 10pc and up to 15pc shall be reduced to 10pc.

The D-8 member countries are Indonesia, Bangladesh, Nigeria, Malaysia, Pakistan, Egypt, Iran and Turkey. All the members are also part of the Organisation of Islamic Conference (OIC).

The D-8 was established in June 1997 with the objective of promoting trade relations among the member countries. It held its first summit the same year and last met in Tehran in 2004.

During the period 1999-2004, D-8 intra-trade grew by $33 billion for a 217 per cent increase in five years.

Earlier, while opening the summit, Indonesian President Susilo Bambang Yudhoyono said the organisation had enormous potential and vast resources and there were great opportunities waiting for them.

While referring to the increase in intra-trade among the D-8 members, he said the grouping could have done lot more but there were problems that stood in the way.

“Some of these problems are not economic but are political and security-related and some of them do not even originate within our borders but outside, yet they can have a severely adverse impact on our economies,” he added.—APP