Saudi Arabia Joins 3rd TNC Ministerial Meeting on OIC Trade

Saudi Arabia participated in the third Ministerial Meeting of the Trade Negotiations Committee (TNC) of the Trade Preferential System among the Organization of Islamic Cooperation (OIC) member states, held in Istanbul, Türkiye, on June 12, 2024. The Saudi delegation was led by Farid bin Saeed Al-Asali, Deputy Governor of the General Authority for Foreign Trade (GAFT) for Agreements and International Organizations, deputizing for Minister of Commerce and GAFT Chairman of the Board of Directors Dr. Majid bin Abdullah Al-Qasabi.

Context and Background

The Trade Preferential System among OIC member states is a cornerstone initiative of the Standing Committee for Economic and Commercial Cooperation of the OIC (COMCEC). It aims to expand intra-OIC trade by reducing tariffs and streamlining trade procedures, with a target to increase trade among member states by 25% by 2025, as outlined in the OIC-2025 Program of Action. The third TNC Ministerial Meeting brought together representatives from OIC countries to review progress and negotiate further trade liberalization measures.

Saudi Arabia’s active role in the OIC reflects its commitment to multilateral cooperation and economic integration within the Islamic world. The Kingdom has consistently supported COMCEC projects and the Islamic Center for Development of Trade (ICDT), which serve as joint secretariats for the TNC. This engagement aligns with Saudi Arabia’s broader strategy to diversify its economy and strengthen global trade partnerships under Vision 2030.

Key Details

During the meeting, the Saudi delegation reaffirmed the Kingdom’s dedication to dialogue and cooperation with OIC member states to enhance trade cooperation, in line with declarations and resolutions from Islamic Summit Conferences, the Council of Foreign Ministers, and COMCEC ministerial sessions. The Kingdom commended the efforts of the COMCEC Coordination Office and the ICDT in facilitating negotiations and promoting trade among member states.

The Trade Preferential System seeks to explore opportunities and stimulate intra-OIC trade by establishing trade partnerships and increasing trade volume. Saudi Arabia’s participation underscores its belief in the system’s importance as a means to boost economic ties and sustainable development across the OIC region. The General Authority for Foreign Trade (GAFT) is tasked with maximizing the Kingdom’s gains from international trade, enhancing its global presence, and ensuring effective participation in international organizations.

Implications and Impact

The outcomes of the TNC Ministerial Meeting are expected to further integrate OIC economies, creating new opportunities for Saudi exporters and importers. By reducing trade barriers, the system can facilitate access to new markets, diversify trade partners, and increase the competitiveness of Saudi products. This is particularly relevant as Saudi Arabia accelerates its economic transformation, seeking to boost non-oil exports and attract foreign investment.

Regionally, stronger intra-OIC trade can enhance economic resilience and foster closer ties among member states. For Saudi Arabia, this aligns with its Vision 2030 goal of becoming a global investment powerhouse and a hub connecting three continents. The Kingdom’s leadership in such forums reinforces its role as a bridge between Islamic nations and the broader international community.

Vision 2030 Alignment

Saudi Arabia’s participation in the third TNC Ministerial Meeting reflects the Kingdom’s unwavering commitment to Vision 2030, which aims to diversify the economy, increase non-oil exports, and deepen international trade relations. By actively engaging in the OIC Trade Preferential System, Saudi Arabia is not only advancing its own economic interests but also contributing to the prosperity of the wider Islamic world, in line with its longstanding role as a leader in regional cooperation and sustainable development.

20 Questions

Q1. What was the third TNC Ministerial Meeting of the OIC?

A1. It was a meeting of the Trade Negotiations Committee of the Trade Preferential System among OIC member states, held in Istanbul on June 12, 2024, to discuss enhancing trade cooperation and integration among member countries.

Q2. Who led the Saudi delegation to the meeting?

A2. The Saudi delegation was headed by Farid bin Saeed Al-Asali, Deputy Governor of the General Authority for Foreign Trade for Agreements and International Organizations, deputizing for Minister of Commerce Dr. Majid bin Abdullah Al-Qasabi.

Q3. What is the Trade Preferential System among OIC member states?

A3. It is a framework aimed at reducing trade barriers and boosting intra-OIC trade, serving as a cornerstone of the COMCEC projects to increase trade volume and establish partnerships among member states.

Q4. What target did the OIC-2025 Program of Action set?

A4. The program set a goal to increase intra-OIC trade by 25% by 2025, to be achieved through enhanced trade cooperation and preferential agreements among member states.

Q5. What did Saudi Arabia emphasize at the meeting?

A5. The Kingdom stressed its commitment to dialogue and cooperation with OIC member states to boost trade cooperation, in line with declarations and resolutions of Islamic Summit Conferences and COMCEC ministerial sessions.

Q6. Which organizations did Saudi Arabia commend for their work?

A6. Saudi Arabia commended the COMCEC Coordination Office and the Islamic Center for Development of Trade (ICDT), which serve as joint secretaries for the Trade Negotiations Committee.

Q7. Why is Saudi Arabia participating in this initiative?

A7. Saudi Arabia believes in the importance of improving the Trade Preferential System to explore opportunities and stimulate intra-OIC trade, thereby increasing trade volume and establishing trade partnerships among OIC countries.

Q8. What is the role of the General Authority for Foreign Trade (GAFT)?

A8. GAFT seeks to increase the Kingdom’s gains from international trade, boost its international presence, and ensure its participation in international organizations to achieve common goals and sustainable development.

Q9. How does this meeting relate to Vision 2030?

A9. The meeting aligns with Vision 2030’s objectives to diversify the economy, increase non-oil exports, and deepen international trade relations, contributing to Saudi Arabia’s global economic integration and sustainable development.

Q10. What are the expected outcomes of the TNC Ministerial Meeting?

A10. The meeting is expected to further integrate OIC economies by reducing trade barriers, facilitating market access, diversifying trade partners, and increasing the competitiveness of Saudi products in regional and global markets.

Q11. How does intra-OIC trade benefit Saudi Arabia?

A11. Increased intra-OIC trade can provide Saudi exporters with new opportunities, enhance economic resilience, and support the Kingdom’s efforts to boost non-oil exports and attract foreign investment.

Q12. What is COMCEC?

A12. COMCEC stands for the Standing Committee for Economic and Commercial Cooperation of the OIC. It is a key platform for economic cooperation among OIC member states, overseeing projects like the Trade Preferential System.

Q13. When and where did the third TNC Ministerial Meeting take place?

A13. The meeting was held in Istanbul, Türkiye, on June 12, 2024, bringing together representatives from OIC member states to advance trade negotiations.

Q14. What is the significance of the Trade Preferential System for OIC economies?

A14. It is a cornerstone of COMCEC projects, designed to stimulate intra-OIC trade, increase trade volume, and establish trade partnerships, thereby enhancing economic integration among member states.

Q15. How does Saudi Arabia’s participation reflect its international trade strategy?

A15. Saudi Arabia’s participation reflects its strategy to actively engage in international organizations, boost its global presence, and maximize gains from international trade, consistent with Vision 2030’s economic diversification goals.

Q16. What did the Kingdom say about the declarations of Islamic Summit Conferences?

A16. The Kingdom stressed its commitment to dialogue and cooperation as stipulated in the declarations and resolutions of Islamic Summit Conferences, the Council of Foreign Ministers, and COMCEC ministerial sessions.

Q17. Who are the joint secretaries of the TNC?

A17. The COMCEC Coordination Office and the Islamic Center for Development of Trade (ICDT) serve as the joint secretaries of the Trade Negotiations Committee.

Q18. What is the ultimate goal of the Trade Preferential System?

A18. The ultimate goal is to increase trade volume among OIC member states, establish trade partnerships, and achieve the 25% intra-OIC trade increase target set in the OIC-2025 Program of Action.

Q19. How does this meeting contribute to sustainable development?

A19. By promoting trade cooperation and economic integration, the meeting supports sustainable development through increased economic opportunities, job creation, and enhanced prosperity among OIC member states.

Q20. What future steps are expected after this meeting?

A20. Future steps include continued negotiations to reduce trade barriers, implementation of agreed preferential measures, and further collaboration among OIC member states to achieve the targets of the OIC-2025 Program of Action.

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