AN ISLAMIC COMMON MARKET: IMPERATIVE FOR ECONOMIC INTEGRATION OF MUSLIM COUNTRIES

  • Sadia Gulzar PU
Keywords: Islamic common market, Intra-trade, Tariffs, OIC, Economic

Abstract

A common market is a scheme of economic integration where the member states agree to eliminate all trade barriers to allow the free movement of goods, services, capital and labor amongst each another. Nonetheless, they follow a common tariff policy towards their imports from the rest of the world. A common market of Muslim countries is vital for the resolution of the economic issues like low GDP growth, low per-capita income, foreign trade deficit, poverty, illiteracy, lack of skill labor force, unemployment, reliance on external debt and aid and dominance of US dollar etc.  The leading trade partners of Muslim countries are non-Muslim countries especially China, India, USA and European countries etc. It is an alarming situation that Muslim countries are increasing their trade ties with anti-non-Muslim countries like India and Israel. Muslims must strengthen each other financially by the promotion of intra-trade. They may create an Islamic common market (ICM). This research paper examines efforts of OIC member countries in the creation of an Islamic common market. The objectives of this research paper is to discuss the importance and procedure of establishment of an Islamic common market and analyzes the issues of its formation.  This research work will add a new asset in literature. It will contribute to the field of Islamic economics. It will help readers learn about the importance of Islamic common market for a prosperous Muslim Ummah. This research paper follows content analysis method.

References

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 Preferential Trade Agreements- “Agreements among a group of countries to extend special trading advantages, usually tariff rates that are lower than normal trade related rates. North American Free Trade Agreement of US and Cotonou Agreement of EU provide preferential access for exports to former EU member country colonies in Africa, the Pacific and the Caribbean (APC countries) are examples of preferential trade agreements.” (CRS Report for Congress, Agriculture: A Glossary of Terms, Programs, and Laws, 2005 Edition, 16 June 2005, CRS-206; https://web.archive.org/web/20110810044532/http://ncseonline.org/nle/crsreports/05jun/97-905.pdf accessed November 5, 2020).
 A Preferential Trade Area- It is a free trade area where tariffs are reduced. However, tariffs are not eliminated completely. A PTA is the first stage of economic integration. It can be established through a trade pact. Almost any PTA has a key objective of becoming a Free Trade Agreement (FTA) according to the General Agreement Tariffs and Trade.
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The Islamic Common Market, Is It Economically and Politically Justifiable? ,Humanomics, pp.79-80
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Islamic Common Market an Alternative Model to Globalization, p.68
The Islamic Common Market, Is It Economically and Politically Justifiable? ,Humanomics, p.108
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Economic Performance of the OIC Countries and the Prospect of an Islamic Common Market, Working Paper 461, January 2009, p.14
Nabil, Md. Dabour, Implications of Establishment An Islamic Common Market: Gradual Integration and Possible Consequences, Journal of Economic Cooperation, 2004, pp.71-72
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Implications of Establishment an Islamic Common Market: Gradual Integration and Possible Consequences, Journal of Economic Cooperation, 2004, pp.78-82
Published
2021-06-28