D-8 Comprehensive Economic Partnership
Md. Joynal Abdin*
Business Consultant & Digital Marketer
Co-Founder & CEO of Bangladesh Trade Center
Multilateral trade regime under the umbrella of the World Trade Organization (WTO) lost its momentum due to non-compliance of developed countries and non-cooperation among the member states. International politics and disputes between USA & China, LDC versus Developed members and finally its voluntary nature of implement ability could be the reason behind slower motion and time-consuming features of WTO mechanism.
Regional trade blocks are also becoming weaker inactive due to disputes among two or more countries. For example, SAARC is in paralyzed condition due to rivalry of two largest neighbors India & Pakistan. US President Donald Trump neglected the spirit of NAFTA; Brexit hit EU spirit, similarly TPP died with the withdrawal of USA from the platform. OIC failed from the day one due to too many politics and leading countries abuse of this platform as per their own benefit. Current crisis of Muslim world with France may reorganize market mechanism between the Muslim countries with the west. OIC is not in a position to play its role in this crisis period due to leadership weakness. Therefore, Muslim world should go for alternative arrangement other than OIC. In such condition the D-8 Organization for Economic Cooperation could be strengthened and enlarge its member based and make it effective as an effective alternative of OIC and establish an effective tie between the members.
Just to recall, D-8, also known as Developing-8, is an organization for development cooperation among eight Muslim countries namely Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey. It was established on June 15, 1997. 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 standard of living. Major areas of cooperation under this platform are agriculture and food security, Industrial cooperation, Trade, Transport, Energy and mineral and Tourism etc.
If functional cooperation could be ensured in the field of agriculture and food security then member countries could share their competitive advantages and ensure food security of all D-8 citizens, Industrial cooperation could lead us into trans-border investment and technology transfer for mutual benefits. Trade cooperation should ensure free movement of goods and people among the member states. But trade performance among D-8 countries during last two decades has not been significant in comparison to their world trade volume. For example, export volume among D-8 in 2019 was USD 49,076 billion against their world export in the same time USD 761,447 billion. Similarly, import volume among D-8 Countries in 2019 was USD 50,183 billion against D-8 import from the world USD 843,985 billion. From both the figures it is clear that, D-8 trade between the member countries is very much insignificant against their international trade.
Why this inert D-8 trade is insignificant against their global trade volume? It could be due to their political misunderstanding among the member countries like Bangladesh & Pakistan, Egypt & Turkey etc. or economic reason behind it. In case of political miss understanding professionals like us have nothing to do other than recommending political leaders to minimize the gapes based on mutual understanding as soon as possible. Let’s see what economic reason there behind underperforming trade among the D-8 nations could be.
| Top – 10 Export Items of D-8 Countries | |||||||
| Bangladesh | Egypt | Indonesia | Iran | Malaysia | Nigeria | Pakistan | Turkey |
| HS 61 | HS 27 | HS 27 | HS 27 | HS 85 | HS 27 | HS 63 | HS 87 |
| HS 62 | HS 71 | HS 15 | HS 39 | HS 27 | HS 89 | HS 52 | HS 84 |
| HS 64 | HS 39 | HS 85 | HS 29 | HS 84 | HS 83 | HS 61 | HS 72 |
| HS 63 | HS 85 | HS 87 | HS 26 | HS 15 | HS 18 | HS 62 | HS 61 |
| HS 53 | HS 08 | HS 72 | HS 08 | HS 90 | HS 12 | HS 10 | HS 85 |
| HS 03 | HS 31 | HS 71 | HS 72 | HS 39 | HS 31 | HS 42 | HS 71 |
| HS 42 | HS 07 | HS 40 | HS 74 | HS 40 | HS 08 | HS 03 | HS 27 |
| HS 65 | HS 62 | HS 84 | HS 25 | HS 72 | HS 24 | HS 90 | HS 73 |
| HS 41 | HS 72 | HS 62 | HS 07 | HS 38 | HS 41 | HS 25 | HS 62 |
| HS 39 | HS 61 | HS 64 | HS 31 | HS 29 | HS 88 | HS 08 | HS 39 |
Table -1: Top 10 Export Items of D-8 Countries (HS Code Wise)
From the table -1; it is shown that Bangladesh & Pakistan has most similarity / same items in their top 10 export items. Other countries have two or three items common but mostly different items are there in their export basket. Overall diversity is more prominent than the similarity in the export basket of D-8 countries. Let’s see the top -10 import items of the D-8 countries to identify scope of inter D-8 product exchange instead of importing from any third country.
| Top – 10 Import Items of D-8 Countries | |||||||
| Bangladesh | Egypt | Indonesia | Iran | Malaysia | Nigeria | Pakistan | Turkey |
| HS 52 | HS 27 | HS 84 | HS 84 | HS 85 | HS 84 | HS 27 | HS 27 |
| HS 27 | HS 85 | HS 27 | HS 85 | HS 27 | HS 27 | HS 84 | HS 84 |
| HS 84 | HS 84 | HS 85 | HS 10 | HS 84 | HS 87 | HS 85 | HS 85 |
| HS 85 | HS 10 | HS 72 | HS 90 | HS 39 | HS 85 | HS 72 | HS 72 |
| HS 72 | HS 87 | HS 39 | HS 29 | HS 72 | HS 90 | HS 29 | HS 71 |
| HS 39 | HS 39 | HS 87 | HS 30 | HS 87 | HS 39 | HS 39 | HS 39 |
| HS 87 | HS 72 | HS 29 | HS 12 | HS 90 | HS 70 | HS 15 | HS 87 |
| HS 55 | HS 73 | HS 73 | HS 87 | HS 71 | HS 30 | HS 87 | HS 29 |
| HS 54 | HS 30 | HS 10 | HS 39 | HS 29 | HS 10 | HS 12 | HS 30 |
| HS 60 | HS 02 | HS 90 | HS 23 | HS 38 | HS 73 | HS 52 | HS 90 |
Table -2: Top 10 Import Items of D-8 Countries (HS Code Wise)
From the above information of Table – 2, Import items of Bangladesh & Pakistan are almost similar. But there are huge varieties among the other member states. Therefore, inter D-8 country trade potentials lies there. Not only these if we would like to analyze top – 10 import and export items of D-8 countries (Table – 1 & 2) then it is more prominent that, few D-8 countries import most which are readily exported by the fellow D-8 members and vice a versa. Therefore; it could be said that, D-8 countries have more trade supplementary product basket than that of the complementary items. It means if D-8 leaders can eliminate tariff and non-tariff barriers then inter D-8 trade will be increased and thus Muslim countries could be partner in each other’s development.
Not only in trade but D-8 countries could be development partner for each other’s through facilitating investment, technology transfer and transfer of military and non-military managerial know how through an appropriate mechanism under a comprehensive platform. If, NATO, EU, ASEAN & AGUA etc. international defense, trade and investment platforms can perform; why D-8 cannot be strengthened further into a comprehensive partnership platform by including defense, trade and investment aspects to be real partners of each other’s. Number of member countries could be increased to make it practically functional and performing one. Thus our political leaders can transform D-8 prospects into reality to ensure meaningful mutual partnership in near future.
D-8 Comprehensive Economic Partnership: D-8 Comprehensive Economic Partnership
*Author’s Short Profile:
Mr. Md. Joynal Abdin is a Business Consultant & Digital Marketer based in Dhaka, Bangladesh. He is also Co-Founder & CEO of Bangladesh Trade Center. Previously he served at Dhaka Chamber of Commerce & Industry (DCCI) as Executive Secretary; DCCI Business Institute (DBI) as Executive Director; SME Foundation as Deputy Manager; and the Federation of Bangladesh Chambers of Commerce & Industry (FBCCI) as Assistant Secretary.
The list of services Mr. Abdin is offering includes but not limited to Business Research and Documentations like Feasibility Study, Project Proposal Preparation, Writing Business Manual, Standard Operating Procedures etc.; Export Market Selection and Product Positioning at Home and Abroad; Buyers-Sellers Matchmaking; Website Development; Search Engine Optimization (SEO); and Social Media Marketing etc.
