Indian Ocean Rim grouping to boost trade

The Indian Ocean Rim Association for Regional Cooperation (IOR-ARC) Tuesday decided to support intra-regional growth of business through infrastructure building and trade facilitation to boost intra-trade.

‘Though intra-regional trade accounts for 24 percent of the global trade, we have the capacity to increase it by encouraging our forums to reach out to business and commercial expertise in the region,’ the association said in a communique after its 11th council of ministers meeting here.

The day-long meeting, held under the chairmanship of India for the first time, discussed the possibility of initiating a comprehensive study on the feasibility of preferential trading arrangements for the region.

‘We are of the firm view that the academic, scientific and business communities of our membership will find their participation in the wide variety of trade and tourism expositions and fairs held in the region of benefit and use,’ the association said in its ‘Bangalore Declaration’.

Emphasising on the need for cross-fertilisation of ideas between the academic and business forums and the working group on trade and investment to strengthen cooperation in the region, the meeting agreed upon capacity building in these sectors through programmes and workshops.

‘Capacity building in ICT (information and communication technologies), analytical studies on investment promotion, study of monsoon, marine biology and management of our coastal zones are areas of relevance. Energy efficiency and renewable energy technologies need close attention,’ said the declaration.

Appreciating the diversity and richness of the region’s tourism potential and tourism promotion as an attractive vehicle for socio-economic growth and development in the region, the communique said intra-regional tourism offered huge potential to target high growth in the sector.

‘The second phase of tourism feasibility study will be undertaken at the initiative of Oman. We believe that the member countries can target the tourism sector to realise its full potential,’ the communique observed.

The meeting also favoured increasing cultural exchanges to promote people-to-people contacts, contribute to greater appreciation of our diverse capacities, social and cultural values and enhance the visibility and value of the association.

On the suggestion of Australia as the new vice chair of the association, the meeting agreed to consider a new name for the association and directed its officials to initiate consultations on changing the name by the next meeting in 2012.

The regional bloc in which India is a founding member, was set up in Mauritius in 1997 with Australia, Bangladesh, Indonesia, Iran, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, Singapore, South Africa, Sri Lanka, Tanzania, Thailand, the UAE (United Arab Emirates) and Yemen as the member-countries.

Seychelles, which left the organisation in 2003, re-joined Tuesday to become the 19th member of IOR-ARC.

The association has also five dialogue partners - Egypt, Japan, China, Britain and France - and two observers - Indian Ocean Tourism Organisation (IOTO) and Indian Ocean Research Group (IORG).