Economic Cooperation to Add New Life to SCO

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Last updated at: (Beijing Time) Wednesday, May 29, 2002

Economic Cooperation to Add New Life to SCO

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Economic Cooperation to Add New Light to SCO

The trade ministers of China, Russia, Kazakhstan, Kyrgyzstan, Tajikistan and Uzbekistan decided Tuesday in Shanghai to launch the regular meeting mechanism of trade ministers of the Shanghai Cooperation Organization (SCO) and the talks on trade and investment facilitation among SCO members.

The ministers made the decision during the one-day first ministerial meeting on trade and economic cooperation among SCO members, which closed the same day. They signed two documents at the conclusion of the meeting to cement their consensus on cooperation.

Regular meeting, talks and follow-up action

The meeting was a concrete step to implement the consensus reached by the state leaders of the SCO members and their prime ministers. It was also an important part of the preparations for the upcoming summit meeting of the heads of state of the SCO in Russia.

The ministers agreed at the current meeting to launch both a regular meeting mechanism and talks on trade and investment facilitation. They also agreed to take follow-up action to implement the consensus reached at the meeting.

The follow-up actions include the setting up of a joint experts ' group to make a comprehensive study of regional cooperation, and to make proposals for talks on trade and investment facilitation. The group will also be responsible for making a long-term plan for economic cooperation among the SCO members.

Joint statement highlights regional economic cooperation

The joint statement signed by the ministers stipulates that each will do its best to realize the goal and objectives of the regional cooperation outlined in the prime ministers' memo signed last year.

"The documents we signed and the discussion are of great importance for the start of regional economic cooperation among the SCO members," said Shi Guangsheng, China's minister of Foreign Trade and Economic Cooperation, at a press conference following the meeting.

The SCO's predecessor, the "Shanghai Five", had mainly political aims, such as cracking down on the "three evil forces" -- separatism, terrorism and extremism. But the SCO is different from its predecessor in that it has set regional economic cooperation as its main task.

The joint declaration of the SCO, signed by the presidents of the six countries here last year, says that they will make use of the great potential and opportunities for regional economic cooperation and trade, promote their cooperation to a higher level and launch the process of trade and investment facilitation in a timely fashion.

Trade and investment facilitation set as priority

The SCO covers territory totaling 30.17 million square kilometers, the population totals 1.5 billion, and the total gross domestic product surpasses 1,500 billion U.S. dollars.

Chinese observers said that the economies of the six countries are highly complementary. While China has advantages in textiles, household electrical appliances and telecommunications, the others have advantages in metallurgy, chemical industry, mechanics, energy, raw materials, space and aviation industry, and animal husbandry.

"Active cooperation between the SCO members will promote the economic development of all members, strengthen their cooperation in other areas and make the SCO an organization full of vitality," said a Chinese analyst.

But they need to go a long way to reach this goal, as they are all transitional economies from centrally-planned to market- oriented. They are also different from each other in their economic strength and trade regime.

The prime ministers of the six countries decided last September that they will choose trade and investment facilitation as the priority for cooperation. The facilitation means to increase the transparency of laws and regulations, simplify customs procedures, and improve efficiency and protection of investment.

Experts say that by choosing trade and investment facilitation for cooperation at the beginning stage, the SCO can effectively resolve the differences in trade and investment, and clear the obstacles in the flow of commodities, capital, technology, services and personnel.

"On the principle of seeking common ground while reserving differences, development in a gradual manner with a long-term view and common development, and with the joint efforts of governments of all member countries, regional economic cooperation will add new life to SCO cooperation," Shi said.

Shanghai Cooperation Organization

Shanghai Cooperation Organization Aims to Create New World Order

China and its five northern neighbors announced in Shanghai on June 15, 2001 to set up a regional cooperation organization, the Shanghai Cooperation Organization, to ensure regional security in central Asia as well as create a new political and economic order in the world.

Chinese President Jiang Zemin, Russian President Vladimir Putin, Kazakh President Nursultan Nazarbayev, Kyrgyz President Askar Akayev, Tajik President Emomali Rakhmonov and Uzbek President Islam Karimov signed the declaration of the Shanghai Cooperation Organization (SCO).

The declaration said that the organization will try all out to safeguard the regional security and cooperate with each other in fighting against terrorism, separatism and extremism.

Meanwhile, the organization pledged to allow other countries, which must meet its requirements, to join in.

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