THE MINISTER OF EXTERNAL AFFAIRS (SHRI I.K. GUJRAL): Mr. Speaker, Sir, I have great pleasure in informing the hon. Members of this august House of the successful launching of the Indian Ocean Rim Association for Regional Cooperation (IOR-ARC). This was pursuant to the First Ministerial Meeting of the Rim countries held in Mauritius from 5-7 March, 1997. Apart from myself, and the Indian delegation present at the IOR-ARC's birth, were the Ministers and delegations of 13 other countries - Australia, Indonesia, Kenya, Madagascar, Malaysia, Mauritius, Mozambique, Oman, Singapore, South Africa, Sri Lanka, Tanzania and Yemen.
The IOR-ARC has been two years in the making. The Government of India, in close consultation with other friendly countries, has been actively involved in supporting this initiative and bringing it from conception to fruition. The Government of Mauritius convened an Inter-Governmental Meeting of seven Indian Ocean Rim countries - Australia, India, Kenya, Mauritius, Oman, Singapore and South Africa - in March 1995. Subsequently, the membership of the Initiative was doubled. With this, it was assessed that a critical mass had been achieved and the IOR-ARC could be formally launched.
The IOR-ARC Ministerial Meeting adopted the Charter of the IOR-ARC setting out the objectives, fundamental principles, scope of activities as well as institutional and financial arrangements. The Indian delegation had coordinated the preparation of this landmark document which establishes the basis of this organisation. It was, therefore, a matter of particular satisfaction to us that this foundational document was adopted by acclamation by all delegations.
I would like now to draw the attention of the House to some important aspects of the Indian Ocean Rim Charter:
i) It represents the rediscovery of the traditional bonds and relations amongst Indian Ocean Rim countries and peoples and puts them in a contemporary, forward-looking context.
ii) It focuses the IOR-ARC on facilitation and promotion of economic cooperation leaving out security related and political polemics. Bilateral and other issues likely to generate controversy and be an impediment to regional cooperation efforts are to be excluded from its purview.
iii) The approach to be followed is consensus based, evolutionary and non-intrusive and the five principles of Panchsheel are affirmed.
iv) The principle of non-discriminatory treatment to each other by member States is emphasised, including in terms of the grant of Most Favoured Nation (MFN) treatment by WTO members of IOC-ARC.
v) The scope of activities and Work Programme focus on "those areas of economic cooperation which provide maximum opportunities to develop shared interests and reap mutual benefits". These include, in particular, trade facilitation, promotion and liberalisation, investment promotion, scientific and technological exchanges, tourism, development of infrastructure and human resources and movement of natural persons and service providers on a non-discriminatory basis.
vi) It does not, at present, constitute a Preferential Trade Arrangement but leaves it open for IOR-ARC members States to pursue trading arrangements amongst themselves.
vii) The Charter provides for a Council of Ministers and Committee of Senior Officials to be assisted by the Indian Ocean Rim Business Forum and the Indian Ocean Rim Academic Group to steer and coordinate the activities of IOR-ARC. This tripartite consultative structure is a unique feature of IOR-ARC. A Secretariat of IOR-ARC is to coordinate, service and monitor the implementation of policy decisions and Work Programmes.
The ministerial Meeting endorsed the Work Programme developed in the IOR-ARC. Among the 10 projects, the four offered by India and already being implemented are: Indian Ocean Rim Business Centre and IOR-NET, IOR Trade Fair in India, establishment of an IOR Chair in Indian Ocean Studies and Associate Fellows Programme and undertaking of investment facilitation and promotion as well as work on trade-creating joint ventures. Our projects evoked great deal of interest and participation from other member States and we have also offered technical and project assistance where required to member countries under our ITEC programme. We are participating in the projects on Maritime Transport, Human Resource Development and Cooperation in Standards and Accreditation, offered by other IOR-ARC members.
The Ministerial Meeting also agreed to establish a nucleus Secretariat of this organisation in Mauritius, in recognition of the valuable and pioneering role Mauritius has performed. All IOR-ARC members are to contribute equally in operational costs of this "pilot mechanism" and also depute officials to man it.
Applications for membership of IOR-ARC have been received from seven countries -- Bangladesh, Iran, Pakistan, Seychelles, Thailand, Egypt and France. Additionally, some other countries and sub-regional groupings have expressed their interest in observership. We are gratified that so many countries have expressed an interest in the IOR-ARC which is a recognition of the tremendous importance of this Association. We have established a Working Group which will look at all membership issues in their totality and make recommendations to the Committee of Senior Officials and through them to the Council of Ministers.
Overall, it is a matter of great satisfaction that this initiative which had been nurtured by us in cooperation with other participating countries has had such a smooth and positive start. Every member country expressed its commitment and determination to contribute to IOR-ARC's success. A spirit of understanding and consensus prevailed -- a happy augury for the future.
The Indian Ocean Rim is linked to India's destiny by name, by the Indian diaspora and by the opportunities these Rim countries hold for an expanding and globalising the Indian economy. IOR-ARC includes countries that are important regionally and globally and are among the more dynamic and emerging economies. With all IOR-ARC countries, we have growing trade and investment links and they too recognise India's role and potential contribution to regional economic cooperation. Already the IOR-ARC accounts for over US $ 700 billion in global trade and US $ 100 billion in intra-trade, which will multiply greatly with the evolution of a common regional identity.
Indian participation in IOR-ARC takes further our wider neighbourhood strategy, South Asia, South East Asia, Asia-Pacific, the Gulf, Eastern and Southern Africa are now a part and parcel of our close neighbourhood approach and nodal points of intensified interaction. It is yet another dimension of South-South Cooperation.
The successful establishment and institutionalisation of the IOR-ARC in the Mauritius meeting provided a sense of great achievement to all of us, who participated in this historical event. To us, in India, it should be a matter of particular relevance and satisfaction. The construction of a community of Afro-Asian nations among the littoral States of the Indian Ocean Rim, including Australia was a cherished Nehruvian ideal. It is particularly rewarding and apt that we were able to realise this vision in a significant manner this year, when India is celebrating the 50th anniversary of its Independence.
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