TEHRAN -- Iran, Pakistan and Turkey established ECO in 1985 to promote regional cooperation with the aim of creating the conditions for sustained socioeconomic development and raise the standard of living in member states.

After the break-up of the Soviet Union, the newly independent republics of Central Asia and Azerbaijan sought membership in ECO. The ten-member organization now comprising Afganistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan represents a vast area with rich economic resources and a population of over 300 million people.

The adoption of the Economic Cooperation Strategy identifying ECO's sectoral priorities in transport, communications, trade and energy are expected to be achieved by the year 2005. Iran, Pakistan and Turkey signed a protocol on preferential tariff arrangements involving a 10 percent reduction in 1991, which is being implemented as a first step towards the eventual elimination of trade barriers in the region. The issues of free trade, membership of the World Trade Organizatiion (WTO) and privatization are posing new challenges for ECO, especially when some of its members have already become