The Implications of Trade Liberalization on Islamic Economic Ethics in Relation to the WTO Agreement Crisis on Organization of Islamic Countries

Abstract

In an era marked by geopolitical instability and shifting global trade dynamics, this study explores the implications of international trade liberalization on Islamic economic ethics within member states of the Organization of Islamic Cooperation (OIC). Anchored in the theoretical framework of maqāṣid al-sharīʿah and using a normative juridical method, the research critically examines how liberalized trade structures—particularly under the World Trade Organization (WTO)—challenge the ethical foundations of Islamic economic systems, including justice (ʿadl), balance (mīzān), and public welfare (maṣlaḥah).

This paper argues that the disruption of global supply chains offers both risks and opportunities for OIC countries to restructure their trade policies in accordance with Islamic values. Case studies from Malaysia, the UAE, and Indonesia demonstrate that ethical realignment is possible when guided by shariah-compliant frameworks. The study recommends the development of sustainable intra-OIC trade models, halal certification systems, and value-based supply chain governance as viable alternatives to the dominant liberal paradigm. By embedding Islamic ethics into global trade practices, OIC countries can contribute to a more just, resilient, and spiritually grounded economic order.