Karzai seeks closer trade ties with Muslim nations

By Daren Butler

ISTANBUL (Reuters) - Afghan President Hamid Karzai, re-elected a week ago after a flawed vote, appealed on Monday for closer trade ties with fellow Muslim countries to help Afghanistan break its cycle of conflict.

Karzai met representatives of eight governments, including Turkish President Abdullah Gul and Iranian President Mahmoud Ahmadinejad, on the sidelines of an economic summit held by the Organisation of the Islamic Conference in Istanbul.

"Afghanistan's interest is primarily in having close brotherly relations with its neighbours, freedom of trade and transit, and an effective environment of cooperation," he told a breakfast meeting before the formal opening of the summit.

A Turkish Foreign Ministry official said there would be a follow-up conference on Afghanistan in the near future, which Turkey had offered to host.

Most trade with landlocked Afghanistan passes through the conflict-ridden border with Pakistan and through Iran.

The widespread fraud reported during the election and his chief rival's refusal to contest a run-off have damaged Karzai's credibility at the start of his second term.

Karzai was seen as a guarantor of Western aid when he was first elected in 2004 but his relations with the United States and other Western allies have become strained by allegations of corruption and misgovernance.

His popularity has dwindled as many ordinary Afghans believe they have not benefited from billions of dollars in aid.