Proceedings of the 13
th
Meeting of the
COMCEC Agriculture Working Group
15
Conclusions and Policy Recommendations
Prof. SAYAN summarized the key findings of the report before presenting the policy
recommendations. These findings are as follow:
High tariff protection in certain key product divisions.
Low average tariffs coupled with low intra-OIC trade share in another key product division
«Meat», indicating that NTMs may be limiting intra-OIC agricultural trade.
Low propensity of trade agreements within the OIC (or, symmetrically, high propensity of
trade agreements with non-OIC countries).
Significance of smallholder farming practices across the OIC, limited access to credit and
technical knowledge, little or no interaction with global markets.
Common understanding among the stakeholders that cooperation and coordination among
OICmember countries in the sphere of agricultural trade would be multilaterally beneficial.
Serious problems concerning data availability and reliability in the realm of agricultural
trade flows and agricultural trade policy measures (including both the tariff rates and the
NTMs).
Prof. SAYAN also summarized the SWOT analysis developed for increasing intra-OIC agricultural
trade. The strengths include shared borders, cultural affinity and the existing legal structure of the
TPS-OIC. The weaknesses include the lack of experience in finding and entering new markets and
the similarity of export products among the OIC member countries.
Based on all these findings, Prof. SAYAN informed the participants on the policy recommendations
that were explained in detail in the final chapter of the report and that provide a basis for the room
document. These recommendations are
Establishing free trade areas (with an understanding that FTAs are difficult to be
established),
Reducing tariff rates for key product divisions and products,
Exploring possibilities for new bilateral trade arrangements in key product divisions and
products,
Accelerating the processes for Halal certification,
Accelerating the implementation of the OIC Trade Preferential System (TPSOIC),
Promoting niche agricultural products,
Supporting commercial cooperation,
Supporting non-commercial cooperation,
Building statistical capacity with regard to agricultural trade flows and policy measures,
Directing research in agricultural trade policy analysis.
Questions and Remarks
Question:
In some countries, Sanitary and Phytosanitary Measures (SPS) measures completely
jeopardize trade. How can SPS regulations be reevaluated for fair outcomes?
Answer:
Prof. SAYAN argued that this is truly a problematic issue that prevents many countries to
have access to the EU and North American markets. The OIC countries exhibit some
complementarity in SPS regulations and related infrastructure in laboratories, testing and human
capital. This potential motivates non-commercial cooperation among the OIC members.
Remark:
Since almost all member countries of the OIC are in the meantime WTO members, tariff
reductions and other policy actions must be in accordance with the GATT’s Article No. 24.