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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.