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Reviewing Agricultural Trade Policies

To Promote Intra-OIC Agricultural Trade

170

referenced international databases that collect and publish statistics on tariff rates and NTMs at

product division and product levels do not cover the statistics of most recent years for many OIC

countries.

5.2. A SWOT Analysis of Intra-OIC Agricultural Trade

Before proceeding to the emerging policy recommendations, a summary table of the SWOT

analysis that has been carried out for intra-OIC trade in agricultural products is presented in this

subsection. Trade promotion for a particular group of countries and products is a multi-faceted

phenomenon at both extensive and intensive margins of trade. The design and implementation

of effective agricultural trade policies through tariff measures, NTMs, and trade agreements are

processes that should be complemented with policies that target the structural micro and macro

problems for individual countries and for the group as a whole.

Table 5. 1 SWOT Analysis for Intra-OIC Agricultural Trade

General

Strengths

Members globally ranking among the top 20 producers of many agricultural

products

Non-satiated domestic markets and increasing domestic demand for food

Suitable climate for agricultural production in most OIC members

Weaknesses

Low value added in exports (unprocessed/raw or semi-processed)

Lack of insurance mechanisms against production and marketing risks

Opportunities

Not fully tapped export markets for many agricultural products

Threats

Low overall level of development of member economies

Political conflicts

Climate change

Similarity of the geography and factor endowments across countries

Poor renewable water resource endowments of many members

Production

(General)

Strengths

Young population

Vast (but unevenly distributed) stock of arable lands

Wide range of product variety

Weaknesses

Fragmented lands and scale problems

Generally low level of agricultural productivity

Poorly educated labor force

Low capacity to control the effects of weather on agricultural production

Threats

Climate change

Increasing oil prices (for members that are net importers)