Reviewing Agricultural Trade Policies
To Promote Intra-OIC Agricultural Trade
43
(SME) inmost of the cases, also have problems in reaching trade financing and insurance. Special
financial schemes need to be installed for easy access of SMEs. Agricultural SMEs have also
problems in reaching international markets. A report by the Islamic Centre for Development of
Trade adds to those the lack of diversification in export baskets, failing to fulfill international
market requirements such as norms and standards, the need for information on markets and
business opportunities, the shortage of technical experts in international trade as well as the
scarcity of networking opportunities and marketing activities in other OIC countries (ICDT,
2018).
COMCEC Strategy aims facilitating trade by putting in place less complex trade procedures, by
developing the administrative customs capacity, by improving the logistics services for trade
and by easy access to direct payments. With regard to trade financing, the Strategy targets to
improve the awareness about the financing mechanisms which are already available, while
determining new instruments along with the progress of the insurance systems against payment
risks.
Finally, COMCEC Strategy attracts the attention to the need for extending awareness of trade
projects, as well as improved communication among stakeholders of the member states. Online
networks for putting business people in contact are determined as a good communication
platform. Capacity development of Trade Promotion Organizations in the member states is also
considered important while improving the export strategy and international marketing ability
of SMEs.
An example of best practice exists in Morocco within the “Plan Vert.” 6 The Plan Vert deals with
the above mentioned challenges and support the agricultural sector towards its primary
objectives to “strengthen the sector’s competitiveness, while promoting inclusive economic
growth.” With its two pillars, the Plan targets both industrial producers and SMEs separately, as
their needs differ. Studies evaluating the achievements of the Plan conclude overall as positive,
attracting the attention to the measures required for increasing the benefit (Oulhaj, 2013; Saidi
& Diouri7, 2017).8 Those measures largely join the above mentioned issues determined as
barriers to success of the agricultural trade policies and will be mentioned further in the Case
Study section on Morocco in Chapter 4.
3.3. Agricultural Trade Policy Measures of OIC Member Countries
Since the mid-20th century, GATT Rounds made the tariffs fall worldwide. Tariffs applied to
agricultural products diminished as well, although less than in industrial goods, since tariffs in
agriculture are typically larger than tariffs in non-agricultural sectors. GATT, strengthened with
the Marrakesh Agreement establishing the WTO, started the Doha Round in 2001 to reform
international trading system through lower trade barriers and revised trade rules with a
particular focus on agriculture and on developing countries’ economic development efforts. This
agenda has been dictated by the increasing importance and a large variety of NTMs at global
scale, despite all the efforts mentioned above. NTMs represent a considerable challenge for
exporters to access foreign markets, particularly crucial for agricultural exporters from
developing countries. The most important NTMs in agriculture are product standards. This may
be in the form of documents providing access to a market, or getting a certification consumers
seek, e.g. maximum residue limits for pesticide allowed. Those measures are regulated by the
8