Previous Page  59 / 194 Next Page
Information
Show Menu
Previous Page 59 / 194 Next Page
Page Background

Authorized Economic Operator Programs

In the Islamic Countries:

Enhancing Customs-Traders Partnership

49

3.2.3 Convergence Analysis

The main purpose of convergence analysis is to evaluate the viability of regional AEOs/MRAs

in the OIC. APEC (2016) also has the same motivation of providing insights about the feasibility

of regional MRAs between APEC Member States. Furthermore, comparing OIC with APEC,

using the results of a survey -purposefully designed to be very similar with APEC (2016)- can

provide insights into where the AEO programs in the OIC stand when compared to APEC.

In this report, a comparator matrix is employed for its straightforwardness. The comparator

matrix, in essence, is a simple tool to compare different approaches to the AEO concept within

a group of countries.

First, each AEO program is compared based on the survey responses through a determination

of whether each feature is identified by the respondent country as being present in their

program. If the feature is present, one point is assigned in the respected cell of the matrix. If

not, no points are assigned. This procedure is repeated for each AEO program within OIC.

Next, a “convergence percentage” is calculated for each sub-variable. This calculation is

undertaken by dividing the total number of AEO programs with that particular sub-variable by

the total number of OIC member economies with AEO programs. In addition, a “total

convergence percentage by variable” is calculated by taking the mean of each sub-variable

under a variable. Finally, a “total convergence percentage by country” is calculated by

summing identified sub-variables each AEO program has, and comparing the percentage

against the maximum possible score (where a country has all sub-variables).

Finally, once the convergence percentages are calculated, sub-variables that are the most (100

percent convergence) and least (less than 50 percent convergence) commonly incorporated

into member economy AEO programs are identified. That way, it becomes possible to discuss

the key features that member economies can include into their programs for the purpose of a

higher degree of harmonization of AEO programs within OIC.

Furthermore, survey responses and convergence results are used to identify areas in which

best-practice examples would be of most benefit. Better harmonization with best practice

economies is expected to facilitate more MRA negotiations and to further improve worldwide

integration in terms of trade facilitation measures.

3.3 Comparative Findings

This section is based on the findings from responses of 8 out of 12 countries with operational

AEO programs among the OIC member countries: Egypt, Indonesia, Jordan, Morocco, Oman,

Tunisia, Turkey and Uganda. Summary information obtained from surveys is presented for

each country in Annex III.

3.3.1. Convergence Results within OIC Member Countries

After the design and the deployment of the surveys described above, the survey responses are

analyzed by using the convergence method described in Section 3.2. The comparator matrix is

presented in Annex IV.