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Reviewing Agricultural Trade Policies

To Promote Intra-OIC Agricultural Trade

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(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.”

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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

& Diouri

7

, 2017).

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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-20

th

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

6 https://gro-intelligence.com/insights/plan-maroc-vert-spotlight-on-moroccos-agriculture-policy 7 https://halshs.archives-ouvertes.fr/halshs-01613992/document

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http://www.femise.org/en/studies-and-research/evaluation-of-the-agricultural-strategy-of-morocco-green-morocco- plan-with-a-dynamic-general-equilibrium-model/