Preferential Trade Agreements and Trade Liberalization Efforts in the OIC Member States

With Special Emphasis on the TPS-OIC

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With regard to non-tariff measures parties of the agreement are to notify them to the SAARC

Secretariat with a view of review by the Committee of Experts that may recommend their

removal in the least trade restrictive manner. Trade facilitation is mentioned in the agreement

with a rather weak commitment that parties agree to consider measures in this area. In 2010,

SAARC Agreement on Trade in Services (SATIS) was signed entering into force in end-2012,

but specific commitments are still negotiated. Hence, SATIS is not effectively implemented yet.

The share of total intra-SAARC trade remains low, at around 6% on the side of exports and

recently falling to below 2% of imports. This, however, owes to very large heterogeneity in

economic size of members with India accounting for 85-90% of total SAARC trade. For smaller

SAARC members their share of trade within SAARC is significant, although the SAFTA generally

does not appear to have any visible impact on relative intensity of trade relations within the

bloc. Also, significant trade flows between India and Pakistan and some other SAARC partners

take place via United Arab Emirates (especially Dubai) so that the figures may underestimate

actual shares of intra-SAARC trade.

Pakistan has a more diversified export structure to SAARC than other OIC members with

cotton (HS52), salt, sulphur, earth, stone, plaster, lime (HS25) and several agricultural

products among main exports in 2013. Limited data availability does not allow for an analysis

of trade concentration over time. Afghanistan’s exports to SAARC partners mainly consists of

agricultural products (especially edible fruits, nuts (HS08) and lac, gum, raisins, vegetable saps

(HS09)) and carpets and other textile coverings (HS57). Bangladesh’ 2005 main exports to

SAARC members included textile fibres (HS53), inorganic chemicals, precious metal com-

pound (HS28), other made textile articles (HS63) as well as some agricultural products. Fish

(HS03) by far dominate Maldives’ exports to the FTA partners with a share of around 80.

See