Preferential Trade Agreements and Trade Liberalization Efforts in the OIC Member States
With Special Emphasis on the TPS-OIC
154
Table 30: TPS-OIC MFN Simple Average Tariff 1995-2012
Reporter 1995 2000 2005 2006 2007 2008 2009 2010 2011 2012
Bahrain 5.24 5.17 4.73 4.73 4.73 4.77 4.77
Bangladesh 21.64 15.3
Jordan 22.09 13.57
Malaysia 7.31 7.18 7.17 6.88 6.95
Oman 5.04 5 5.23 5.22 5.22 4.49
Pakistan 50.84 14.24 14.25 14.02 13.42 13.9
Qatar 5.03
Saudi Arabia 11.95 4.76
Turkey 9.44 9.58 9.65 10.03 9.71 9.49 9.91 9.62
UAE 4.9
Source: Trains via WITS
5.1. EXAMINING THE LIBERALISATION COMMITMENTS
Compared to other PTA agreements including some of those discussed in the preceding section, as
well as earlier in the report the mandatory commitments that are embodied in the TPS-OIC are
somewhat low. The reductions in tariffs are covered by Articles 3 and 4 of the agreement. Article 3,
which is referred to as the normal track contains actual obligations with regard to tariff reductions
on the participating members states. Article 4, which is referred to as the fast track is voluntary.
According to Art. 3 of the PRETAS, 7% of the tariff lines are required to be covered by the agreement
implying that around 93% of the products will not be affected by the agreement. The number of lines
to be covered by the agreement applicable to Least Developed Members is only 1%. As for the para-
tariff and non-tariff barriers, upon entry into force of the PRETAS they will be eliminated (in the case
of the LDCs in 3 years).
Any member whose MFN tariffs are less than 10% in more than 90% of the products are required to
liberalise only 1% of the tariff lines. This is the case for all the GCC members whose MFN tariffs (with
the exception of alcoholic beverages) are all below 5%. The low level of coverage contrasts notably
with the agreements negotiated or under negotiation where the level of coverage is substantially
more important. It is worth remembering, as discussed earlier in the report, it is generally accepted
that in order to meet the GATT’s ART XXIV provisions, no less than 90% of trade should be
liberalised. For example, in the EU-EPAs negotiations, although the EU liberalised 100% of their
products, ACP countries had to commit to liberalisation in no less than 80%, hence achieving the
90% "substantially all" clause on average. With other agreements the level of coverage is even higher
as we have seen previously in this report.