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

With Special Emphasis on the TPS-OIC

160

Figure 72: TPS Countries: % Share of Intra bloc Exports

Source: UN Comtrade via WITS

The same analysis can be performed by looking into the imports of each of the Parties of TPS-OIC

System from the rest of the members, as in Figure 73. From this it can be seen that for some

members, the share of imports from the other Parties of TPS-OIC System is quite high. The share of

imports for Oman, Pakistan and Jordan from the other Parties of the TPS-OIC System is well above

25% and Saudi Arabian imports from the TPS-OIC are around 19% of total imports. As we have seen

in section 5.2.2, Pakistan, Oman and Jordan present the highest shares of intra-OIC imports. In

contrast, for Turkey and Malaysia, the share of the TPS-OIC in their imports is lower, accounting for

only 5% of

total imports. In these cases, this is likely to be driven by the respective importance of the

EU and ASEAN in the imports of these two countries.

A first reading of these results might lead to the conclusion that the Parties of TPS-OIC System tend to

be important suppliers of imports but that the TPS-OIC group is less important as a destination

market, which might suggest some scope for an expansion of trade. However, it is important to

highlight two issues. In the case of the GCC members they are already part of an FTA, indicating that

the trade between them is already high. In addition, they tend to share borders, which is likely to

increase the imports from the neighboring countries. For example, Oman imports from Saudi Arabia

and the UAE will be higher as a result of sharing borders with both countries. This implies that their

bilateral trade is likely to be affected by the shared borders and by the existence of an FTA.

In the case of Pakistan, it is likely that a substantial proportion of the imports from the UAE are in

fact imports from India that are channeled through the UAE, as a result of the closure of the border

between both countries and/or exports that are circumventing the Pakistan negative lists in the