Preferential Trade Agreements and Trade Liberalization Efforts in the OIC Member States
With Special Emphasis on the TPS-OIC
169
251710 Pebbles/gravel/broken/crushed stone, of 14,054 1.01% 28,434 0.31% 5
721420 Bars & rods of iron/non-alloy steel 14,026 1.01% 27,517 0.30% 5
721410 Bars & rods of iron/non-alloy steel ( 18,866 1.36% 26,629 0.29% 5
352,706 25.45% 345,222 3.77%
Source: TradeSift calculations using HS 6-digit data from Comtrade via WITS; TRAINS database for the
tariffs. Note: The list of products here has been defined by taking the average over the period 2010-2011.
This suggests that either there has been some important structural changes in the imports or that the
pattern of imports by product fluctuates somewhat 50. If Bahrain implements the TPS-OIC
agreement using only the normal track procedure, then it is unlikely that there would be any impact
on trade, as the current level of tariffs (the GCC common external tariff), is such that no further
reductions would occur. Of course, should there be reductions under the fast track then there may be
scope for a more substantial impact.
Bangladesh
Bangladesh’s trade data, as we have seen, is particularly scarce. The latest reported trade is for 2007.
Hence we use the TPS-OIC imports from Bangladesh as the mirror flow of the exports of Bangladesh
to the Contracting Countries of TPS-OIC. To avoid outliers, we have defined the list of products using
the average between 2007 and 2010, but we reported the trade for 2009 and 2010.
The top 10 products exported by Bangladesh to the Contracting Countries of TPS-OIC, as in Table 39
accounted for almost 75% of their exports and, as can be seen, are all textile products or garments.
Any reduction made on the applied tariffs by any of the Parties of TPS-OIC System is expected to
increase the trade with the particular member that makes the reduction. In terms of TPS-OIC exports
to Bangladesh (imports of Bangladesh from TPS-OIC), it can be seen from Table 40 that the top 10
products represented nearly 55% of total imports from the TPS-OIC. In these products, no effects are
expected in all those products where the MFN tariff is less than 10% as no reduction in tariff is
considered. On the other products, it depends if they are included in the list of products where the
tariff will be reduced. However, it is important to remark that as an LDC, Bangladesh will only need to
cover 1% of their products. From the list of top 10 imported products it would appear that tariffs
might be reduced for just one product (Palm oil) from 14.67% to 10%. On the face of it therefore it
does not seem as if Bangladesh would be required to liberalise its trade significantly.