Preferential Trade Agreements and Trade Liberalization Efforts in the OIC Member States
With Special Emphasis on the TPS-OIC
172
Table 42: Top 10 Jordanian Imported Products from TPS-OIC Countries 2012 & 2013 (1000s USD)
Product Product Name 2012 2013 MFN
Imports Share Imports Share Tariff
271019 Petroleum oils 1,511,705 22.67% 594,447 10.33% 25
271111 Natural gas, liquefied 296,610 4.45% 282,357 4.91% 30
293100 Organo-inorganic comps 134,160 2.01% 118,610 2.06% 0
390110 Polyethylene 100,165 1.50% 95,607 1.66% 0
390120 Polyethylene 71,680 1.08% 85,653 1.49% 0
170199 Cane/beet sugar 89,108 1.34% 66,537 1.16% 17.5
711319 Articles of jewellery 46,686 0.70% 97,366 1.69% 20
220290 Non-alcoholic beverages 56,117 0.84% 65,378 1.14% 30
390210 Polypropylene, 54,096 0.81% 64,369 1.12% 0
40210 Milk in powder/granules/oth 44,205 0.66% 44,565 0.77% 3.3
Grand Total 2,404,533 36.06% 1,514,887 26.33%
Source: Comtrade using WITS, tariff data from TRAINS database
Malaysia
The top 10 Malaysia products exported to the Parties of TPS-OIC System represent around 55% of
the total Malaysia exported products (excluding oil) to the agreement. On the import side, only two
products on the lists would be applicable for tariff reductions as their tariffs are above the 10%
threshold. These products are both polyethelene where the current tariff is 30%. Hence should they
be included these tariffs could go down to 25% giving the Parties of TPS-OIC System a relatively
small preference margin of 5%. These two products currently account for just under 3.5% of
Malaysian imports and are clearly quite heavily protected. There is scope for greater effects should
Malaysia choose to voluntarily, under the fast track procedure, reduce these tariffs further. However,
given the high MFN tariff, a greater degree of intra-bloc liberalisation may then lead to trade
diversion in these products.