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

With Special Emphasis on the TPS-OIC

Nineteen agreements only involve OIC members, and the majority involves both OIC members

and one or more other countries.

4.2.

TRENDS

THE

OIC

COUNTRIES

TRADE

AND

TRADE

LIBERALISATION

This section provides a brief overview of OIC trade trends. The focus is on intra-OIC trade and

how it compares with trade to non-OIC countries. An interested reader can find some other

information on OIC trade trends in COMCEC (2014). The aim of this section is to highlight the

relative

importance of intra-OIC trade, as understanding this is fundamental to considering the

possible role

of greater intra-regional integration on trade, development and economic growth

for the countries concerned.

An Overall Picture of OIC Trade

In 2011, total imports of OIC countries for which data is available stood at USD 1,493 billion

representing around 9% of world imports

. The global share has increase from around 6% in

2000. OIC exports in 2011 amounted to USD 1,829 billion, or 11% of world total, up from 8%

back in 2000.

Out of the 57 OIC countries the 10 largest exporters reporting trade data in 2010 ac- counted

for 83% and the 20 largest for 98% of total OIC exports to the world

. The five largest

exporters are Saudi Arabia (17% share in total OIC exports), Malaysia (13.7%), Indonesia

(10.9%), UAE (9.3%), and Turkey (7.8%). The corresponding figures for the year 2000 are

Saudi Arabia (15.2%), Malaysia (19.4%), Indonesia (12.2%), United Arab Emirates (6.0%), and

Turkey (5.4%). Hence, Saudi Arabia, the UAE and Turkey have seen an increase in their share,

while Malaysia and Indonesia have seen a decline in their relative importance. These figures

therefore show that in terms of size, and value of trade there are very significant differences

and asymmetries between the OIC countries.

This is based on the exports of 38 OIC countries that report trade data for 2011 (Comtrade via WITS). In

2000 48 OIC countries reported trade data. Values are for net exports (i.e. gross exports minus re-exports).

Unless otherwise indicated this whole section provides calculations based on net export and import data.

This is based on the exports of 41 OIC countries that report trade data for 2010. 2010 was selected as giving

the largest number of countries for which trade data is reported for a relatively recent year. Beyond 2011, the

number of reporting countries drops further. The countries which are excluded from the list of 40 are:

Bangladesh, Brunei, Chad, Comoros, Djibouti, Gabon, Guinea, Guinea-Bissau, Iraq, Kuwait, Sierra Leone,

Sudan, Tajikistan, Turkmenistan, and Uzbekistan. Of these countries Kuwait has substantial exports, in excess

of 4 per cent of total OIC exports in 2009.