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Strengthening the Compliance of the OIC Member States

to International Standards

7

1

INTRODUCTION AND PROJECT OVERVIEW

Product standards are an important source of trade costs for many countries, particularly developing

and least-developed countries, including OIC member states. On the one hand, countries with weak

standards infrastructure lack the support services necessary to promote competitive, high value added

industries in the export sector. In addition, differences in standards design and enforcement between

countries can add to trade costs, and effectively keep some developing country producers out of

important international markets. Product standards therefore pose two crucial issues for OIC member

states: market access, and export competitiveness. This project examines product standards and

international harmonization from those twin dimensions.

The value added of this project is that provides a basis in information and policy analysis upon which

OIC countries can move forward through COMCEC on international standards, with the aim of reducing

trade costs and boosting trade performance. Of particular importance on a policy level is the role of

international standards in mediating relationships in Regional and Global Value Chains (GVCs). Greater

reliance on international standards in GVC-intensive sectors can be expected to assist firms in joining

value chains, and moving up into higher value added activities that have important spillover effects for

the economy at large. The project’s substantive potential is set out in graphical form in Figure 1.

Figure 1: Project motivation—from diagnosis to improvement of outcomes

Source: Author

International

Standards

Diagnostic

Exercise

• Identification of

barriers and

deficiencies.

• Institutional

diagnostics.

Identification

of Best

Practice

• Case studies of

selected OIC

member states.

• Case studies of

selected non-

OIC member

states.

Policy Basis

for Reducing

Trade Costs

and Boosting

Trade

Performance