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Improving Transnational Transport Corridors

In the OIC Member Countries: Concepts and Cases

171

Of the five Mashreq North-South Corridor countries, only Jordan is a member of the World

Trade Organization (WTO). However, several countries in the Mashreq participate in bilateral

and regional integration agreements or in sub regional economic blocs.

As a result of a comprehensive discussion over two consecutive sessions of the

intergovernmental meeting of the ESCWA Committee on Transport, a manual for the

establishment of national transport and trade facilitation committees (NTTFCs) was adopted

at its fourth session, held in Beirut on 14-16 January 2003, with the aim of assisting countries

to establish such committees. Ten member countries established NTTFCs between 2003-2012,

namely, Egypt, Iraq, Jordan, Lebanon, Oman, Palestine, Saudi Arabia, the Sudan, the Syrian

Arab Republic, and Yemen.

Trade Volumes

Most of the Mashreq North-South Corridor region’s external trade involves three distinct

markets, Europe, the Persian Gulf, and Asia. Each presents a unique challenge not only because

of their geographic location but also because of the limited transport mode choices available.

All three markets can be served by airfreight, but at considerable cost. In addition, Asia is

served by maritime routes, the Gulf primarily by road, and Europe by road and sea.

As shown in

Table 24,

intra trade on this corridor is only 6.3% of the total trade. There is no

evidence that this will be increasing, mainly due to the fact that each country has access to its

own port.

The LPI of the corridor countries is showing a slight negative trend in the last decade, as

shown in

Figure 64.

In 2016, the average LPI of the corridor countries is 2.79, which is lower

than the world average 2.88. This means that the physical performance is undermined by lack

of harmonized systems and excessive NTBs.

Table 64: Trade Matrix between corridor countries in 2015

Source: Fimotions (2017), analysis on data o

n www.trademap.org .

JOR SAUDI

SYR TURKEY YEMEN Total

World

%

JOR

914.01

N/A 102.26 35.14

1,051 7,509 14.0%

SAUDI

2,325.50

N/A 1,835.23 563.63

4,724 207,572 2.3%

SYR

89.10 95.48

65.39 12.40

262

732 35.9%

TURKEY

664.76 2,905.08

N/A

452.53

4,022 142,606 2.8%

YEMEN

3.06 39.07

N/A 0.02

42

664

6.3%

Total

3,082 3,954

-

2,003 1,064 10102.7

World 19,207 129,796 4,304 198,602 6,424

359,083

%

16.0% 3.0% 0.0% 1.0% 16.6%

2.8%

COUNTRY

Imports (Million USD)

Exports (Million USD)