Governance of Transport Corridors in OIC Member States:
Challenges, Cases and Policy Lessons
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Corridor Promotion and Stakeholder Consultation.
Although we have not found specific information about which entity controls promotion of corridors,
a main objective of the TRANSTRAC project is “to promote reduction of trade and transport barriers
along the priority trade corridors of the country and in related border crossings”, as well as to set up a
“forum for trade stakeholders to seek consensus on facilitation measures” (Mena Transition Fund,
2013).
Capacity Building, Technical Assistance/Studies.
Besides the TRANSTRAC project, important aid, advice and funds are being supplied under the
“Deauville Partnership”. Set up by the G8 countries in 2011, this partnership “calls on partner countries
(Egypt, Jordan, Libya, Morocco, and Tunisia) to formulate homegrown economic and governance
reform programs that would enhance domestic competitiveness and promote trade and FDI. In return,
the Deauville partners (which include, in addition to the G8 countries, Kuwait, Qatar, Saudi Arabia,
Turkey, the United Arab Emirates, and nine international and regional financial institutions)
committed themselves to support the partner countries in achieving their goals of economic and
political trans- formation through three strategic pillars: governance, finance, and trade and
commerce.” (Rouis & Tabor, 2013). In the field of customs, recent reforms have been shaped largely
by European Union Association Agreements and Egypt’s “need to converge with the EU’s customs code
and processes”, while the United States have been providing technical assistance (Rouis & Tabor,
2013). Furthermore, several international organizations have helped build capacity for trade
facilitation and logistics. This goes for both national and regional projects. Among these partners are:
The World Bank, European Investment Bank (EIB), Asian Development Bank, EU, and United States
Agency for International Development (USAID). The World Bank for instance, “has been heavily
involved in helping several MENA (Middle East and North Africa) countries build the software and
institutions necessary for providing modern services” (Rouis & Tabor, 2013). This includes Egypt.
Under the EIB’s TRANSTRAC Project, a main aim is to “support preparation of trade and transport
corridors for Egypt” (Mena Transition Fund, 2013). Their plan is to promote trade facilitation and the
improvement of infrastructure and “transport and logistics services”. The project will provide training
to both the public and private sector, will execute “preparatory studies for border crossing facilities”,
and studies into improving infrastructure. “[…] activities will focus on key studies and action plans to
enable future investments in the trade corridors.” (Mena Transition Fund, 2013).
Legal Framework
Regarding International Transit Corridors, there are a few laws and agreements interesting to show:
Egypt is part of:
 The ECI Eight-Country and Territories Interconnection. (Together with Iraq, Jordan, Lebanon,
Libya, Syrian Arab Republic, and Turkey) and West Bank and Gaza. Initiated in 1988;
 PAFTA (1998): “The main provisions of PAFTA concern the progressive removal of tariffs (by
January 1, 2005) and of nontariff barriers to trade in goods among members (by 2010). More
recently, signatories of PAFTA have launched efforts to further integrate trade and investment in
services, and to address nontariff measures that restrict trade flows”;
 The Agadir Agreement for the Establishment of a Free Trade Zone (2006): “Original members
include Egypt, Jordan, Morocco, and Tunisia, with the potential to expand to Algeria, Lebanon,
Libya, Mauritania, the Syrian Arab Republic, and the West Bank and Gaza. The EU supported the
agreement with the aim of establishing a free trade area and as a possible first step in the
establishment of Euromed;”
 The Deauville initiative (2011) (A collaboration between G8 countries, Egypt, Jordan, Libya,
Morocco, and Tunisia), explained earlier;
 The Euro-Mediterranean Free Trade Area Agreement (2004): “Agreements with the EU “to provide
reciprocal market access”.” (Rouis & Tabor, 2013);
 The Protocol on the Preferential Tariff Scheme for the Trade Preferential System of the
Organisation of Islamic Countries (2010) (Meeuws, 2013).