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COMCEC Trade Outlook 2019

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In addition to compliance to the international standards, border agency cooperation (BAC) is

another important aspect of trade facilitation in global agenda. According to the WTO Trade

Facilitation Agreement, which was also ratified by 27 OIC Member Countries, the concerned

countries committed to cooperate in the following issues regarding cross border cooperation:

alignment of working days and hours,

alignment of procedures and formalities

development and sharing of common facilities

joint controls

establishment of one stop border post control

The level of border agency cooperation of the OIC Member Countries varies according to the

several indices measuring the countries’ level of border agency cooperation. According to World

Bank’s Logistics Performance Index (LPI), which measures the efficiency of the clearance

process scaling from 0 to 5, the Asian Group countries have the highest average score of 2.53 in

the efficiency of the clearance processes, followed by the Arab Group Countries with the score

of 2.46. On the other hand, African Group Countries have the lowest average with the score of

2.30.

Moreover, OECD External Border Agency Cooperation (BAC) Indicator, scaling from 0 to 2,

measures the border agency cooperation with neighbouring

and third countries. Accordingly,

the average of external cooperation for the Arab Group is 1.15, followed by the Asian and African

Group countries with the score of 1.11 and 0.82, respectively

41

.

Considering the importance of BAC for trade facilitation as well as increasing intra-OIC trade,

the 8

th

Meeting of the COMCEC Trade Working Group held on October 6

th

, 2016, was devoted to

“Improving the Border Agency Cooperation among the OIC Member States for Facilitating

Trade.” The research study and the participants of the working group highlighted the major

challenges faced by the Member Countries, among others:

Lack of coordination and cooperation among border agencies

Long, costly and inefficient customs procedures

Lack of harmonized working hours among the countries

Inadequate information exchange among the border agencies

TheWorking Group has come up with the following policy recommendations in order to address

the challenges faced by the Member Countries regarding the border agency cooperation:

Promoting the adoption of international standards in customs and other relevant cross

border trade and logistics matters as well as accession to the relevant international

conventions for harmonizing and simplifying rules and procedures related to the cross

border trade and logistics operations,

Promoting mutual recognition arrangements/agreements for border controls and trusted

traders,

Enhancing information exchange among the border agencies of the Member Countries

through enhancing connectivity of information and communication technology systems,

providing regular knowledge exchange platforms and participating in relevant

international networks,

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COMCEC Coordination Office, 2016b.