COMCEC Trade Outlook 2019
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services imports grew by 3.1 per cent during 2009-2018 period. Thus, the share of services
exports has increased over the last decade from 39 per cent in 2009 to 42 per cent in 2018.
In the context of trade liberalization and facilitation, most of the OICmember states have showed
interest in joining the World trade Organization (WTO) 47. Up to date 44 OIC member states have
acceded to the WTO and 11 member states have the observer status. Afghanistan became the
last member of WTO on 29 July 2016. At the same time, 39 OIC Member States have already
ratified the WTO Trade Facilitation Agreement (TFA).
Regional Trade Agreements (RTAs) is another approach for trade liberalization. Most of the OIC
Member States also took part in one ormore RTAs over time. The number of RTAs, which include
one or more OIC Member States, has reached 113 by October 2019. Most of these RTAs are in
the form of FTAs. Most of the RTAs signed by the OIC Member States are bilateral and concluded
with the developed countries.
Global foreign direct investment (FDI) flows slid by 13 per cent in 2018, to 1.3 trillion USD from
1.5 trillion USD the previous year – the third consecutive annual decline, according to
UNCTAD’ 8. The analysis of this flow indicated that the global
FDI inflows and shares of developing and developed countries versus OIC countries. It reveals
that the developed countries continue to get the largest recipient of FDI with a share of 54 per
cent in global FDI inflows while the share of developing countries is 43 per cent in 2018. The
share of OIC countries in global FDI inflows remained significantly lower, below 7 per cent 2017.
COMCEC aims at enhancing economic and commercial cooperation among the 57 OIC Member
States. Since 1984, COMCEC has initiated many cooperation programs and projects towards
increasing intra-OIC trade and addressing the common challenges. Some of these programs and
projects have been realized successfully. Taking into consideration the diversity a trade patterns
of the Member States and the common challenges faced by them, the COMCEC Strategy has
identified trade as one of its cooperation areas.
Under this cooperation area, the Strategy defined trade liberalization, trade facilitation, trade
promotion and trade financing as the output areas in order to reach its strategic objective, which
is “enhancing trade among the Member States”. Furthermore, the Strategy brought two new
implementation instruments, namely Trade Working Group and COMCEC Project Funding to
reach its target.
The implementation of the Strategy with the active participation of the Member States will
contribute to improving the trade environment in the Member States and enhancing intra-OIC
trade.
As the most important project of the COMCEC in the field of trade, TPS-OIC will be hopefully
operationalized soon with the completion of some procedures by the participating Member
Countries. The System will not only facilitate increasing the intra-OIC trade, but also build a
framework for cooperation among the OIC Member Countries. Thus, it will be a basis for further
cooperation among the member countries.
47 The World Trade Organization (WTO) is the only global international organization dealing with the rules of trade between
nations. At its heart are the WTO agreements, negotiated and signed by the bulk of the world’s trading nations and ratified in
their parliaments. The goal is to ensure that trade flows as smoothly, predictably and freely as possible.
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