COMCEC Trade Outlook 2016
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 Offering satisfactory prices to customers
 Accessing export distribution channels
 Difficulties in enforcing contracts
 Lack of knowledge on foreign market requirements
 Limited business development services, marketing and branding
 Excessive transportation / insurance costs
Government agencies, chambers and business unions provide consultancy services, business
development assistance, tax advantages, financial support etc. to promote exports in their
countries. However due to limited financial resources, underdeveloped human and institutional
capacities, many member states could not provide adequate support to their firms.
The undiversified economic structure also constitutes an important obstacle for many OIC
Member States in increasing their exports. The dependence on few products in exports also
makes these countries vulnerable to foreign demand or price shocks.
Trade Promotion Organizations (TPOs) are one of the most important institutions utilized by
governments to support SMEs exports. Most of the OIC Member States now have newly
established institutions or existing governmental bodies that serve as TPOs. The analytical study
titled “Promoting the SMEs Exports in the OIC Member Countries: The Role of the TPOs”
(COMCEC,2013a) commissioned by the COMCEC Coordination Office for the 1st Meeting of the
COMCEC Trade Working Group, designates following actions as the main services provided by
TPOs;
 Provision of information about overseas markets,
 Business consultancy for new exporters or companies that intend to expand their
international business,
 Networking with potential business partners in foreign markets,
 Support in participation to trade fairs and organization of mission tours to foreign
markets,
 Seminars and training courses to enhance the managerial ability of exporters and/or
mentoring services,
 Financial support to exporters.
The study recommends several strands of actions for policy development to OIC Member States
such as;
 Greater emphasis on intra-OIC trade activities through the development of multilateral
agreements or possible free trade zone agreements,
 Institutional focus on developing soft infrastructure of skills development and of
entrepreneurship,
 Strengthening and development of an exclusive front on new Technologies,
 Promotion of public-private partnerships,
 Development of a data infrastructure, to monitor business dynamics and performance
by size of firms.
Attracting foreign direct investment (FDI) is considered a vital instrument for diversifying the
exports. Many empirical studies have examined the impact of FDI inflows on export