Proceedings of the 13 th Meeting of the
COMCEC Agriculture Working Group
12
 widespread smallholder farming practices across the OIC (which means cost
disadvantages, barriers against modernization, and other supply chain issues act as
significant barriers to access to global markets),
 the limited access to credit and to technical knowledge,
 the competition among OIC members in third party markets due to the similarity of
products,
 data limitations (concerning both availability and reliability), and
 lack of evidence on the welfare and growth effects of alternative agricultural trade
policies.
Questions and Remarks
Question: Why does there exist a high potential but low intra-OIC shares?
Answer: Prof. SAYAN stated that the research presented in this meeting identifies five particular
product divisions as the ones that carry the greatest potential to boost intra-OIC agricultural trade.
Four of these product divisions have high average tariffs in general, and two have the highest rates
among the major trade blocs. In such product divisions, tariff protection is the main reason. More
generally, the OIC member countries do not have a strong degree of agricultural trade integration
through trade agreements.
Question: What are the reasons that can be mentioned with regards to the lack of interest in
establishing trade agreements within the OIC?
Answer: Prof. SAYAN underlined that the main reason behind the lack of interest in establishing
trade agreements within the OIC is the high propensity of the OIC member countries to have trade
agreements with the non-OIC countries and non-OIC trade blocs. Besides, as mentioned in the
report, the OIC countries have similar factor endowments and export products. The report
identifies bilateral and multilateral arrangements in tariff reductions as primary policy actions to
promote intra-OIC agricultural trade.
Remark: The report attributes particular importance to trade agreements. Does it include a
reference to the recently established Continental Free Trade Area of Africa?
Answer: Prof. SAYAN expressed that the report is indeed referring to the Continental Free Trade
Area of Africa, in the final chapter, as a promising case that can serve as an example to potential
arrangements that would contribute to the promotion of intra-OIC agricultural trade.