TEN-YEAR PLAN OF ACTION 2016-2025 FOR STRENGTHENING INTRA-OIC TRADE PRESENTED BY THE ISLAMIC CENTRE FOR DEVELOPMENT OF TRADE TO THE 31 st SESSION OF THE STANDING COMMITTEE FOR ECONOMIC AND COMMERCIAL CO-OPERATION OF THE OIC (COMCEC) Istanbul Republic of Turkey 23 rd 26 th November 2015
DRAFT TEN-YEAR PLAN OF ACTION OF ICDT 2016-2025 FOR STRENGTHENING INTRA-OIC TRADE Recalling Resolution 5/4-Ex (IS) on enhancing Islamic solidarity, adopted by the Fourth Extraordinary Islamic Summit Conference held in Makkah Al Mukarramah, Kingdom of Saudi Arabia, on 26-27 Ramadan 1433 H (14-15 August 2012); Recalling the new vision document of the COMCEC entitled Making Cooperation Work the COMCEC Strategy for building an interdependent Islamic World adopted by the 4th Extraordinary Islamic Summit Conference held on 14-15 August 2012 in Makkah Al Mukarramah, Kingdom of Saudi Arabia; Taking into account the relevant parts of the Final Communiqué of the 41 st Session of the Council of Foreign Ministers of the OIC, held in Jeddah on 18 th and 19 th June 2014; relating to economic cooperation notably; "We urge the Secretary-General to prepare a comprehensive Work Plan at the end of the lifespan of the Ten Year Programme of Action (TYPOA) in all areas and particularly economic, social, humanitarian, cultural, scientific and technological fields ; Taking due account of Resolution No. 1/41, TYPOA of the 41 st session of the Council of Foreign Ministers of the OIC "on the status of the implementation of the OIC Ten-Year Programme of Action", which Reaffirms; The significance of the YPOA in providing the Islamic Ummah with a forward-looking blueprint to effectively implement the various OIC resolutions with a view to enhancing joint Islamic action ; And which Calls upon the Secretary General to convene an OIC Inter-Governmental Expert Meeting (EGM) to review and evaluate the implementation of the TYPOA (2005-2015) and propose a draft new OIC Programme of Action (2016-2025), while seizing the EGM with the contributions of the Standing Committees and all OIC Organs and Institutions to the Ten Year Programme of Action ; Following the verbal Note of the General Secretariat of the Organization of Islamic Cooperation, No. OIC/CAB-01/2014/004437 dated 20 th August 2014 addressed to ICDT and other subsidiary organs, specialized and affiliated institutions of the OIC concerning the implementation of resolution N 1/41-TYPOA of the 41 st session of the Council of Foreign Ministers of the OIC, held in Jeddah on 18 th and 19 th June 2014; In view of the imminent expiration of the TYPOA in December 2015 and the need to review the programme towards the elaboration of a new programme of Action for the next decade as of 2016 to 2025; ICDT has undertaken the drawing up of a Ten-Year Plan of Action including the outlines of the projects and activities that will be implemented during the financial years stretching from 2016 to 2025.
This plan encompasses a series of operational actions whose objectives is to boost trade in commodities and services and promote trade related investments between the OIC. This plan was developed from a diagnosis of the strengths and weaknesses of intra-oic trade, which remains below the potentialities of current and potential trade due to a number of problems and pitfalls listed by ICDT in various reports and studies. In fact, trade between the countries of the Organisation of Islamic Cooperation remains low; the share of intra-oic trade averaging around 15% of global trade of the OIC Countries during the decade 2000-2010. Although it reached 18.6% of total trade in 2013, this share is still low compared with the share of trade in the OIC countries with other regions of the world including the industrialized countries. In spite of the considerable efforts that have been made at the level of the OIC, as well as by aiming at promoting intra-oic trade and removing the bottlenecks, there are still several obstacles, which should be overcome: - Problems related to Market access: Tariff, para-tariff obstacles and very often nontariff obstacles; - Obstacles at the level of logistics: weak or inadequate Infrastructures, transports, Foreign trade, support services to international trade; - The existence of a non-diversified exportable supply, which is not adapted to the international norms and standards of international markets; - Lack of information on markets, products and business opportunities, in spite of the work carried out by the Islamic Centre for Development of Trade to that effect; - Scarcity of meeting opportunities and inadequate promotion of national products in the other OIC markets; - Complex administrative procedures at the level of foreign trade (customs, banking, port procedures etc ); - Lack of trained executives and technicians specialised in international trade; - The inadequacy and inefficiency of financing instruments, particularly, for the benefit of the SME-SMI. Thus, ICDT s Plan of Action for the 2016-2025 period will focus on the following fields: Trade Negotiations: implementation of the TPS/OIC and the study on the establishment of an Intra-OIC Free Trade Area of the new generation; Trade and investment promotion; Trade facilitation; Trade information; Electronic commerce; Training of human resources and capacity building; Studies.
DRAFT TEN-YEAR PLAN OF ACTION OF ICDT 2016-2025 FOR STRENGTHENING INTRA-OIC TRADE
Table 1: Trade Policy Main objective: To enhancing trade among the and to diversify products exchanged while respecting the advantages and the economic development level and the international commitments of Underlying objectives Expected results Practical measures Concerned organisations Recipients To Strengthen the Inter- Islamic trade in a bid to achieve the target of 25% of foreign trade of by 2025. To Launch new rounds of negotiations to expand and diversify the lists of goods while reducing tariffs. Examine the possibility of launching negotiations on services. To involve Regional economic numbering Member States those have already joined the TPS / OIC. Inter-Islamic trade growth of 0.5% per year, Implementation of the results of the 1st round of trade negotiations on the TPS / OIC, To Undertake to ensure harmonization of rules of origin and the simplification of trade regimes. To involve more OIC countries in trade negotiations including those have already adhered to other regional trade agreements. To Establish a system of compensation for losses caused by membership to TPS/ OIC. - To organize training seminars on TPS / OIC and its protocols and assess their impact on the economies of and economic within the OIC, - Publication of a Ministerial Declaration of COMCEC defining the roadmap for the period 2016-2025; - To organize meetings of the Trade Negotiating Committee and finalize outstanding issues: To establish the instruments to remove non-tariff barriers and establish dispute settlement mechanisms; - To harmonize rules of origin and simplify trade regimes levels of regional economic ; to Renew, by ministerial decision, the activities of the Consultative Group, composed of OIC institutions working in the field of trade, with a view to strengthening inter-islamic trade; - To continue to hold coordination meetings with the institutions of the OIC and regional economic ; - To organize training seminars as part of technical assistance to acceding to the WTO; Member State The OIC General Secretariat The Secretariat of the Trade Negotiating Committee, consisting of the CIDC and Coordination Office of the COMCEC, Regional economic, OIC institutions concerned, International and regional organizations concerned The public and private sectors in the and regional economic
- To Continue the holding of the meetings of the Consultative Group on Inter-Islamic trade Development; - To elaborate a feasibility study for the creation of a free trade area among the OIC ; - To carry out studies in order to identify areas with high trade potential among, specifying the most appropriate practical arrangements; - To carry out a study on the diversification of exports of goods and services among ; - To organize training seminars on TPS/OIC and its protocols and assess their impact on the economies of and economic within the OIC; -Publication of a Ministerial Declaration of COMCEC defining the roadmap for the period 2016-2025; - To organize meetings of the Trade Negotiating Committee and finalize outstanding issues: To establish the instruments to remove non-tariff barriers and establish dispute settlement mechanisms; - To harmonize the rules of origin and simplify trade regimes levels of regional economic ; - To prorogate, by ministerial decision, the activities of the Consultative Group, composed of OIC institutions working in the field of trade in order to strengthen inter-islamic trade;
- To Continue the holding of coordination meetings with the institutions of the OIC and regional economic ; - To organize training seminars as part of technical assistance to acceding to the WTO; - To carry on the meetings of the Consultative Group on Inter-Islamic Trade Development; - To elaborate perform a feasibility study for the creation of a free trade area among the OIC ; - To carry on perform studies to identify areas with high trade potential among, specifying the most appropriate practical arrangements; - To conduct a study on the diversification of exports of goods and services between Member State. To promote free export areas in the, To create new free exports areas in Increase the number of free zones exports in Member State To increase foreign investments in the area of free exports To organize meetings to promote free export areas in Member State To extend technical assistance to wishing to create free trade areas, To carry out a study on free exports areas To create a network of free export areas Regional economic OIC institutions concerned, International and regional organizations concerned The public and private sectors in the and regional economic
Table 2: Promotion Programme Main objective: to promote products, services and investment among Members States Underlying objectives To enhance trade among the OIC regions and between in order to achieve the target of 25% of the foreign trade of by 2025, To intensify and enhance the participation of in promotional activities initiated by the OIC institutions and, to promote formulas "consume OIC products" and "Made in OIC countries Expected results To make known the products of the and their adequacies to market needs, highlighting the high value-added product To increase the number of exporting SMEs in, To improve the level of participation of in fairs and business forums - To improve the capacity of member states in promoting their products through virtual trade fairs, To Create direct networking Practical measures To continue the organisation of Trade Fairs and Tourism Fairs every 2 years, and other trade fairs and business forums organized by the ICDT by virtue of the Regulations of the Fair, adopted by the COMCEC in 2002 To establish an integrated program of trade fairs, business forums and " buyers/sellers meetings," to promote the products and services identified by the study on areas with high trade potential To organize training sessions on organizational techniques of fairs and participation modalities To establish an integrated program to strengthen, upgrade and support the SMEs in their export efforts, Concerned organisations - Regional economic - OIC institutions Recipients - - Regional economic - OIC institutions
opportunities between economic operators in the (sellers, buyers, investors) To perfect the virtual fair on the OCDT s website in order to promote the products and services of the OIC, To create a permanent exhibition of the products and services of the at the headquarters of ICDT make all benefit from the advantages of the business centers and exhibition of products and services the Trade Fair and Tourism Fair every 2 years, and other trade fairs and business forums organized by the ICDT by virtue of the Regulations of the Fair, adopted by the COMCEC in 2002 - To establish an integrated program of trade fairs, business forums and buyers/ sellers meetings" in order to promote the
products and services identified by the study on areas with high trade potential. - To organise training sessions on the organizational techniques of fairs and participation modalities - To establish an integrated program to strengthen, upgrade and support the SMEs in their export efforts, - To perfect the virtual fair on the ICDT s website in order to promote the products and services of the OIC, - To create a permanent exhibition of the products and services of the at the headquarters of ICDT - To make all Member States benefit from the business centres and exhibition of products and services
Table 3: Trade Facilitation Main objective: to speed up the movement of goods across the borders and trade routes and simplification of transit arrangements and procedures Underlying objectives Expected results Practical measures Concerned organisations Recipients To reduce road barrier To co-ordinate and streamline transit systems, customs procedures, documents and regulations, To Create and make border stopping points operational, Integrated administration borders, IBM To Unify the standards and quality measures, To reduce technical barriers to trade Reduction of border transit time of goods by 50% Simplification of transit arrangements and procedures and reduction in the number of customs documents and widespread use of digital documents, Unification of the main customs documents at the levels of economic, In fact, co-ordination of work schedules levels Border access points, The non-material barriers to international transport and transit between the OIC countries have been lifted, To create international breakpoints at the level of major border entry To set up a working group on transport, To Create a transport network with communication reciprocal links To harmonize national transport regulations, To conduct a study on non-tariff barriers in the OIC To carry out a study on the axes of international transport between the OIC countries and identify needs and transport infrastructure projects at the level of these axes, To develop a statistical database on transport, To set up a national committees on trade facilitation and transport, composed of public and private sector, which would act as national focal points To strengthen cooperation between the ministries of transport and tourism and to identify the main barriers to the transport and tourism in the of the OIC, To ensure the training of human resources and upgrade the capacity of enterprises involved in the transport To organize working group meetings, -the regional economic OIC institutions Regional and international organizations and nongovernmental organizations Member State the regional economic OIC institutions -
points, Reduction of non-tariff barriers to the movement of goods. deriving from the Trade Negotiating Committee in order to examine the possibilities of reducing technical barriers to trade, To organize training sessions on trade facilitation, To create the OIC single window for trade facilitation and implementation of logistics efficiency; To create a body under the auspices of the COMCEC, for dialogue and cooperation between Customs administrations in the.
Table 4: productive capacity Main objective: to increase the productive and competitive capacity of the products of the OIC countries, including the development of Halal food industries Underlying objectives Expected results Practical measures Concerned organisations Recipients To improve the quality of products and enhance services performance in the OIC, To Develop value chains in order to integrate them into the institutions of the on the basis of regional complementarity while productivity improving To strengthen the development of strategic commercial goods: cotton, rice, wheat... To increase the volume of trade in Halal products and services. To encourage investment and FDI in order to promote complementarities, regional institutions development and implement value chains, ICDT should continue to organize the forum and Halal products exhibitions of the OIC and support the holding of trade fairs of this sector around the world, To perform market research for products and services identified by the study on areas with high trade potential, To organizing training sessions on quality systems. The regional economic The OIC institutions The regional economic OIC institutions
Table 5: trade information and the digital registration Main objective to improve the relevance and accuracy of information in the service of Inter-Islamic trade Underlying objectives Expected results Practical measures Concerned organisations Recipients To increase the use of electronic commerce among the OIC, To improve the market information systems in the To improve the Trade Information System of Islamic countries (TINIC) To use more instruments of electronic commerce, The generalization of Trade Information Systems to the Exports Promotion Centres Launching of data banks on investments, transportation and insurance relating to exports, To strengthen cooperation and coordination with the national focal points, the IDB and relevant OIC institutions, To create a virtual market for electronic payment in a bid to facilitate trade, To create a network of information centres with mutual interconnection and linkage Launching and implementing the virtual network of TPOs in the OIC, To carry on the technical assistance in order to upgrade the TPOs capabilities in the field of the digital economy, To Organize training sessions in the field of the digital economy and electronic commerce Islamic Centre for Development of Trade (ICDT), Trade Development and support organizations from public and private sectors The regional economic OIC institutions Regional economic OIC institutions Trade Development and support Organisations from public and private sectors
Table 6: production factors in the market Main objective: to develop the free movement of Directors and Expert between the regions of the Organisation of Islamic Cooperation Underlying objectives Expected results Practical measures Concerned organisations Recipients to promote the freedom of movement of businessmen, To harmonize regulations on Laws relating to crossborder coordination of residence To -Establish standards and agreements for the mutual recognition of skills To simplifying the procedures for the entry of businessmen and visitors to the, including visa facilities; Investment facilitation in the border areas and the creation of jobs; To establish Mutual Recognition Agreements (MRAs) on certain employment positions, and support skills of Standards and Metrology Institute for Islamic Countries) (SMIIC) To carry on developing databases on experts and consultants broken down by specialty, To organize an investment forum in border areas to create jobs, To organize a training seminar to harmonize regulations on the rights of establishment and mutual recognition of standards of skills, To Establish agreements for the mutual recognition of the rights of persons of establishment, movement transfer of funds and simplification of procedures for obtaining visas in the Regional, ICDT, SMIIC economic The Regional economic,