Trade Preferential System among the Member States of the OIC

Trade Preferential System among the Member States of the OIC (TPS-OIC) is one of the most important projects of the COMCEC to foster intra-OIC trade. This system is based on three agreements, namely the Framework Agreement, the Protocol on Preferential Tariff Scheme (PRETAS) and the Rules of Origin.

The Framework Agreement, which sets out the general rules and principles for the negotiations towards the establishment of the TPS-OIC, entered into force in 2002. The PRETAS, which complements the Framework Agreement by laying out the concrete reduction rates in tariffs in accordance with a time-table for implementation, entered into force in February 2010. The Rules of Origin, which will be applied for the identification of the origin of products eligible for preferential concessions under the TPS-OIC, entered into force in August 2011. Therefore, the legal basis of the system was completed.

In order to make the TPS-OIC system operational, 10 Member States have to fulfill two conditions at the same time, namely the ratification of the three TPS-OIC Agreements and the submission of the list of concessions to the TNC Secretariat. As of December 2014, required number of countries having met necessary requirements of the System has been reached.

However, for the entry into force of the System there are some practical steps that should be taken by the participating member states. The most important step in this context is updating the concession lists. By July 2017, Turkey, Malaysia, Pakistan, Jordan, Bangladesh and Iran have conveyed their updated concession lists.

In this regard, the 32nd COMCEC Ministerial Session held last year invited the GCC Secretariat, on behalf of its six member states, to convey their updated concession lists at their earliest convenience to the TNC Secretariat with a view to early utilizing market access opportunities to be brought by the TPS-OIC.

On the other hand, for successful implementation of the System, some internal measures are required to be undertaken by the Member Countries such as; printing TPS-OIC Certificate of Origin documents, conveying specimen impressions of stamps to the Trade Negotiating Committee Secretariat and completing the necessary internal legislative and administrative measures. After completion of the mentioned measures, the System would become fully operational.

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