Trade Preferential System of the OIC (TPS-OIC)

The objectives of the subject “Trade Preferential System of the Organisation of Islamic Cooperation” are the following:

1. To understand the aims and characteristics of the Trade Preferential System of the Organisation of Islamic Cooperation
2. To analyse the Protocol on the Preferential Tariff Scheme (PRETAS)
3. To know the functioning of the Rules of Origin under the Trade Preferential System (TPS-OIC)

Description: Trade Preferential System of the OIC.

The Trade Preferential System (TPS-OIC) among the Member States of the Organisation of Islamic Cooperation (OIC) includes Related Subjects to foreign trade as:

1. Application of the Most-favoured-nation principle
2. Equal treatment of the member countries of the Organisation of Islamic Cooperation
3. Special Treatment for the Less Developed Countries
4. All product groups (including the agricultural products)
5. Tariff and non-tariff barriers. Technical Barriers to Trade (TBT)
6. Rules of origin (signed by thirty-two countries, in force: 2011)

The Trade Preferential System of the Organisation of Islamic Cooperation (OIC) is based on three agreements:

1. Framework Agreement
2. Protocol on the Preferential Tariff Scheme (PRETAS)
3. Rules of Origin

The Member Countries that have signed the Trade Preferential System (Framework Agreement + PRETAS + Rules of origin) among the OIC Member States are Bahrain, Bangladesh, Jordan, Kuwait, Malaysia, Morocco, Oman, Pakistan, Qatar, Saudi Arabia, Syria, Turkey, the United Arab Emirates

The Member Countries that have signed only the Framework Agreement + PRETAS of the Trade Preferential System are the Arab Republic of Egypt, Guinea, Indonesia, Iran, Mauritania, Niger, Palestine, Sudan, Somalia, Tunisia, Sierra Leone, the Gambia, Guinea-Bissau, Burkina Faso, Cameroon, the Comoros, Djibouti, Benin, Nigeria, and Ivory Coast.

The Member Countries that have signed only the Framework Agreement of the Trade Preferential System are Brunei Darussalam, Chad, Gabon, Iraq, Lebanon, Libya, Maldives, Senegal, and Uganda.

The Member Countries that have not ratified/signed the Framework Agreement (not members of the Trade Preferential System OIC) are Afghanistan, Algeria, Albania, Azerbaijan, Guyana, Kazakhstan, the Kyrgyz Republic, Mali, Mozambique, Suriname, Tajikistan, Togo, Turkmenistan, Uzbekistan, and Yemen.

SOURCE: OIC

The Trade Preferential System among the OIC Member States entered into force on October 2003.

The responsible agency for the implementation of the agreement is the Standing Committee for Economic and Commercial Cooperation of the Organisation of Islamic Cooperation (COMCEC)

The Preferential Tariff System for TPS-OIC (PRETAS) defined: rate of tariffs and para-tariff and non-tariff reduction (effective in 2010).

1. The main religion of the Trade Preferential System among the Member States of the OIC (TPS-OIC) member states is Islam
2. The TPS-OIC is an Islamic Agreement of the Islamic Civilisation and African Civilisation