Enhancing Africa’s trade potential: The key role of trade...

Enhancing Africa’s trade potential: The key role of trade and transport

facilitation legal instruments

Background note

A. Introduction

The 2030 Agenda for Sustainable Development and the Addis Ababa Action Agenda

acknowledge that international trade is an engine for inclusive economic growth and poverty

reduction, and contributes to the promotion of sustainable development for countries. However

high costs of trade constrain African countries’ trade potential, in particular the landlocked

developing countries (LLDCs) who because of long distances from the nearest seaports and

poorly developed transport and transit systems have to pay more than double what coastal

countries incur as well as require a longer amount of time to send and receive merchandise from

overseas markets. According to World Bank data the LLDCs pay trade costs that are more than

twice that of the countries and these costs have been increasing over time.

Reducing the high costs and improving the export competitiveness of the LLDCs requires that

the LLDCs and transit countries work together to improve transit transport and trade facilitation.

Effective co-operation of the LLDCs and transit developing countries is crucial for their

increased participation in international and regional trade and coordinated development of transit

transport infrastructure. This involves the LLDCs and transit countries working together to

improve the soft infrastructure that includes the legal framework (international transit transport

and trade facilitation treaties, and regional, sub-regional and bilateral agreements), customs and

border procedures, automation of processes, transparent and consistent fees and charges,

regulatory consistency in how rules at the border are applied, harmonization of relevant policies,

and strengthening of the institutions involved including in the transport sector, customs,

immigration and others. It also involves LLDCs and transit countries working together to

develop the hard physical infrastructure such as roads, bridges, railroads, seaports, and airports

that act as the necessary landing docks for the business of doing trade.

There are several legal instruments that offer legal and regulatory framework to facilitate transit

transport and trade facilitation at international level such as the International Convention on the

Harmonization of Frontier Controls of Goods, the Customs Convention on the International

Transport of Goods under Cover of TIR Carnets (TIR, 1975), the WTO Trade Facilitation

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Agreement and the Revised Kyoto Customs Convention. At regional and sub-regional levels

there are also supportive legal instruments as identified in the 2014 SSATP report “A Review of

International Legal Instruments: Facilitation of Transport and Trade in Africa”.

The Vienna Programme of Action (VPoA) for the LLDCs for the decade 2014 to 2024

underscores the importance of partnerships between LLDCs and transit countries for the

improvement and constant maintenance of their infrastructure connectivity and of technical and

administrative arrangements in their transport, customs and logistic systems while also stressing

the importance of promoting enabling legal environments and institutional arrangements. The

VPoA stresses the need to promote harmonization, simplification and standardization of rules

and documentation, including the full and effective implementation of international conventions

on transport and transit and bilateral, sub-regional and regional agreements. The VPoA stresses

that partnerships between LLDCs and transit countries and promotion of an enabling legal

environment are mutually beneficial for the improvement and constant maintenance of their

infrastructure connectivity and of technical and administrative arrangements in their transport,

customs and logistic systems. The VPoA also underscores that collaboration must be promoted

on the basis of the mutual interests of both landlocked and transit countries.

The VPoA, under its priority areas on fundamental transit policy issues and infrastructure

development, sets specific, ambitious objectives of reducing travel time along corridors with the

aim of allowing transit cargo to move 300-400 kilometres per 24 hours; significantly reducing

the time spent at land borders; improving intermodal connectivity so as to ensure efficient

transfers from rail to road and vice versa and from port to rail and/or road and vice versa,

significantly increasing the quality of roads, including increasing the share of paved roads;

expanding and upgrading the railway infrastructure in LLDCs, where applicable; and completing

missing links in the regional road and railway transit transport networks. In order to achieve

these specific goals within the ten years of implementing the VPoA, it is important to improve

transit cooperation between the LLDCs and the transit countries under the framework of relevant

legal instruments.

On trade facilitation, the specific objectives of the VPoA are: to further simplify, harmonize and

streamline border crossing and transit procedures; to improve transit facilities and their

efficiency with the aims of reducing port and border delays and transaction costs for LLDCs,

respectively; and to ensure that all transit regulations, formalities and procedures for traffic in

transit are published and updated in accordance with the World Trade Organization (WTO)

Trade Facilitation Agreement (TFA). Achievement of these specific objectives will depend on

improved cooperation between the LLDCs and the transit developing countries under the

framework of the WTO Trade Facilitation Agreement.

The African countries adopted Agenda 2063 which is a long-term regional framework for

development that aims to achieve an integrated, prosperous and peaceful Africa. Agenda 2063

has 7 aspirations and aspiration 2 provides details on how the continent will enhance its trade

potential. It notes that Africa shall be a continent where the free movement of people, capital,

goods and services will result in significant increases in trade and investments amongst African

countries rising to unprecedented levels, and strengthen Africa’s place in global trade. It also

notes that by 2063 the necessary infrastructure will be in place to support Africa’s accelerated

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integration and growth, technological transformation, trade and development. It further notes that

the world-class infrastructure accompanied by trade facilitation will see intra-African trade

growing from less than 12% in 2013 to approaching 50% by 2045 and African share of global

trade rising from 2% to 12%. Achievement of this aspiration and targets will depend on

improved cooperation between the countries in the region to further enhance transport

infrastructure and trade facilitation through effective implementation of supportive legal

instruments.

According to discussions, meetings and studies that have been undertaken by OHRLLS and ECA

there is need to support Member States to raise their awareness and understanding of the

potential benefits and implications of accession to international and regional conventions related

to the facilitation of transport and trade. Member States need to be informed about the

Conventions and Agreements that provide for faster transit and efficient border-crossing. It is

also important to intensify capacity-building assistance, and training programmes to all

stakeholders to enhance their knowledge and skills.

Against this background, the aim of this background note is to provide details on the benefits of

becoming party to selected international conventions on transport and trade facilitation, review

the status of ratification of selected international conventions, and suggest relevant

recommendations. This background note focuses on international conventions. It is also

important to underscore that acceding to a Convention is a critical first step – but the benefits

only come from effective implementation.

B. Importance of trade for Africa and trade trends

International trade is a key driver for economic development, along with a well-developed and

efficient transport infrastructure system. Africa’s development strategy of regional integration is

premised on the promotion of trade among African countries as a driver of development through

economies of scale and complementarities, given that Africa is made up of many countries some

of which are small or landlocked. Trade is important for African countries. The World Bank data

shows that trade as a percent of GDP1 is equivalent to more than 70% of GDP in most of the

countries.

Figure 1 shows that the exports of goods and services have significantly increased overall for

non-LLDC countries in mainland Africa from 2000 to 2013, despite the decrease experienced

during the global financial crisis in 2008-2009 and also between 2012 and 2013. The LLDCs

have experienced some increase which is much lower compared to the other countries on

mainland Africa. Furthermore, the average exports from LLDCs are much lower at 15% of the

average of other mainland African countries.

1 Trade is the sum of exports and imports of goods and services measured as a share of gross

domestic product.

4

Figure 1. Trend of Total Exports of Goods and Services, 2000-2013 (US$ Current) African

LLDCs and rest of mainland Africa

Source: UNCTAD database

Figure 2. Trend of Average Exports of Goods and Services, 2000-2013 (US$ Current) African

LLDCs and rest of mainland Africa

Source: UNCTAD database

Africa’s intra-regional trade is about 12% indicating that African countries do not trade much

with each other and are therefore unable to fully harness the synergies and complementarities of

their economies and take full advantage of the economies of scale and other benefits. More

efforts are required to boost intra-regional including improvements in both the hard and soft

0

100000

200000

300000

400000

500000

600000

700000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Total Exports LLDCs Totatl Exports Rest of Mainland Africa

0

5000

10000

15000

20000

25000

Average, LLDCs - MainlandAfrica

Average, Non-LLDCs -Mainland Africa

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infrastructure. The landmark tripartite agreement between COMESA (Common Market for

Eastern and Southern Africa, 19 countries); SADC (Southern African Development Community,

15 countries) and the EAC (East African Community, 5 countries), which was launched in

Sharm El Sheikh in June 2015 created the biggest trading block in Africa, with 26 out of the 54

African Union member countries, and a market of close to 620 million consumers. The African

leaders, in their 2012 summit in Addis Ababa, decided to establish a Continental Free Trade

Area (CFTA) by an indicative date of 2017. The CFTA will bring together fifty-four African

countries with a combined population of more than 1.2 billion people. The African Union also

has an Action Plan for Boosting Intra-Africa Trade aimed at deepening market integration and

significantly increasing the volume of intra-Africa trade. The plan has seven clusters that include,

Trade Facilitation, Trade Policy, Productive capacities, Trade related Infrastructure, Trade

Finance, Trade Information and Factor Market integration. Regional integration and favourable

trade agreements between African countries continue to be critical to this process.

In order to improve trade facilitation, it is very important to lower Africa’s trade costs that are

higher than the other regions of the world and constitute a serious impediment to trade and

economic growth. Reducing the costs of trade will tend to stimulate increased trade, particularly

for LLDCs where transport costs are highest as shown in figure 3.

Figure 3. Cost of Exporting One Twenty-foot equivalent Unit Container from Africa

Source: World Bank Data base

African countries and Regional Economic Communities (RECs), to a varying degree, are

implementing some trade facilitation measures aligned to those of the inter-national agreements

such as the Trade Facilitation Agreement. Most of the RECs are implementing several initiatives

in the areas of: Customs - regional customs guarantee schemes, harmonized customs documents,

customs information sharing, interconnectivity of customs systems, introduction of Single

Customs Territory, and Authorized Economic Operators (AEOs); Integrated/coordinated border

management - (One Stop Border Posts (OSBPs), harmonization and extension of working hours.

0

500

1000

1500

2000

2500

3000

3500

4000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Average, LLDCs Average, Non-LLDCs - Mainland Africa

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Transit transport - harmonized road transit charges, Carrier’s License Schemes, Third Party

insurance schemes, harmonized axle load limits; and Information technology - national and

regional Single Windows, regional cargo tracking. Notwithstanding these initiatives, African

countries will stand to benefit more from ratifying and effectively implementing some relevant

international conventions. Harmonizing transport and trade facilitation policies will foster

convergence and ultimately create larger trading opportunities continent-wide. The next section

highlights some selected International Conventions.

C. Highlights of selected International Conventions

1. WTO Trade Facilitation Agreement (WTO)

In December 2013, WTO members concluded negotiations on a Trade Facilitation Agreement

(TFA) at the Bali Ministerial Conference, as part of a wider “Bali Package”. An amendment

protocol for the TFA was adopted by the WTO General Council in November 2014 to bring the

TFA into the WTO’s legal framework. The Agreement will enter into force when two-thirds of

WTO members ratify the TFA and deposit their instruments of acceptance with the WTO

Secretariat.

Summary of Potential Benefits

The WTO TFA marked a milestone achievement as it aims at further expediting the movement,

release and clearance of goods, including goods in transit and thereby significantly cutting the

costs of trade. It also sets out provisions for customs cooperation. Of particular importance for

LLDCs are the provisions covering goods in transit, as well as the requirements on customs-

related fees, procedures and documentation; transparency; trade facilitation measures; and

improving cooperation between different countries’ customs authorities and border agencies.

Additionally, the Agreement contains innovative special and differential treatment provisions for

developing countries, which will be related to the capacity of each country.

The WTO notes that the full implementation of the TFA will have a greater effect on some

product sectors and regions than on others. In particular, it notes that by speeding up the

clearance of goods across borders, trade facilitation could provide a big boost to trade in

perishable agricultural goods and to intermediate manufactured goods. According to an OECD

(2015) study2, the full implementation of the 2013 Trade Facilitation Agreement could reduce

the costs of trade between 12.5 per cent and 17.5 per cent among both developed and developing

countries, with developing countries that are open to trade likely to benefit the most. The WTO

notes that full implementation of the WTO TFA will reduce global trade costs by an average of

14.3% and African countries are expected to see the biggest average reduction in trade costs3.

World Bank research based on Logistical Performance indicators (LPI) found that reducing trade

logistics costs by half could raise trade by 15 per cent and production by 5 per cent globally4.

2 OECD, 2015, Implementation of the WTO Trade Facilitation Agreement: The Potential Impact on Trade Costs. 3 WTO, 2015, World Trade Report 2015; Speeding up trade: Benefits and Challenges of Implementing the WTO

Trade Facilitation Agreement. 4 World Bank, 2014, Connecting to compete: 2014 Trade Logistics in the Global Economy.

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Other benefits from the full implementation of the WTO TFA include: Creation of significant

export diversification gains for developing countries; increased opportunities for implementing

developing countries to participate in global value chains; increased likelihood of micro, small

and medium-sized firms to export and to increase their export shares than large firms; and

increased ability for developing countries to attract more foreign direct investment (WTO, 2015).

Status of Ratification

The TFA will enter into force once two thirds of WTO members, (about 108), complete their

domestic ratification process. Early ratification and subsequent implementation of the WTO

Trade Facilitation Agreement is very important. There has been encouraging progress in the

ratification of the agreement. Some LLDCs and transit countries are among those who have

already ratified the agreement. As of 16 March 2016, a total of 71 countries worldwide had

ratified the agreement of which 12 are African countries including 5 LLDCs (see annex 1 for

details).

Status of Ratification of the World Trade Organization Trade Facilitation Agreement

Africa Asia-Pacific Latin America

and Caribbean Europe Other

Number of Countries Ratified 12 15 9 32 3

Number of Total Countries in the Region 54 55 33 48 4

Percentage of Ratification 22% 27% 27% 67% 75%

Source: WTO

It is important to encourage countries in the region to ratify the agreement so as to enable the

agreement to come into force as soon as possible. Furthermore, the LLDCs and transit

developing countries should make greater use of the Trade Facilitation Agreement by filing

necessary notifications to get technical assistance.

How to become a party to the agreement?

A WTO member should formally ratify the TFA and deposit their instruments of acceptance with

the WTO Secretariat.

2. Customs Convention on the International Transport of Goods Under Cover of TIR

Carnets (The TIR Convention), 1975. (United Nations Convention5)

The TIR Convention is a UN Convention which is a valuable trade and transport facilitation

instrument in place in an increasing number of countries. The Convention offers legal and a

procedural or operational framework for transit. The TIR Convention adopted in 1975 is a

successor agreement to the Customs Convention on the International Transport of Goods under

cover of TIR Carnets adopted in 1959. Today, TIR is operational in 58 countries.


The TIR Convention enables a vehicle or container covered by a specific customs document -

The TIR Carnet - to journey from a customs office of departure to a customs office of destination

with minimum interference from customs authorities when crossing international borders. TIR

5 Secretariat of the Convention is UNECE

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Carnets are issued by the International Road Transport Union (IRU) in Geneva and distributed to

national associations representing IRU in the countries which are Contracting Parties to the

Convention. To obtain a TIR Carnet, the carrier must belong to a national association which can

furnish professional and economic guarantees and which is authorized to issue TIR Carnets. The

vehicle and containers used must fulfill technical and other conditions laid down in the

Convention.

The essential pillars of the TIR transit system are that: a) goods should travel in secure vehicles

or containers; b) duties and taxes at risk should throughout the journey be covered by an

internationally valid guarantee, c) the goods should be accompanied by an internationally

accepted TIR Carnet taken into use in the country of departure and accepted in the countries of

transit and destination, d) customs control measures taken in the country of departure should be

accepted by the countries of transit and destination and e) national associations, natural and legal

persons and international organizations need to be authorized by competent national authorities

or the TIR Administrative Committee to apply the TIR system.

Thus, the TIR system is an example of how an international guarantee chain operates. A

guaranteeing association in a particular country and authorized by the customs authorities of that

country, guarantees payment within that country of any duties and taxes which may become due

in the event of any irregularity occurring in the course of a TIR transport operation. This national

guaranteeing association guarantees payment of the duties and taxes of national and foreign

carriers under TIR Carnets which have been issued by that national guaranteeing association

itself or by an association in another country.

Box 1. Benefits of the TIR system — Goods move across international borders with minimum interference from authorities because of TIR and related streamlined border crossing procedures — Opening the TIR procedure and customs clearance take place at internal customs points and not at often congested borders or in likewise crowded ports — Possibility to implement dedicated quick “Green Lanes” for all TIR trucks with all related facilities — Reduced delays resulting in less costs for trade and international transport of goods — Accrued security in the supply chain: only approved hauliers and vehicles; loaded vehicles doing transport operations sealed with seals mutually acknowledged by customs — Guaranteed payment of customs duties and taxes in the case of irregularities thanks to a reliable international guarantee chain — No restriction as to the mode of transport used, i.e. TIR intermodal operations are possible — High rate of return on investments, if needed, for the introduction of the system coupled with reasonable permanent costs of operation for all actors involved: trade and transport operators, customs, etc.; most physical facilities and institutional arrangements as well as system maintenance required by TIR management serving various other purposes than just the operation of the TIR system (spin-off effect and cost dissemination) — Extensive IT support

Source: IRU study Krausz P. 2015, Economic Benefits of TIR: UNESCAP Focus

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The 2015 IRU study by Krausz quantified potential economic benefits of using TIR in 9 selected

UNESCAP countries (Cambodia, India, Indonesia, Japan, Lao PDR, Myanmar, Republic of

Korea, Thailand and Viet Nam) basing on the volume (weight) of traded goods expressed in the

number of 20-tonne load units and estimated over the period 2014-20186. The study estimated

that the potential economic benefit of implementing TIR is between 0.14% and 1.31% of

national GDP. This shows that there are significant potential monetary savings in implementing

the TIR Convention and that the nine countries examined should either seriously consider the

practical implementation of the TIR Convention or undertake the necessary diplomatic steps for

TIR accession.


As of 24 March 2016, the TIR Convention has been ratified by 69 countries. The TIR

Convention is widely adhered to in continental Europe, but it is applicable to all countries in the

world. However, it is not fully adhered to in regions with landlocked developing countries

because not all countries have acceded to the convention. The summary status of ratification of

the TIR convention is presented in table 2 below.

Customs Convention on the International Transport of Goods under Cover of the TIR Carnets (1975)






Source: United Nations Office of Legal Affairs Treaty Section

Although many African countries have not acceded to the TIR Convention, they have

incorporated its basic principles in their regional economic community agreements, such as the

Inter-State Road Transit of Goods (ISRT) under the Treaty of Economic community of West

African States (ECOWAS). However, there is need for effective implementation.

How to become a party to the Convention?

The country has to:

Accept the Convention in accordance with national legal procedures (i.e. publication in

the national public law journal) and modification, if need be, of national laws, regulations

and administrative instructions in line with the provisions of the Convention;

Deposit of an instrument of accession at the Treaty Section of the Office for Legal

Affairs of the United Nations in New York (depositary)

Url: http://legal.un.org/ola/div_treaty.aspx?section=treaty.

6 Krausz P. 2015, Economic Benefits of TIR: UNESCAP Focus, Study mandated by the International

Road Transport Union (IRU), Geneva.

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3. International Convention on the Harmonization of Frontier Controls of Goods (1982)

(United Nations Convention7)

Enormous delays in transit trade can be avoided if each country stops applying its own

procedures, but takes on board procedures applied elsewhere. The International Convention on

the Harmonization of Frontier Controls of Goods, 1982, seeks to harmonize and simplify

international frontier controls. The Convention aims at a reduction in the requirements for

completing formalities and a reduction in the number and duration of all types of controls, be it

for health reasons or for quality inspections, and applies to all goods being imported, exported or

in transit. In substance, the Convention covers the following control services at border crossing

points: - Customs procedures and other controls, - Medico-sanitary inspection - Veterinary

inspection, - Phytosanitary inspection, - Control of compliance with technical standards, -

Quality control measures. It also provides guidelines to countries to improve their internal inter-

departmental coordination to ensure that all the necessary controls can be done expeditiously.

Finally, it encourages cooperation and collaboration of public and private stakeholders of both

sides of the border to address the issues and the problem they encounter with a view to finding

appropriate responses.


Advantages for border control authorities and the national economy include: the harmonization

of border controls at the national level; facilitation of control procedures for goods upon import,

export and in transit and can thus contribute to a better use of scarce manpower and technical

resources at border stations. The Convention provides a framework for national authorities to

cooperate among themselves towards this end. The Convention also calls on Governments to

provide sufficient and qualified personnel as well as adequate equipment and infrastructure to

improve administrative and control procedures at border stations. The Convention also

recommends basic principles to align border crossing procedures among neighbouring countries

and adjacent border crossing points. The Convention thus provides the basis for the conclusion

of bilateral agreements on concrete measures. These measures can contribute to a better flow of

goods in international transport to the benefit of the national economy.

Advantages for the transport industry include: the speed up of the crossing of frontiers by

transport vehicles and reduced waiting time due to nonaligned opening hours as a result of

improved cooperation among the various national border control services as well as improved

coordination of border crossing procedures at adjacent border crossing points. Apart from

customs procedures, a number of other regulations falling within the competence of various

national administrations are emerging more and more often. Examples of such regulations are:

medico-sanitary, veterinary, phytosanitary inspections, controls of compliance with technical

standards and quality controls in general. The cooperation of the various control and inspection

services involved and the abolition of not essential procedures, particularly for transit traffic,

could facilitate international transport considerably.


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As of 24 March 2016, 57 countries are Contracting Parties to the International Convention on the

Harmonization of Frontier Controls of Goods, 1982.

International Convention on the Harmonization of Frontier Controls of Goods (1982)







How to become a party to the Convention

The country has to:







Synergies between WTO TFA, TIR Convention and Harmonization Convention

The TFA is an all-encompassing agreement that is largely based on well-established principles,

requiring a holistic approach for full implementation. Against this background, the TIR

Convention, the Harmonization Convention provide "ready to use" tools that are in line with the

principles and objectives of the TFA and can, thus, be used as mediums toward TFA

implementation.

4. Customs Convention on Containers, 1972 (United Nations Convention8)

The Customs Convention on Containers 1972 replaced the Customs Convention on Containers of

1956. It is widely adhered to in Europe, facilitating the use of containers by granting temporary

admission without the production of customs documents being required on their importation and

re-exportation and without furnishing of a form of security. Although there are provisos that can

be invoked to safeguard the right of Contracting Parties to impose restrictions in appropriate

cases, the right of temporary admission, coupled with undertakings that containers approved by a

Contracting Party for transportation of goods under customs seal should be accepted by other

Contracting Parties, as well as the security against pilferage and damage to goods inherent in the

use of containers make them particularly suitable for transit traffic operation.


Advantages of the convention for customs authorities and the national economy include the fact

that customs authorities can avoid the organization of national documentary systems, if they so

wish, and the administration of national guarantee systems. However, customs authorities retain

the right, under certain circumstances, to require the furnishing of a form of security and/or the

production of customs documents. In case control measures are to be carried out, customs


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authorities can request to check the records kept by container operators or their representatives in

the country as regards all container movements. Thus, the Convention provides customs

authorities with a flexible instrument to reduce administrative work while at the same time,

safeguarding customs control.

Advantages of the Convention for the transport industry include the fact that it allows for the

temporary importation of containers into a country without payment or the deposit of duties and

taxes and, in principle, without the production of customs documents. As the Convention also

provides for the possibility to use temporarily imported containers at least once for internal

traffic before re-exportation, container transport operators not only can avoid the deposit of large

sums of security upon importation and avoid delays in border crossing procedures, but can also

react in a flexible manner to emerging transport needs.

The Customs Convention on Containers requires that containers admitted temporarily into the

territory of one of the Contracting Parties must be re-exported within three months – this period

can be extended – and in an unaltered state and cannot be substituted by another or similar

container. The Convention also imposes restrictions as to the use of temporarily imported

containers in internal traffic. It is required that the journey in a country of temporary importation

shall bring the container by a reasonably direct route to, or nearer to, the place where export

cargo is to be loaded or from where the container is to be exported empty. It is also required that

the container is used only once in internal traffic before being re-exported.


As of 24 March 2016, 39 countries are Contracting Parties to the Customs Convention on

Containers 1972.

Status of ratification of Customs Convention on Containers (1972)








The country has to:







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5. United Nations Convention on the Law of the Sea (1982) (United Nations Convention9)

The United Nations Convention on the Law of the Sea, commonly referred to as “UNCLOS”

was first signed in December 1982 and came into force in November 1994; one year after the

60th nation had ratified or acceded to the treaty. UNCLOS is one of the largest, and likely one of

the most important legal agreements in history. The Treaty addresses several issues, including

navigation rights of ships and aircrafts, limits on the extension of national sovereignty over the

oceans, environmental protection of the oceans, conservation of living resources and mining

rights. The multiple uses of the sea are also of considerable interest to landlocked developing

countries: as they do not have access to the sea, they need transit across the territory of other

countries in order to be able to benefit from maritime uses. The lack of a coast of their own

further deprives them of exclusive rights with respect to maritime areas. The United Nations

Convention on the Law of the Sea of 1982 represents a major step forward in this respect by

reaffirming and in some ways also extending rights States.

Benefits of UNCLOS for LLDCs

The Preamble of the Convention recognizes the necessity to take into account the interests and

needs of mankind as a whole and, in particular, the special interests and needs of developing

countries, whether coastal or landlocked. Several UNCLOS articles refer to the LLDCs, in

particular, under the right of Innocent Passage (Art 17), Exclusive Economic Zones (EEZ) (Art

62, 69, 70), and High Sea (Art 87, 90). For instance, under article 62(2) costal states are to

determine their capacity to harvest the living resources of the EEZ and where they did not have

the capacity to harvest the entire allowable catch of a fishery, they are to give other states access

to the surplus, having particular regard to landlocked states. As for the freedom of the high seas,

article 87 states that the high seas are open to all States, whether coastal or landlocked and all

enjoyed exactly the same rights.

UNCLOS states that the Land-locked States shall have the right to participate, on an equitable

basis, in the exploitation of an appropriate part of the surplus of the living resources of the

exclusive economic zones of coastal States of the same subregion or region, taking into account

the relevant economic and geographical circumstances of all the States concerned and in

conformity with the provisions of this article and of articles 61 and 62.

Article 125 provides for rights of transit across the territory of neighbouring States so as to

obtain access to the sea. While the provision used mandatory language in relation to access and

transit rights, its effect is that landlocked States do not have a self-executing right to access.

Instead, transit states are under an obligation to engage in good faith negotiation to facilitate

access for landlocked states. Therefore, the Convention makes the right of access contingent

upon bilateral, sub-regional or regional agreements between the landlocked States and transit

States, laying down the terms and modalities for exercising freedom of transit. Transit countries

have the right to define their legitimate interests, therefore making it difficult to LLDCs to

exercise the right of transit.

9 Secretariat of the Convention is the United Nations Division of Ocean Affairs and the Law of

the Sea (DOALOS)

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As of 24 March 2016, 167 countries are Contracting Parties to the United Nations Convention on

the Law of the Sea.

Status of Ratification of the United Nations Convention on the Law of the Sea (1982)




Total number of Countries in the Region 54 55 33 48 4


Source: United Nations Office of Legal Affairs

It is necessary that LLDCs be party to the UNCLOS Convention and become more proactive in

implementing and taking advantage of the UNCLOS provisions, especially in Part XI and

including by pushing for landlocked issues to feature on the agenda of the annual meetings.


The country has to:







The United Nations Division of Ocean Affairs and the Law of the Sea (DOALOS) has expressed

its willingness to support LLDCs for information sharing, and, if need be, prepare a working

paper on landlocked and geographically disadvantaged States, followed by sensitization seminars.

6. International Convention on the Simplification and Harmonization of Customs

Procedures (1999) (The Revised Kyoto Convention) (World Customs Organization)

The Revised Kyoto Convention (RKC) is an international agreement that provides a set of

comprehensive Customs procedures to facilitate legitimate international trade while effecting

Customs controls including the protection of Customs revenue and society. It deals with key

principles of simplified and harmonized Customs procedures, such as transparency and

predictability of Customs actions, standardization and simplification of the goods declaration and

supporting documents, simplified procedures for authorized persons, maximum use of

information technology, coordinated interventions with other border agencies, minimum

necessary Customs control to ensure compliance with regulations, and modern Customs

techniques (e.g. risk management, pre-arrival information, and post-clearance audit). The RKC

was adopted in 1999 and entered into force in February 2006.

The revised Kyoto Convention promotes trade facilitation and effective controls through its legal

provisions that detail the application of simple yet efficient procedures. The revised Convention

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also contains new and obligatory rules for its application which all Contracting Parties must

accept without reservation.


A WCO paper: Benefits of the Revised Kyoto Convention10 highlights that the tangible benefits

of implementing specific RKC measures include: faster release of goods, lower trade costs,

increased revenue, more FDI and economic competitiveness, various non-economic benefits, and

a basis for implementing other Customs instruments and tools.


As of 24 March 2016, 103 countries are Contracting Parties to the Revised Kyoto Convention.

Status of Ratification of the International Convention on the Simplification and

Harmonization of Customs Procedure (1999) - The Revised Kyoto Convention






Source: WCO


By depositing the country’s instrument of accession to the International Convention on the

Simplification and Harmonization of Customs Procedures (Revised Kyoto Convention - RKC) to

the World Customs Organization.

D. Recommendations for Nurturing Effective Implementation of Important

International Conventions and Agreements on transit transport and trade

facilitation

More needs to be done to encourage accession of Member States to the key international

conventions. A study undertaken by ESCAP to examine issues relating to participation in

international conventions in the region found that some countries had concerns with respect to:

the cost of adjustment to meet the requirements of conventions; difficulties in implementation;

lack of involvement in elaboration and amendment of conventions; and inadequate national

capacity (ESCAP, 201311). ECA undertook a study on the implementation of legal instruments

10 http://www.wcoomd.org/en/topics/facilitation/instrument-and-

tools/conventions/~/media/WCO/Public/Global/PDF/Topics/Facilitation/Instruments%20and%20Tools/Conventions

/Kyoto%20Convention/BenefitsRKC.ashx 11 ESCAP, 2013, Discussion Paper on Harmonization and Strengthening of the Regulatory and Legal Framework

Pertaining to International Transport and Transit; Presented at the ESCAP/OHRLLS/ECE/Government of Lao PDR

Final Regional Review of the Almaty Programme of Action for the Landlocked Developing Countries held 5-7

March 2013 in Vientiane, Lao People’s Democratic Republic.

16

on the African continent (ECA, 2013 12 ). The study noted that African countries were

implementing trade and transport legal instruments at varying degrees through several regional,

national and bilateral efforts and although several agreements had been reached, the key

challenge was varied effective implementation, due to economic, political and geographical

constraints. The study noted that ratification of key international conventions such as the TIR

Convention was not as high as in the other regions.

In 2015, OHRLLS undertook regional studies and prepared regional reports for Latin America,

Euro-Asia and Africa and a synthesized global report which were presented and discussed in an

Expert Group Meeting on Improving Transit Cooperation, Trade and Trade Facilitation for the

Benefit of the LLDCs held in December 2015. The discussions in the meeting noted that

ratification of the relevant legal instruments on transport and trade facilitation by member states

was low and implementation was not fully effective. The major challenges faced by countries

that were identified include: lack of awareness about the legal instruments and the potential

benefits from ratification; lack of capacity; weak enforcement mechanisms; high turnover of

experts and regulatory staff; and others. The meeting stressed that full implementation of the

legal instruments can generate substantial revenue for governments and for the private sector,

and simultaneously create the conditions to advance national and regional efforts toward

achievement of the SDGs and the 2030 Sustainable Development Agenda.

As way forward the following recommendations are proposed

To ensure full implementation, national governments must evaluate the suitability,

adaptability and process of becoming party to international legal instruments and identify

the duration and changes necessary to be in full compliance. In this regard in depth

studies and analyses encompassing the costs and benefits of joining the conventions are

needed to obtain greater insights. Based on these studies, clear strategic options and

recommendations should be formulated which can then feed into developing robust and

effective advocacy tools.

Guidelines could also be developed for use in implementing the conventions and

agreements.

Once ratified or acceded and made applicable by law in the member states, these legal

instruments must be properly documented and disseminated to the general public who are

the consumers of trade and transport instruments. Mainstreaming of the conventions and

other regional agreements at the national level is important as it will allow their

incorporation in national plans and budgetary allocations.

International organizations including the United Nations Organizations, the IRU, World

Bank, WTO, WCO and others should provide capacity building to promote greater

awareness and understanding of the implications of accession to the international

conventions by policymakers and also provide training sessions and workshops of

relevant officials on the importance of the conventions. It is important that Governments

present their requests for technical support to these institutions.

12 ECA, 2013, Report on the Implementation of Trade and Transport Legal Instruments in Africa, Presented at the

Experts Group Meeting (EGM) on assessing the status of implementation of trade and transport facilitation

instruments and measures in Africa, on 15 July 2013 in Addis Ababa, Ethiopia.

17

Finally, Member States are encouraged to participate in the 2016 Treaty Event that will

be led by the UN Office of Legal Affairs and held in New York in the sidelines of the

71st Session of the General Assembly from 20 to 23 September 2016.

18

Annex 1. Status of Ratification of International Conventions by African Countries

Convention # Category Names of Countries

World Trade Organization

Trade Facilitation Agreement

(2013)

12

LLDCs Botswana, Lesotho, Mali, Niger, Zambia (5)

Africa Transit Cote d’Ivoire, Kenya, Togo (3)

Africa Egypt, Madagascar, Sierra Leone, Tunisia (4)

International Convention on

the Simplification and

Harmonization of Customs

Procedures (1999) (the

Revised Kyoto Convention)

28

LLDCs Botswana, Lesotho, Malawi, Mali, Niger, Rwanda, Swaziland,

Uganda, Zambia, Zimbabwe (10)

Africa Transit

Algeria, Cameroon, Cote d’Ivoire, Democratic Republic of Congo,

Kenya, Mozambique, Namibia, Nigeria, Senegal, South Africa, Togo

(11)

Africa Egypt, Gabon, Madagascar, Mauritius, Morocco, Sierra Leone, Sudan

(7)

United Nations Convention

on the Law of the Sea (1982) 49

LLDCs

Botswana, Burkina Faso, Burundi*, Central African Republic*, Chad,

Ethiopia*, Lesotho, Malawi, Mali, Niger, Rwanda*, Swaziland,

Uganda, Zambia, Zimbabwe (15)

Africa Transit

Algeria, Angola, Benin, Cameroon, Democratic Republic of the

Congo, Djibouti, Ghana, Guinea, Côte d'Ivoire, Kenya, Mozambique,

Namibia, Nigeria, Senegal, Somalia, South Africa, Togo (17)

Africa

Cabo Verde, Egypt, Equatorial Guinea, Gabon, Gambia, Guinea-

Bissau, Liberia, Libya*, Madagascar, Mauritania, Mauritius, Morocco,

Sao Tome and Principe, Seychelles, Sierra Leone, Sudan, Tunisia (17)


the Harmonization of

Frontier Controls of Goods

(1982)

4

LLDCs

Africa Transit South Africa (1)

Africa Liberia, Morocco, Tunisia (3)

Customs Convention on the

International Transport of

Goods under Cover of the

TIR Carnets (1975)

4

LLDCs

Africa Transit Algeria (1)


Customs Convention on

Containers (1972) 5

LLDCs Burundi (1)



Convention on Road Signs

and Signals (1968) 10

LLDCs Central African Republic (1)

Africa Transit Côte d'Ivoire, Democratic Republic of the Congo, Ghana*, Nigeria,

Senegal (5)

Africa Liberia, Morocco, Seychelles, Tunisia (4)

Vienna convention on Road

Traffic (1968) 14

LLDCs Central African Republic, Chad, Niger, Zimbabwe (4)

Africa Transit Côte d'Ivoire, Democratic Republic of Congo, Ghana*, Kenya,

Senegal, South Africa (6)

Africa Liberia, Morocco, Seychelles, Tunisia (4)

Convention on the Contract

for the International Carriage

of Goods by Road (1956)

2

LLDCs

Africa Transit

Africa Morocco, Tunisia (2)

Customs convention on the

Temporary Importation of

Commercial Road Vehicles

(1956)

2

LLDCs


Africa Sierra Leone (1)

Geneva Convention on Road

Traffic (1949) 24

LLDCs Botswana, Burkina Faso, Central African Republic, Lesotho, Malawi,

Mali, Niger, Rwanda, Uganda, Zimbabwe (10)

Africa Transit Algeria, Benin, Côte d'Ivoire, Democratic Republic of Congo, Ghana,

Namibia, Nigeria, Senegal, South Africa, Togo (10)

Africa Egypt, Madagascar, Sierra Leone, Tunisia (4)

*Only Signature Source: UN OLA Treaty Section, UNECE, WCO, WTO

19

Annex 2. Status of Ratification of International Conventions by Asian-Pacific Countries



Trade Facilitation Agreement

(2013)

15

LLDCs Lao PDR (1)

Asia

Cambodia, China, Chinese Taipei, Cyprus, Democratic People’s Republic

of Korea, Hong Kong China, Japan, Malaysia, Myanmar, Pakistan,

Republic of Korea, Singapore, Thailand, Viet Nam (14)






26

LLDCs Bhutan, Kazakhstan, Mongolia (3)

Asia

Bahrain, Bangladesh, Cambodia, China, Cyprus, Fiji, India, Indonesia,

Iran, Japan, Jordan, Malaysia, Oman, Pakistan, Papua New Guinea,

Philippines, Qatar, Republic of Korea, Saudi Arabia, Sri Lanka, United

Arab Emirates, Vietnam, Yemen (23)

United Nations Convention on

the Law of the Sea (1982) 48

LLDCs Afghanistan*, Bhutan*, Lao PDR, Mongolia, Nepal (5)

Asia

Bahrain, Bangladesh, Brunei Darussalam, Cambodia*, China, Cyprus,

Democratic People's Republic of Korea*, Fiji, India, Indonesia, Iran*,

Iraq, Japan, Jordan, Kiribati, Kuwait, Lebanon, Malaysia, Maldives,

Marshall Islands, Micronesia, Myanmar, Nauru, Oman, Pakistan, Palau,

Papua New Guinea, Philippines, Qatar, Republic of Korea, Samoa, Saudi

Arabia, Singapore, Solomon Islands, Sri Lanka, Thailand, Timor-Leste,

Tonga, Tuvalu, United Arab Emirates*, Vanuatu, Viet Nam, Yemen (43)


the Harmonization of Frontier

Controls of Goods (1982)

9 LLDCs Kazakhstan, Kyrgyzstan, Lao PDR, Mongolia, Tajikistan, Uzbekistan (6)

Asia Cyprus, Iran, Jordan (3)



Goods under Cover of the TIR

Carnets (1975)

17

LLDCs Afghanistan, Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan,

Turkmenistan, Uzbekistan (7)

Asia Cyprus, Indonesia, Iran, Jordan, Kuwait, Lebanon, Pakistan, Republic of

Korea, Syrian Arab Republic, United Arab Emirates (10)


Containers (1972) 8

LLDCs Kazakhstan, Kyrgyzstan, Uzbekistan (3)

Asia China, Indonesia, Lebanon, Republic of Korea, Saudi Arabia (5)



LLDCs Kazakhstan, Kyrgyzstan, Mongolia, Tajikistan, Turkmenistan, Uzbekistan

(6)

Asia Bahrain, India, Indonesia*, Iran, Iraq, Kuwait, Pakistan, Philippines,

Republic of Korea*, Thailand, United Arab Emirates, Viet Nam (12)


Traffic (1968) 17


(6)

Asia Bahrain, Indonesia*, Iran, Kuwait, Pakistan, Philippines, Qatar, Republic

of Korea*, Thailand*, United Arab Emirates, Viet Nam (11)




11


(6)

Asia Cyprus, Iran, Jordan, Lebanon, Syrian Arab Republic (5)




(1956)

7

LLDCs Afghanistan, Kyrgyzstan, Uzbekistan (3)

Asia Cambodia, Cyprus, Saudi Arabia, Singapore (4)


Traffic (1949) 20

LLDCs Kyrgyzstan, Lao PDR (2)

Asia

Bangladesh, Cambodia, Cyprus, Fiji, India, Japan, Jordan, Lebanon,

Malaysia, Papua New Guinea, Philippines, Republic of Korea, Singapore,

Sri Lanka, Syrian Arab Republic, Thailand, United Arab Emirates, Viet

Nam (18)


20

Annex 3. Status of Ratification of International Conventions by Latin American and Caribbean Countries



Trade Facilitation

Agreement (2013)

9

LLDCs Paraguay (1)

Latin America Belize, Grenada, Guyana, Jamaica, Nicaragua, Panama, Saint Lucia,

Trinidad and Tobago (8)






3

LLDCs

Latin America Argentina, Cuba, Dominican Republic (3)



LLDCs Bolivia, Paraguay (2)

Latin America

Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Brazil,

Chile, Colombia*, Costa Rica, Cuba, Dominica, Dominican

Republic, Ecuador, El Salvador*, Grenada, Guatemala, Guyana,

Haiti, Honduras, Jamaica, Mexico, Nicaragua, Panama, St. Kitts and

Nevis, St. Lucia, St. Vincent and the Grenadines, Suriname, Trinidad

and Tobago, Uruguay (29)




(1982)

1

LLDCs

Latin America Cuba (1)




TIR Carnets (1975)

2

LLDCs

Latin America Chile, Uruguay (2)


Containers (1972) 2

LLDCs

Latin America Cuba, Trinidad and Tobago (2)



LLDCs

Latin America Brazil*, Chile, Costa Rica*, Cuba, Ecuador*, Guyana, Mexico*, Venezuela* (8)


Traffic (1968) 11

LLDCs

Asia Bahamas, Brazil, Chile*, Costa Rica*, Cuba, Ecuador*, Guyana, Mexico*, Peru, Uruguay, Venezuela* (11)




0 LLDCs

Latin America




(1956)

1

LLDCs

Latin America Cuba (1)


Traffic (1949) 12

LLDCs Paraguay (1)

Latin America Argentina, Barbados, Chile, Cuba, Ecuador, Guatemala, Haiti, Jamaica, Peru, Trinidad and Tobago, Venezuela (11)


21

Annex 4. Status of Ratification of International Conventions by European Countries



Trade Facilitation

Agreement (2013)

32

LLDCs The Former Yugoslav Republic of Macedonia (1)

Europe

Belgium, Bulgaria, Croatia, Czech Republic, Denmark, Estonia, Finland,

France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Latvia,

Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway,

Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden,

Switzerland, Ukraine, United Kingdom (31)






42

LLDCs Armenia, Azerbaijan, The Former Yugoslav Republic of Macedonia (4)

Europe

Albania, Austria, Belarus, Belgium, Bulgaria, Croatia, Czech Republic,

Denmark, Estonia, European Union, Finland, France, Germany, Greece,

Hungary, Iceland, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta,

Montenegro, Netherlands, Norway, Poland, Portugal, Romania, Russian

Federation, Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland,

Turkey, Ukraine, United Kingdom (38)



LLDCs Armenia, Republic of Moldova, The former Yugoslav Republic of

Macedonia (3)

Europe

Albania, Austria, Belarus, Belgium, Bosnia and Herzegovina, Bulgaria,

Croatia, Czech Republic, Denmark, Estonia, Finland, France, Georgia,

Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia,

Liechtenstein*, Lithuania, Luxembourg, Malta, Monaco, Montenegro,

Netherlands, Norway, Poland, Portugal, Romania, Russian Federation,

Serbia, Slovakia, Slovenia, Spain, Sweden, Switzerland, Ukraine, United

Kingdom (40)




(1982)

43

LLDCs Armenia, Azerbaijan, Republic of Moldova, The Former Yugoslav

Republic of Macedonia (4)

Europe


Croatia, Czech Republic, Denmark, Estonia, European Union, Finland,

France, Georgia, Germany, Greece, Hungary, Ireland, Italy, Latvia,

Lithuania, Luxembourg, Montenegro, Netherlands, Norway, Poland,

Portugal, Romania, Russian Federation, Serbia, Slovakia, Slovenia,

Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom (39)




TIR Carnets (1975)

44



Europe


Croatia, Czech Republic, Denmark, Estonia, European Union, Finland,

France, Georgia, Germany, Greece, Hungary, Ireland, Israel, Italy,

Latvia, Lithuania, Luxembourg, Malta, Montenegro, Netherlands,

Norway, Poland, Portugal, Romania, Russian Federation, Serbia,

Slovakia, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United

Kingdom (40)


Containers (1972) 20

LLDCs Armenia, Azerbaijan (2)

Europe

Austria, Belarus, Bulgaria, Czech Republic, Finland, Georgia,

Hungary, Lithuania, Montenegro, Poland, Romania, Russian Federation,

Serbia, Slovakia, Spain, Switzerland, Turkey, Ukraine (19)



LLDCs Azerbaijan, Republic of Moldova, The Former Yugoslav Republic of

Macedonia (3)

Europe



Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Lithuania,

Luxembourg, Montenegro, Netherlands, Norway, Poland, Portugal,

Romania, Russian Federation, San Marino, Serbia, Slovakia, Slovenia,

Spain*, Sweden, Switzerland, Ukraine, United Kingdom* (38)

22


Traffic (1968) 44



Europe



Germany, Greece, Hungary, Iceland, Israel, Italy, Latvia, Lithuania,

Luxembourg, Monaco, Montenegro, Netherlands, Norway, Poland,

Portugal, Romania, Russian Federation, San Marino, Serbia, Slovakia,

Slovenia, Spain*, Sweden, Switzerland, Turkey, Ukraine, United

Kingdom* (40)




42



Europe



Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania,

Luxembourg, Malta, Montenegro, Netherlands, Norway, Poland,

Portugal, Romania, Russian Federation, Serbia, Slovakia, Slovenia,

Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom (38)




(1956)

31

LLDCs Azerbaijan, Republic of Moldova, The Former Yugoslav Republic of

Macedonia (3)

Europe

Austria, Belgium, Bosnia and Herzegovina, Bulgaria, Croatia, Denmark,

Finland, France, Germany, Greece, Hungary, Ireland, Italy, Lithuania,

Luxembourg, Montenegro, Netherlands, Norway, Poland, Portugal,

Romania, Serbia, Slovenia, Spain, Sweden, Switzerland, Turkey, United

Kingdom (28)


Traffic (1949) 33

LLDCs

Europe

Albania, Austria, Belgium, Bulgaria, Czech Republic, Denmark, Finland,

France, Georgia, Greece, Hungary, Iceland, Ireland, Israel, Italy,

Luxembourg, Malta, Monaco, Montenegro, Netherlands, Norway, Poland,

Portugal, Romania, Russian Federation, San Marino, Serbia, Slovakia,

Spain, Sweden, Switzerland*, Turkey, United Kingdom (33)


23

Annex 5. Status of Ratification of International Conventions by Other Countries

Convention # Names of Countries

World Trade Organization Trade

Facilitation Agreement (2013) 3 Australia, New Zealand, United States of America

International Convention on the

Simplification and Harmonization

of Customs Procedures (1999)

(the Revised Kyoto Convention)

4 Australia, Canada, New Zealand, United States of America

United Nations Convention on the

Law of the Sea (1982) 3 Australia, Canada, New Zealand


Harmonization of Frontier


0


International Transport of Goods

under Cover of the TIR Carnets

(1975)

2 Canada, United States of America


Containers (1972) 4 Australia, Canada, New Zealand, United States of America

Convention on Road Signs and

Signals (1968) 0


Traffic (1968) 0

Convention on the Contract for

the International Carriage of

Goods by Road (1956)

0




(1956)

0


Traffic (1949) 4 Australia, Canada, New Zealand, United States of America

Source: UN OLA Treaty Section, UNECE, WCO, WTO

24

Annex 6. Summary Status of Ratification of International Conventions

Convention Africa Asia-Pacific Latin America

and Caribbean Europe Other Total

World Trade Organization Trade

Facilitation Agreement (2013) 12 15 9 32 3 71


Simplification and Harmonization

of Customs Procedures (1999) (the


28 26 3 42 4 103

United Nations Convention on the

Law of the Sea (1982) 49 48 31 43 3 174


Harmonization of Frontier


4 9 1 43 0 57


International Transport of Goods

under Cover of the TIR Carnets

(1975)

4 17 2 44 2 69


Containers (1972) 5 8 2 20 4 39

Convention on Road Signs and

Signals (1968) 10 18 8 41 0 77


Traffic (1968) 14 17 11 44 0 86

Convention on the Contract for the

International Carriage of Goods by

Road (1956)

2 11 0 42 0 55



Commercial Road Vehicles (1956)

2 7 1 31 0 41


Traffic (1949) 24 20 12 33 4 93

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