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the challenges facing landlocked developing countries: a case study ...

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license or permit. 11 Ano<strong>the</strong>r interesting scheme is <strong>the</strong> COMESA Yellow Card, which<br />

guarantees third party insurance across signatory states, removing <strong>the</strong> need to purchase<br />

insurance at each border crossing, and thus providing significant cost savings. A Yellow<br />

Card for a truck between Harare and Nairobi, for example, costs about $70 per year. In <strong>the</strong><br />

absence of <strong>the</strong> card, insurance would cost $350 (Mulenga 1998). Similar efforts are being<br />

made in South America through <strong>the</strong> regional trade institutions to simplify transit procedures.<br />

11 As at July 2001, <strong>the</strong> license was not yet in use in all COMESA <strong>countries</strong> because many country’s road<br />

industries had not yet been liberalised.<br />

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