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United Nations Conference on Trade and Development - Institute for ...

United Nations Conference on Trade and Development - Institute for ...

Rutgers Model

Rutgers Model ong>Unitedong> ong>Nationsong> 2006 13 Authority, “when goods come from Kenya to Uganda, they are checked from the Kenyan side, and when they cross the bridge, Uganda’s customs officers recheck them. This is time consuming and at times, goods spend days at the borders.” 32 The investment made by the two banks should help alleviate the problem by establishing systems that would allow for the inspection of parcels on just one side of the border. An important problem with regard to transit trade is the ability to bypass the standards and regulations imposed by third party nations on traders. For example, transit trade abuse is so prevalent in Ghana that companies use preventative measures to circumvent draconian customs procedures. Importers sidestep regulations by “consigning goods to known foreign names in Niger, Mali and Burkina Faso while others used forged transit stickers and attempt to smuggle goods out of the ports, thereby, avoiding scanning [by customs officials].” 33 These efforts have led to a decrease in state revenue produced by transit trade, and as a result, the Ghanaian Customs, Excise and Preventative Services (CEPS) has required evidence “certificate of title, certificate of origin, certificate of retail sales and a sill of sales” before goods can leave port facilities. 34 These measures should ideally resolve the transit abuse in African areas, as they require goods to be accurately declared as they progress along their way. Other proposals to resolve transit abuse include the implementation of a tracking and monitoring system on the cargo. Asia Trade agreements are common among nations throughout Asia. Specifically, a multilateral agreement between Russia, Mongolia, and China strengthens the relationship in trade facilitation, and seeks to “provide a favorable arrangement for facilitating traffic transit through the territories of the states.” 35 As Mongolia has historically been a disputed area between China and Russia, customs agents in these areas hold up goods emanating from that state for significant periods as a means to negatively affect the 32 “World Bank, ADB Offer $209 Million for Transport.” Africa News. March 31, 2006. Lexis Nexis 33 Korantemaa, Gifty. “The Abuse of Transit Trade.” Ghanaian Chronicle. October 27, 2005. 34 Ibid. 35 “Draft Transit Agreement Between the Governments of the People’s Republic of China, Mongolia, and the Russian Federation.” 16 Feb 2005.

Rutgers Model ong>Unitedong> ong>Nationsong> 2006 14 economy of the landlocked country. These efforts have sought to force Mongolian companies to rely upon the Chinese and Russian governments to participate in the global marketplace. Seeking to reduce smuggling in Pakistan, the government has sought to reduce the abuse of transit trade. Afghan traders smuggle in hundreds of billions of dollars worth of goods each year by establishing markets in the tribal areas of Pakistan. This is a quite difficult process because of the social structure of the nation. As tribal leaders control much of the rural region of Pakistan, the central government has little ability to enforce laws in these regions, and these local dominions have “little interest in cracking down on a trade that brings prosperity to their domains.” 36 This inability by the government to effectively regulate trade decreases government revenue by almost $100 billion per year. Although the government realizes the problem, meaningful reform will likely be impossible without the support of these regional leaders. 37 Europe Although there are land-locked European nations, Western European states are considered developed states. Some nations in Eastern Europe, however, fall under the LLDC classification, and are being encouraged to model their trading practices after their western neighbors. The Trade and Transport Facilitation in Southeast Europe (TTFSE) program cultivates trade by “promoting more efficient and less costly trade flows across the countries in Southeast Europe and provides European Unioncompatible customs standards.” 38 Perhaps more importantly, the TTFSE program aligns trade and border regulations with those of Participants in TTFSE Albania Bosnia and Herzegovina Bulgaria Croatia, FYR Macedonia Moldova Montenegro Romania Serbia the European Union, allowing these states to more smoothly join the EU when their economies develop enough to become active members in that organization. As with 36 “Smuggler’s Trail.” Economist, 4/8/95. Vol 335. 37 Ibid. 38 “Trade and Transport Facilities in Southeast Europe Program,”, (Accessed 20 April 2006).

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