Rutgers Model ong>Unitedong> ong>Nationsong> 2006 17 Summary Globalization has benefited countries throughout the world, however in the process, it has identified landlocked countries as most vulnerable to trade barriers. Since they are required to ship their goods through a neighboring state in order to have access to port facilities, these states are forced to rely upon established infrastructure networks, and the customs regulations of that country. These intermediary states have the ability to significant limit the access of these landlocked states to the global marketplace by implementing severe customs restrictions or significantly delaying goods at ports of call. Realization that these states need specific assistance, much of the global trading community has come together in a series of conferences, including those in Almaty, Kazakhstan and Asunción, Paraguay, to discuss strategies that can support the development of these states. While this increased dialogue is critical to the trade of the states affected by this problem, states need to be proactive to ensure that they have adequate access to the global trading system, lest they continue to have faltering economies, and limited potential for growth from trade. Before real progress can be achieved, landlocked states need to bring their customs regulations in line with the rest of the world so that coordinated growth can help nations throughout the world. When developed states actively cooperate with developing states, the latter are able to implement proven systems without undertaking the extensive costs that go into their development. The AYSCUDA system is an example of a strategy implemented in developing states that was effectively transitioned to developing states, reducing the time and expense necessary to process trade goods at border crossings. As more bordering states harmonize their customs regulations, global trade can become more effective, and the disadvantage of landlocked states can be transcended.
Rutgers Model ong>Unitedong> ong>Nationsong> 2006 18 Discussion Questions • What is the status of Transit trade in your state? With what other nations does your state have trade agreements? • Has ASYCUDA been implemented in the transit trade process of your nation, if so, how many ports and stations is it in use? • How significant are smuggling and other efforts to circumvent trade restrictions in your state? How much government revenue is lost due to this activity? How can this behavior be limited? • Does the ong>Unitedong> ong>Nationsong> define your state a Least Developed Country (LDC)? If so, what are primary impediments to economic growth? Can current economic systems alleviate these problems, or is further reform necessary? • How can your state reduce the costs associated with transiting barriers? Do your neighbors help or hurt your efforts at accessing the global marketplace? • Which partnerships or alliances regarding the development of trade is your state a member? How have these groups helped your state to develop? • How can small and medium sized enterprises (SMEs) influence the trade economy in your region? Which SMEs are dominant in your state? • Has the Integrated Framework (IF) been implemented in your state? Has it had a measurable impact?