31 August 2007, Ulaanbaatar 

Landlocked developing countries have drafted an outline for a unified approach in coming international trade negotiations, to make their special case heard and to improve market access for the most marginalized economies in the world.

An outcome statement for four-day discussions by landlocked countries’ representatives in Ulaanbaatar, issued on Friday, also included calls for the international donors and agencies for more assistance to the landlocked developing countries.

It also urged the accession of all landlocked developing countries to the World Trade Organization (WTO). Of the 31 landlocked developing countries, only 22 were members of the WTO.

As the essential step to a successful conclusion of the Doha Development Round, WTO members of landlocked developing countries said they should “engage in constructive manner” in the process, to agree to full modalities in agricultural and non-agricultural market access negotiations.

“The special needs of landlocked developing countries should be taken into account, including export products of particular interest to the landlocked developing countries and through less than full reciprocity in the reduction of commitments,” the statement said.

“Special and differential treatment should be sought in all relevant negotiating areas, to ensure that landlocked countries benefit from greater flexibility to pursue those policy options that are most appropriate to accelerate their integration into the multilateral trading system,” it said.

Landlocked developing countries’ trade accounts less than one percent of the global trade, mainly because of high transport costs, poor infrastructure, and non-physical barriers for trade, such as dependence on neighbouring transit countries’ political will, extensive bureaucracy by customs, poor access to markets, and other problems in trade facilitation.

“The ongoing WTO negotiations on trade facilitation, if translated into an ambitious set of provisions as final outcome, could yield enormous benefits for both landlocked and transit developing countries, in terms of reducing the non-physical constraints to trade while decreasing the cost of time of commercial transactions,” the statement said.

The document singled out specific articles of GATT 1994 to be clarified and improved to better serve the landlocked developing countries’ special needs. Articles V on freedom of transit, article VIII on fees and formalities connected with imports and exports procedures, and article X on publication and administration of trade regulations, were especially targeted.

Esperanza Duran, executive director of the Agency for International Trade Information and Cooperation (AITIC) urged the landlocked developing countries to be active and united in their position at the Doha negotiations, with a particular focus on agriculture and non-agricultural market access, Aid for Trade and the accession of landlocked countries to the WTO.

Negotiations related with the Doha Round, were scheduled to start in Geneva next week, with discussions on draft modalities circulated by the chairpersons of the agriculture and non-agricultural market access negotiating groups, she said.

“The landlocked developing countries should seize this opportunity to continue to press their interests as agreed in the Ulaanbaatar Declaration,” Duran said.

Trade ministers and representatives of landlocked countries issued a unified statement, the ‘Ulaanbaatar Declaration’ on Wednesday, which states their position and guidelines for their action to improve trade and market access of the landlocked developing countries.

While some progress had been made on making the case in some crucial areas for the landlocked developing countries – such as related with agriculture, especially cotton related issues, and market access – stress should now be placed on further liberalization of trade in tropical products and securing assistance to diversify exports of the landlocked developing countries.

“In market access for non-agricultural products, less than full reciprocity in tariff reduction, and addressing reduction of tariff escalation and elimination of non-tariff barriers remain areas where developing countries…have not seen their expectations fulfilled,” Duran said.

“The opportunity is open for taking up the landlocked developing countries’ case when negotiations on non-agricultural market access resume next week,” she said.

Most landlocked developing countries are located in Africa and Asia, and few in Latin America and Europe.