Introduction: The Challenges of Landlocked Nations and WCO's Commitment
In the complex network of global trade, Landlocked Developing Countries (LLDCs) face unique challenges. Without direct access to coastlines, these nations depend on neighboring countries for import and export activities, resulting in increased transportation costs, longer delivery times, and greater vulnerability to geopolitical risks. The COVID-19 pandemic further exacerbated these challenges, disrupting global supply chains and severely impacting LLDCs' economies.
Facing these harsh realities, the World Customs Organization (WCO) stands firmly with LLDCs, committed to helping them overcome obstacles and achieve sustainable development through various initiatives and action frameworks. Recognizing the special needs of LLDCs, the WCO actively implements measures to simplify border procedures, promote trade facilitation, strengthen regional cooperation, and address the impacts of COVID-19.
Secretary General Mikuriya's Address at LLDCs Foreign Ministers Annual Meeting
On September 23, 2020, during the virtual Annual Meeting of Foreign Ministers of Landlocked Developing Countries, WCO Secretary General Kunio Mikuriya delivered a significant speech emphasizing the organization's steadfast support for LLDCs. This meeting marked an important milestone in the United Nations' roadmap for accelerated implementation of the Vienna Programme of Action, demonstrating international commitment to addressing LLDCs' development challenges.
In his address, Secretary General Mikuriya reaffirmed WCO's commitment to supporting LLDCs through:
- Developing simplified and standardized border procedures: The WCO works to establish and promote international customs standards that simplify and harmonize cross-border trade processes. These standards aim to reduce border delays, lower transaction costs, and improve trade efficiency - all crucial for LLDCs.
- Implementing capacity-building programs: Through various capacity-building initiatives, the WCO helps LLDCs enhance the efficiency and effectiveness of their customs administrations. These programs typically include training courses, technical assistance, and equipment provision, tailored to address LLDCs' specific development needs.
- Strengthening cooperation with development partners: The WCO actively collaborates with other international organizations and development partners to provide comprehensive support for LLDCs, ensuring coordinated efforts and integrated resources.
Secretary General Mikuriya emphasized that the disruptions caused by COVID-19 highlighted the critical importance of transit transport and the need to maintain smooth operation of trade corridors. He reminded attendees of the joint statement issued on May 29, 2020, by the UN Office of the High Representative for Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) and the WCO, calling for LLDCs and transit countries to maintain international and regional supply chain continuity during the pandemic.
UN's Accelerated Implementation Roadmap for Vienna Programme of Action
The United Nations' roadmap for accelerated implementation of the Vienna Programme of Action details actions taken by various parties, including the WCO, in areas such as transit transport, trade and transport facilitation, digital connectivity, public-private dialogue, and COVID-19 impact mitigation. This roadmap provides clear direction and framework for international support to LLDCs' development.
The WCO plays a crucial role in implementing the roadmap, particularly regarding transit transport and trade facilitation. Through developing international standards, providing capacity-building support, and promoting regional cooperation, the WCO helps LLDCs reduce trade barriers, improve trade efficiency, and stimulate economic growth.
WCO's Specific Initiatives and Action Framework
To better understand how the WCO translates commitments into concrete actions, here's a detailed look at specific initiatives and frameworks implemented to support LLDCs:
Developing and Promoting International Standards
The WCO's core function includes developing international customs standards to simplify and harmonize cross-border trade processes. For LLDCs, adopting these standards is essential as they can reduce border delays, lower transaction costs, and improve trade efficiency. The WCO's Revised Kyoto Convention (RKC) serves as a key instrument in this regard, providing a framework for simplified customs procedures, increased transparency, and trade facilitation.
Capacity Building Support
Through various capacity-building programs, the WCO helps LLDCs improve their customs administration efficiency. These programs include training courses, technical assistance, and equipment provision. The WCO also collaborates with other international organizations and donors to provide targeted support addressing LLDCs' specific needs.
Promoting Regional Cooperation
The WCO actively fosters regional cooperation among LLDCs to strengthen trade connections and promote economic integration. This includes supporting regional customs unions, facilitating information sharing, and coordinating border management measures. Enhanced regional cooperation helps LLDCs better leverage collective strengths to overcome geographical disadvantages.
Advancing Trade Facilitation
As a strong advocate for trade facilitation, the WCO supports LLDCs in implementing measures to reduce trade barriers, simplify customs procedures, and improve cross-border trade efficiency. This includes adopting information technology, implementing risk management systems, and strengthening private sector collaboration.
Addressing COVID-19 Challenges
During the pandemic, the WCO implemented various measures to help LLDCs navigate challenges, including issuing guidance documents, sharing best practices, and providing technical assistance. The WCO also collaborated with other international organizations to maintain supply chain continuity and facilitate movement of essential goods.
Data-Driven Decision Making
The WCO emphasizes the importance of data in customs administration, encouraging LLDCs to collect and analyze customs data to improve policies and practices. The organization provides technical support to help LLDCs establish data collection systems and use data for risk identification, performance assessment, and evidence-based decision making.
Sustainable Development
The WCO incorporates sustainability into all its activities and encourages LLDCs to adopt environmentally friendly customs measures. This includes promoting green customs initiatives, combating illegal wildlife trade, and supporting sustainable supply chain development.
Case Studies: WCO's Concrete Support for LLDCs
To illustrate the WCO's support for LLDCs, here are several examples:
Laos
The WCO provided technical assistance to help Laos implement the Trade Facilitation Agreement (TFA), including support for establishing a National Trade Facilitation Committee, simplifying customs procedures, and adopting information technology. These efforts helped reduce trade costs, improve efficiency, and stimulate economic growth.
Mongolia
The WCO collaborated with Mongolia to strengthen border management capabilities through training courses, equipment provision, and technical assistance. These initiatives improved border security, combated smuggling, and facilitated legitimate trade.
Zambia
The WCO supported Zambia in implementing a risk management system to enhance customs administration efficiency. Through training, technical assistance, and software support, Zambia improved its ability to identify high-risk goods, reduce border delays, and increase tax revenue.
WCO and the UN Vienna Programme of Action
The WCO's support for LLDCs closely aligns with the UN Vienna Programme of Action, a ten-year plan adopted in 2014 to help LLDCs overcome development challenges. The program covers six priority areas: transit transport, trade facilitation, structural transformation, financing, climate change, and good governance.
The WCO plays a key role in implementing the Vienna Programme of Action, particularly in transit transport and trade facilitation. Through developing international standards, providing capacity-building support, and promoting regional cooperation, the WCO helps LLDCs reduce trade barriers, improve efficiency, and stimulate economic growth.
Future Outlook: WCO's Long-Term Commitment to LLDCs
The WCO maintains a long-term commitment to supporting LLDCs. The organization will continue collaborating with LLDCs to help them overcome development challenges and achieve sustainable development goals. Future efforts will emphasize data-driven decision making and sustainable development, encouraging LLDCs to adopt environmentally friendly customs measures while improving data collection and analysis capabilities.
Conclusion: WCO's Crucial Role in Supporting LLDC Development
The World Customs Organization plays a vital role in supporting Landlocked Developing Countries. Through developing international standards, providing capacity-building support, promoting regional cooperation, advancing trade facilitation, and addressing COVID-19 challenges, the WCO helps LLDCs overcome geographical disadvantages, improve trade efficiency, stimulate economic growth, and achieve sustainable development goals.
The WCO's long-term commitment demonstrates its steadfast support for LLDC development and dedication to helping these nations overcome challenges and achieve sustainable prosperity in an increasingly globalized world.