Kutesa wants better markets for developing countries

Nov 04, 2014

UN member states agreed to enhance bilateral and regional cooperation to secure access to the sea, reduce production costs to increase export competitiveness

By Taddeo Bwambale

 

THE President of the 69th Session of the UN General Assembly, Sam Kutesa has pressed member states to move quickly to address challenges faced by landlocked developing countries (LLDCs).

 

Kutesa made the appeal at the opening of the second United Nations conference on landlocked developing countries held in Vienna, Austria on Monday.

 

He said action was needed to address the special needs of landlocked developing countries, including the high transport costs. 

 

Drawing on the experience of his home country, Kutesa, who is also Uganda’s foreign affairs minister, said such bottlenecks have made it difficult for LLDCs to integrate into global markets.

 

In 2012, the trade volume of LLDCs was 61% that of coastal countries, Kutesa said, quoting a recent report by the UN Secretary-General.

 

Over the same period, LLDCs spent, on average, $3,204 to export a standardized container of cargo, whereas transit countries spent $1,268. It also costs LLDCs $3,884 to import a container of merchandise, while their coastal neighbours incurred a cost of just $1,434.

 

Citing World Bank estimates, Kutesa noted that basic import and export costs of ‘LLDCs’ are nearly twice those of their transit neighbours. 

 

“With such statistics, it may be an understatement to say that LLDCs are swimming against the tide. And while LLDCs have the primary responsibility for their own development, even with their best efforts, they cannot meet their development objectives on their own,” he stated.  

 

He observed that LLDCs need sustained and unwavering cooperation from transit countries, financial and technical support from bilateral and multilateral partners, and firm commitments from the international community. 

 

A UN Programme of Action developed 11 years ago acknowledged and set out to address the key development challenges faced by LLDCs due to their lack of territorial access to the sea. 

 

UN member states agreed to enhance bilateral and regional cooperation to secure access to the sea, reduce production costs to increase export competitiveness, reduce import-related transport costs and non-tariff barriers along trade routes.

 

They also resolved to improve commerce and trade-facilitating infrastructure, such as roads, railways; and ports; and address all fundamental transit policy issues.

 

Kutesa hailed progress in addressing the challenge, noting that there has been significant progress in areas as such harmonization of transport and transit policies and procedures with transit countries, development of transport infrastructure.  

 

He also cited increased bilateral, regional and multilateral cooperation, especially in production and trade-facilitating infrastructure, Kutesa said. 

 

He, however, called for more effort to address the deep-rooted and structural challenges that hinder access to regional and international markets for LLDCs. 

 

“Export volumes, compared to imports, are still low, and are predominantly raw materials and commodity based. Critical physical infrastructure, such as roads, railways and energy is either lacking or inadequate,” he said. 

 

“Energy, a basic requirement for industrialisation and production, including the facilitation of ICT-based infrastructure, remains inadequate and expensive.” 

 

He proposed greater market access for LLDCs at the regional and international levels, a fair trading regime, and technical support to help LLDCs meet market standards. 

 

Kutesa said the post-2015 development agenda must address needs of LLDCs in order to ensure that it is transformative.

 

He said a new Programme of Action to be adopted in Vienna was expected to support LLDCs to enhance their competitiveness, stimulate productive capacities, diversify exports, strengthen their resilience to external and internal shocks, and ensure a better future for their 450 million citizens. 

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