WORLD TRADE  
ORGANIZATION  TN/TF/W/35 
29 April 2005 
 (05-1746) 
Negotiating Group on Trade Facilitation Original:   English 
  
 
COMMUNICATION FROM THE EUROPEAN COMMUNITIES 
  
 The following communication, dated 28 April 2005, from the Delegation of the European 
Communities, is being circulated in advance of  the Negotiating Group meeting of 2-4 May 2005. 
 
 
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FREEDOM OF TRANSIT 
  
I. INTRODUCTION 
1. This submission sets out problems faced by traders in relation to transit and makes proposals 
for addressing transit issues in the negotiations on Tr ade Facilitation, notably through clarifications 
and improvements to GATT Article V.  Despite existing GATT rules aimed at ensuring the smooth 
and non-discriminatory flow of trade across borders fo r transit, freedom of transit is often absent or 
compromised in practice.  Traders in landlocked WTO Members, who generally have to rely on 
possibilities for transportation through neighbouring count ries, face particular difficulties.  However, 
traders in all WTO Members, for whom the most cost-effective way of exporting or importing goods 
will be to cross the territory of another WTO Member , have a clear interest in ensuring the freedom of 
transit.   
II. TRANSIT PROBLEMS  
2. The following is a non-exhaustive list of problem s identified by devel oping- and developed- 
country traders in relation to transit:   
- Lack of information on and transparency
 of transit requirements.  National rules may change 
frequently and be enforced without prior notice, without consultation and w ith a retroactive date 
of implementation;  
- High, discriminatory and unwarranted transit charges  and illegal roadblocks used to levy fees;  
- Excessive, burdensome and non-standardized  documentation, data requirements and 
procedures .  Documents and certificates may become invalid due to delays occurring in transit 
and / or within an unreasonably short time period; 
- Difficulty with the return, at the point of exit, of cash guarantees  posted at the point of entry.  
Imposition of disproportionate guarantees;  
- Unjustifiable restrictions  on means of transport, on drivers and goods in transit, including 
requirements for consignments to be transported under escort;   
- Lack of co-ordination  between different agencies involved in transit;  
- Lack of willingness or refusal on the part of transiting countries to co-operate  with exporting or 
importing countries, including with regard to th e application of regional transit regimes or 
corridors;  TN/TF/W/35 
Page 2  
 
 - Non-application of international,  regional or bilateral instruments
 for transit; 
- Lack of resources  in terms of trained personnel and infrastructure.  
 3. The combined effect of these problems significantly hinders trade.  Many of these problems 
fall within the purview of GATT Article V, but these  provisions lack detail, which has hampered their 
effective application in the past.  
 
III. PROPOSALS FOR CLARIFIED AND IMPROVED RULES 
4. The clarification and improvement of GATT Artic le V on freedom of transit, in conjunction 
with proposals concerning GATT Articles VIII and X, can address some, even if not all, of the above 
problems.  Some issues may need to be addressed, at  least in part, in other fora, including the DDA 
negotiations on Services.  The question of infrastru cture should primarily be addressed in the context 
of long-term development strategies involving mu ltilateral and bilateral de velopment co-operation 
and investment bodies.  Several other issues may be  most effectively addressed through working with 
relevant international organiza tions in parallel to developing improved WTO rules on transit.  
Furthermore, in taking proposals forward in the Negotiating Group on Trade Facilitation, legitimate 
public policy goals, related for example to national security, health, safety and the environment, must 
obviously not be compromised in any way.  In this respect, the exceptions provided for in GATT Article XX and XXI are fully applicable and rele vant and should therefore be kept in view.   
5. In terms of possible WTO measures to improve freedom of transit, the following proposals 
are put forward for Members' consideration: 
• Improve transparency
 of transit requirements, procedures and charges.  A number of 
proposals already submitted to the Negotiating Group, including with regard to the publication of information and requirements for predictability and consu ltation, are relevant 
and should apply to transit.   
 
• Agree more effective GATT Article V disciplines on charges
 for transit.  Proposals already 
submitted to the Negotiating Group in rela tion to GATT Article VIII rules on fees and 
charges could be a basis for elaborating paralle l provisions on charges for transit.  Members 
could consider how to ensure that all char ges for transit are effectively covered.   
 
• Simplify and standardize documentation,  data requirements and procedures  applied to goods 
and means of transport in transit. A number of proposals already submitted to the Negotiating 
Group, notably in relation to GATT Article V III, are relevant.  These include pre-arrival 
processing of transit documents, the use of comme rcially available information and data, risk 
management, authorized trader schemes, the establishment of "single windows", and time release measures.   
 
• Ensure non-discrimination
 between means of transport, betw een carriers and between types of 
consignment in relation to transit procedures, including with regard to fixed installations 
which themselves are capable of moving goods, such as pipelines.  Any restrictions, controls 
or requirements must pursue a legitimate public  policy objective, be proportionate and be 
applied uniformly.   
 
• Introduce more effective disciplines on the le vel, nature and management of guarantees  
required from transit operators, including rules to ensure that they are not used as an 
instrument to raise revenue.   
  TN/TF/W/35 
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 • Improve co-operation  and co-ordination between all concerned agencies in each WTO 
Member and across borders.  In many cases solu tions to transit problems can only be found 
through regional collaboration since it is at the regional level that a large part of the problems 
related to unnecessary hindrances to transit are e xperienced.  Consideration could be given to 
providing guidance on the main elements of re gional transit and their proper implementation 
and improving regional co-operation on trans it.  WTO Members could also envisage 
provisions to take account of international sta ndards and instruments, including when drawing 
up bilateral or regional instruments.   
 
• Operationalize the existing commitment in Article  V to grant freedom of transit through the 
territory of each Member via the "routes most convenient for international transit ", for 
example by leaving the choice of route and means of transport to the operator.   
 
• Clarify and improve terminology to reduce pe rceived uncertainty and avoid loopholes, for 
example with regard to the definition of "g oods (including baggage)" in GATT Article V, 
paragraph 1.  
 6. The use of relevant international standards a nd instruments is relevant to a number of the 
above proposals and should be taken fully on board in further developing proposals.  The provision of 
technical assistance and support for capacity building is likely to be necessary for some developing 
countries to implement some of the above proposed commitments, including due to start-up costs.  
The identification of Members' needs and priorities in relation to proposals can help take this forward.  
It would also put Members in a position to take fully into account the principle of special and 
differential treatment in the results of the negotiatio ns and to make such treatment precise, effective 
and operational.   
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