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Title page 1

Contents 3

Acknowledgements 2

Foreword by Director-General Ngozi Okonjo-Iweala 4

Key messages 7

1. Landlocked developing countries and trade bottlenecks 9

Trade bottlenecks in LLDCs 10

LLDC exports 13

Trade bottlenecks in transit countries 14

2. COVID-19 and border measures 21

Trade bottlenecks and border closures 22

Case study: Border-crossing bottlenecks in Paraguay 23

Challenges caused by trade bottlenecks at borders 25

Case study: Does COVID-19 provide an opportunity to realize transit potential for LLDCs in Central Asia? 27

Border measures in LLDCs 30

Border measures in transit countries 31

Quantitative analysis of the interventions 31

Impact of COVID-19 on LLDC trade in services 37

International responses and best practices 41

3. WTO's Trade Facilitation Agreement 43

COVID-19 and implementation of the TFA 45

Implementation progress of the TFA 45

Key TFA provisions for LLDCs 48

Article 7: Release and Clearance of Goods 48

Article 8: Border Agency Cooperation 49

Article 11: Freedom of Transit 50

Rate of TFA implementation commitments 52

Technical assistance and capacity building support 52

Challenges to notifying technical assistance needs 54

4. WTO's SPS Agreement: sanitary and phytosanitary measures 57

Case study: Standards and Trade Development Facility 60

SPS measures and goods in transit 62

LLDC notifications of SPS measures 63

COVID-19 and SPS measures 64

Participation in the SPS Committee 66

SPS-related private standards 68

5. WTO's TBT Agreement: technical barriers to trade 71

COVID-19 and TBT measures 72

Participation in the TBT Committee 73

Capacity constraints in TBT 74

Quality infrastructure 74

6. Trade profiles of landlocked developing countries 77

A portrait of LLDC trade 82

Trade in services and LLDC connectivity 90

Transport and logistics services 91

ICT connectivity 96

COVID-19, LLDC connectivity and tourism 97

Case study: Digitalizing border processes in Kazakhstan 98

E-commerce: spanning the digital divide in LLDCs 100

Trade costs 102

Trade bottlenecks in LLDCs from maritime disruptions 103

Rules of origin and preference utilization 106

7. Building trade capacity in landlocked developing countries 111

Aid for Trade 112

Vienna Programme of Action 114

Impacts of climate change 117

Enhanced Integrated Framework 118

8. Recommendations 123

Bibliography 128

Abbreviations 130

Tables 10

Table 1. Landlocked developing countries 10

Table 2. Top 10 LLDC exports in 2020 13

Table 3. Examples of inland transport and logistics facilitation measures adopted by LLDCs to ease trade bottlenecks 29

Table 4. Transit countries 34

Table 5. Reported COVID-related interventions 35

Table 6. Article 7 notification data 49

Table 7. Articles 8 and 11 notification data 50

Table 8. Deconstructing Article 11 51

Table 9. Top 10 products exported by LLDCs in 2020 85

Table 10. Top 10 agricultural products exported by LLDCs in 2020 85

Table 11. Top 10 products imported by LLDCs in 2020 86

Figures 11

Figure 1. The main trade bottlenecks 11

Figure 2. Top LLDC goods exports, 2020 18

Figure 3. LLDC COVID-related interventions by region 35

Figure 4. Transit country COVID-related interventions by region 36

Figure 5. Commercial services exports, 2010-2020 37

Figure 6. LLDC exports of commercial services by sector, 2010-2020 38

Figure 7. LLDCs exports of other commercial services, by selected subsector, 2020 39

Figure 8. LLDC commercial services exports by individual economy, 2020 40

Figure 9. Progress of TFA implementation commitments 46

Figure 10. Top five measures with the highest rate of TFA implementation commitments by LLDCs 53

Figure 11. Bottom five measures with lowest rate of TFA implementation commitments by LLDCs 53

Figure 12. Type of technical assistance required 54

Figure 13. STCs discussed at the SPS Committee 66

Figure 14. Merchandise exports as a share of GDP, 2015 and 2019 78

Figure 15. Tariffs applied (including preferences), 2015 and 2019 79

Figure 16. Tariffs faced (including preferences) on exports to developed regions, 2015 and 2019 80

Figure 17. Share of duty-free exports to developed regions, 2015 and 2019 81

Figure 18. Share of duty-free products from LLDCs on raw, semi-processed and processed, 2015 and 2019 81

Figure 19. Merchandise exports of the LLDCs and the rest of the world (RoW), 2010-2020 82

Figure 20. Merchandise imports of LLDCs and the rest of the world (RoW), 2010-2020 83

Figure 21. Merchandise trade balance of LLDCs, 2010-2020 84

Figure 22. Top 10 LLDC traders, 2020 87

Figure 23. Change in merchandise LLDC exports, 2020 88

Figure 24. Top 10 LLDC trading partners, 2020 89

Figure 25. Merchandise LLDC exports, 2020Q1-2021Q1 90

Figure 26. Fall in international passenger and cargo flights in LLDCs, 2019-2020 99

Figure 27. Trade cost by sector, 2017 103

Figure 28. Factors explaining differences in trade costs, coastal versus landlocked 104

Figure 29. Underutilization rates of developing countries and LDCs, landlocked versus coastal 107

Figure 30. Underutilization rates, agricultural (AG) versus non-agricultural (NAMA) products 108

Figure 31. Aid for Trade to LLDCs 112

Figure 32. Aid for Trade disbursements 113

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