Nepal’s Access to the Sea: Is it possible?

There are binding international laws that can grant Nepal's access to the sea. However, Nepal's over dependency over India and the later's reluctance diminishes this possibility.    

Nepal’s unfavorable terrestrial position is one among the several factors responsible for geographical, economic and developmental problems. The country’s export is cumbersome due to the unavailability of direct access to the sea. The international trade is expensive, un-competitive and incurs high cost of production.   

Nepal stepped in to the club of Land Locked Developing Countries (LLDCs) which contains 31 countries spread across Africa, Asia, Latin America and Europe. As a member of LLDCs Nepal has got a platform for raising its voice collectively for the transit rights. So far, Nepal endeavor has not reaped ample benefit in this regard. However, Nepal’s stance of implementing all the international obligation for the benefit of poor land locked through their neighboring transit countries is praiseworthy.

International community has always been in favor of weaker—land locked—countries of the world. Their rights are ensured by several international treaties. One of the pioneer effort is the Congress of Vienna, 1815 recognized the LLDCs. The discourse of transit rights of the Land locked accelerated after First World War. The shrink of Austrian empire into a land locked country accompanied by Czechoslovakia and Hungary revitalized the issue. The Treaty of Versailles, 1919 allowed land locked states to freely transit goods and personnel to sea ports. The Covenant of the League of Nations, 1920 also provided ‘freedom of communications and of transport and equitable treatment for the commerce of all members of the League’ through article 23. Later, the Declaration recognizing the Right to a Flag of States having no Sea-coast  was signed on 20 April 1921 in Barcelona, Spain, at the League of Nations Conference. Fifty States have ratified the declaration as of 2013. As an international law, it recognizes the rights of any state to sail ships on the sea under its own flag. Owing to this, a number of land-locked countries—Austria, Hungary, Switzerland, Luxembourg, Moldova, Slovakia, Paraguay, Bolivia, Mongolia, Laos, Ethiopia--have their own merchant vessel fleets. 

IGC Meeting between India and Nepal, 2013 (Photo: Kantipur)

A more robust strategy for supporting LLDCs right, including Nepal, came during 1960s only. After the formation of UNCTAD in 1964, the transit and transport problems of LLDCs were recognized. Further, in 1995, the UN General Assembly endorsed the Global Framework for Transit Transport Cooperation between LLDCs, transit countries and donor community. Later in 2003, United Nations organized an international ministerial conference in Almaty city of the world’s largest land locked country—Kazakhstan. With the goal of overcoming the problems of LLDCs, the conference adopted Almaty Declaration and Almaty Programme of Action (APOA). The objective of APOA is to establish a global framework for action in favor of both the landlocked and transit developing countries. The Programme of Action basically aims to secure access to and from the sea by all means of transport according to applicable rules of international law. It also addresses reducing costs of export, imports, delays, loss, damage as well as opening the way for export expansion safety improvement of road transport.

UNCTAD is the implementation partner of APOA and also provides technical assistance to the LLDCs.

The next episode of the ministerial meeting was held in Paraguayan city of Asuncion in 2005. It expressed concern of marginalization of LLDCs in multilateral trade, remoteness and isolation form world market is due to lack of access to the sea. The conference adopted Asunción Platform for the Doha Development Round aiming at trade facilitation and technical assistance to the LLDCs through negotiation.

Furthermore, the global body’s established the UN Office for High Representative for LDCs, LLDCs and SIDs (UNHROLLS) in 2001 to provide support for those poorer countries and implement APOA.

The aforementioned provision have been instrumental in supporting LLDCs rights of free transit to the sea. These multilateral international obligations in the form of international laws have benefitted most of the suffering countries.

Moreover, bilateral negotiations between the geographically locked countries and the transit countries have positive implications. In 1992, One among the large land locked country, Mongolia signed an agreement with Russia concerning its access to the sea and transit transport across the territory of the Russian Federation. Mongolia has been maintaining cargo ships in the East China Sea. Besides, land locked South American nation, Paraguay operates a navy of around a dozen vessels and has several thousand personnel. The Paraguayan navy could reach the open sea by traveling downriver through Argentina. In December 2013 Uruguay offered Paraguay and Bolivia, the South America’s only two-landlocked countries, access to the sea in exchange for hardwood sleepers used to reform railway infrastructure in the country. The Uruguay agreed a port to Bolivia in Rocha, located on the Atlantic Coast near the border with Brazil. 

Nepal’s most convenient route to the sea is via India and Bangladesh. Nepal shares similar cultural characteristics with India. There has been movement of people across the border between the two countries since time immemorial. Apart from this age old cultural ties, Nepal and India signed a Treaty of Peace and Friendship in 1950. The treaty allows free flow of people and goods reciprocally. Article 1 of this agreement binds the two countries respect each other’s independence, territorial integrity and sovereignty. Likewise, article 6 of the agreement allows free movement of people, capital and right to perform any industrial activities. This is only possible when the free and unrestricted movement of each other’s goods (traffic in transit) is given a good treatment. Additionally, article V of GATT 1947 (General Agreement on Tariffs and Trade) has the provision of 'freedom of transit through the territory of each contracting state via the routes most convenient. GATT was succeeded by the WTO in 1995. Both the countries are party to the WTO. A powerful Dispute Settlement Body (DSB) is there at the WTO which can bind its member countries to obey the laws. However, Nepal has never filed any case claiming hassle free and un-restricted access to the sea at the DSB. More often, Nepal has been raising the issue in bilateral talks. However, India is always reluctant in granting sufficient rights to its poorer northern neighbor.   

Government of India has become positive to grant Nepal with sufficient rights for transit via its territory. In December 2013, during a commerce secretary-level “Inter Governmental Committee (IGC)” meeting, the southern neighbor agreed to allow imported vehicles to be driven through Indian roads to Nepal from Kolkata’s Haldiya Port “on its own power”. This is one of the remarkable agreements between India and Nepal which include developing infrastructure at new customs points to facilitate bilateral trade; easing the current provision of transshipment which Nepal can further negotiate to establish port for Nepal.

Apart from this bilateral relation, Nepal can further strengthen the progress of SAARC and BIMSTEC in which both the countries are members. The current development of these two regional instrument is only up to Free Trade Areas as SAFTA and Bimstec FTA. Further diplomatic leverage can enhance the development of two of these regional cooperation into SAARC/BIMSTEC Custom Union, Common Market or, if more successful, Economic Union. Further up gradation of these fora allows free flow of capital, technology as well as a robust common economic policy in the region can allow Nepal a greater access to the sea. In order to materialize this regional instruments, Nepal should have more list of goods and services for export. At least, for now, implementation of Nepal Trade Integration Strategy 2010 which provides the list of 19 products and services as Nepal’s export potentials.

Although Nepal has several multilateral agreements and instruments to claim its rights to sea, there is always a win-win situation in bilateral dealings. The instances of Russia—Mongolia and Uruguay—Paraguay & Bolivia model of land locked state's access to the sea is beneficial for Nepal.