Lex Portus (Oct 2018)
Obstacles to Free International Trade: Pressing Challenges of the Freedom of Transit
Abstract
The principle of freedom of transit has always played a vital role in the functioning of the international trade system. In order to facilitate free trade, many states started to conclude basic transit agreements back in the XIX century. International community has achieved a significant success in promoting the freedom of transit and, as a result, international trade since then. For instance, various international conventions, such as Convention on Freedom of Transit (1921), Convention on the High Seas (1958), Convention on Transit Trade of Land-Locked States (1965) and, of course, Article V of General Agreement on Tariffs and Trade (1994) were adopted maintaining the discussion around the importance of freedom of transit for international trade. This paper deals with a principle of freedom of transit in the understanding of international conventions and WTO law, as well as the EU customs legislation. In order to fully understand the evolution of freedom of transit and its importance for the international community, this paper outlines the first international treaties concluded to facilitate free trade between several states, and also touches upon the first disputes arising out violation of freedom of transit. Despite the significant success achieved by the international community, including the World Trade Organization, in promoting the freedom of transit, a number of issues continue to exist. Seizure of goods in transit by customs authorities of the European Union is one of the most important and arguable issues. For this reason, the paper analyses the existing transit rules in the European Union and their compliance with the WTO law. Moreover, freedom of transit of gas is analysed in light of the WTO law and fundamental principal of international law at large. Finally, author assess one of the recent landmark cases concerning the freedom of transit, namely the transit dispute between Ukraine and the Russian Federation in the WTO.
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