Navigating Transit Governance: WTO Rules and UNCLOS with a Focus on Nepal and Afghanistan

Many developing, landlocked countries, such as Nepal and Afghanistan, face significant challenges in accessing international markets, which hinders their development. These issues inspired the United Nations Convention on the Law of the Sea (UNCLOS) in 1982, which grants landlocked states the right to navigate through coastal territories for trade. This article investigates how UNCLOS has influenced the transit and trade of Nepal and Afghanistan since the treaty's signing. The research examines the macroeconomic impacts of UNCLOS on these countries, focusing on trade trends and regional cooperation agreements. It analyzes how UNCLOS has facilitated increased trade and new economic activities while highlighting ongoing challenges, including reliance on neighboring ports, regional political instability, and infrastructural barriers. Additionally, the article evaluates UNCLOS's role in fostering regional collaboration and economic strategies for trade enhancement, alongside the contributions of organizations like the WTO in supporting landlocked states. Despite the legal frameworks established by UNCLOS, the overall impact on trade remains contingent upon global politics and the economic conditions of the countries involved. To optimize the benefits of UNCLOS for Nepal and Afghanistan, the article recommends policies that emphasize regional cooperation, infrastructure development, and engagement with international organizations to strengthen trade opportunities.