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New UN convention would let companies sell goods in transit using negotiable cargo documents
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Summary
Speaker 1, presenter, opened a briefing about an international treaty proposal by saying, “Imagine a world where trade is faster, safer, and more accessible.”
Speaker 1, presenter, opened a briefing about an international treaty proposal by saying, “Imagine a world where trade is faster, safer, and more accessible. A world where goods in transit, regardless of their location, destination, and mode of transport, can be resold in just seconds with a few clicks, realizing their full value.”
The presentation described a proposed United Nations convention on negotiable cargo documents, or NCDs, that would create a negotiable document of title for goods transported by road, rail, air or sea. Speaker 1 said such documents would allow “the holder to claim the goods or transfer them to another party while they are en route,” extending a capability long associated with maritime bills of lading to multimodal and inland transport.
The proposal aims to address cash-flow and trade-finance barriers for micro, small and medium-sized enterprises (MSMEs) and to improve access for landlocked countries, the presenters said. “For small businesses like ours, this convention means we can obtain trade finance more easily and compete in global markets without unnecessary barriers,” Speaker 3 said.
Speakers said NCDs would work either on paper or electronically and that a single electronic NCD could be used across the supply chain. Speaker 2 said, “The flexibility to sell goods in transit to another buyer is becoming an important part of building resilience into supply chains in times of disruption.” Speaker 5 added that banks could accept negotiable transport documents as collateral under an established legal framework or could adjust capital treatment depending on applicable regulations: “Banks can mitigate risks in trade finance transactions by either accepting negotiable transport documents as collateral based on an established legal framework, or by decreasing their capital requirements, depending on applicable regulations.”
Presenters argued the convention would boost economic activity by simplifying trade processes, encouraging investment in regional transport corridors through greater predictability and by supporting digital transformation in trade operations. The briefing said the United Nations Commission on International Trade Law (UNCITRAL) has worked on the framework since 2019 and that intergovernmental negotiations began in 2022.
Timing was emphasized as consequential. The presenters said intergovernmental negotiations are scheduled to conclude in July 2025 and that submission of the convention to the United Nations General Assembly is planned for late 2025. Speaker 1 urged governments to engage in the remaining negotiation phase so the final text “is inclusive, effective, and meets the needs of diverse economies.”
The briefing closed with practical suggestions for countries interested in participating: contact UNCITRAL, consult trade and legal experts, and collaborate with other nations to build consensus. “Join UNCITRAL and its implementing partner for this project, ITC. Together, we can make history,” Speaker 1 said.
No formal votes or binding decisions were recorded during the briefing; presenters described the draft convention and the ongoing intergovernmental process.
