A landmark United Nations convention aimed at modernising and harmonising rules governing the sale of goods while they are in transit has received formal approval, marking a significant step for global trade law.
The convention, cleared by the UN Commission on International Trade Law (UNCITRAL), seeks to provide a uniform legal framework for transactions where goods are sold multiple times while being shipped across borders. Such practices are common in commodities, energy and bulk trades but are often governed by fragmented national laws, creating legal uncertainty and disputes.
The new rules are designed to clarify the rights and obligations of buyers and sellers, including issues related to transfer of ownership, risk, documentation and payment during transit. Supporters say this will reduce legal ambiguity, lower transaction costs and improve efficiency in international supply chains.
Trade and legal experts have described the convention as a major development that reflects the realities of modern commerce, where goods frequently change hands before reaching their final destination.
The convention will now be opened for signature and ratification by UN member states. It will come into force once the required number of countries adopt it, a process that could take several years but is expected to gain momentum amid growing calls for smoother and more predictable cross-border trade rules.