New CTN Agreement Promises Increased Revenue for Liberia, More Secure, Efficient Trade Tracking

Monrovia, Liberia:  President Joseph Nyumah Boakai’s administration has successfully renegotiated the Cargo Tracking Note (CTN) deal, delivering a major win for the Government of Liberia (GOL) and the nation’s trade sector. The new agreement, which grants Liberia a 40% revenue share from CTN services, marks a stark improvement over the previous deal, which allocated only 3%. This new revenue-sharing model, coupled with a reduction in the CTN fee per twenty-foot equivalent unit (TEU), offers significant benefits for both the government and business stakeholders.

The revised CTN deal, which was finalized on March 10, 2025, represents a remarkable shift in Liberia’s financial position. The GOL’s share of the revenue has increased to 40%, with a further boost to 45% after the first five years of the agreement. The previous deal, signed in 2018, granted Liberia a meager 3% of the CTN revenue. The new agreement also reduces the CTN fee from US$105 per TEU to US$95, marking a 10% reduction in fees for importers and businesses.

The new deal’s financial terms position Liberia to secure far greater revenue than under the previous agreement, delivering a substantial 37% boost. This comes after several weeks of intense negotiations, led by key stakeholders, including the Ministry of Finance for Development Planning, the Liberia Revenue Authority, the National Port Authority, and business actors.

The renegotiated agreement, spanning 47 pages, grants GTMS Liberia Incorporated the exclusive right to provide CTN services in Liberia. This includes procurement and installation of tracking equipment, as well as the setup and commissioning of the electronic Cargo Tracking Note system, which will be crucial for international trade compliance.

One of the most significant features of the new agreement is the emphasis on oversight. Unlike the 2018 deal, which lacked stringent monitoring provisions, the 2025 CTN deal prioritizes regular, quarterly monitoring to ensure that all terms are adhered to. This enhanced oversight will help guarantee that Liberia receives its rightful share of revenue and that the tracking system remains secure and effective.

The new deal introduces several key changes that are expected to have a lasting positive impact on Liberia’s economy and its citizens:

• Fixed Revenue Sharing: The revenue-sharing model has been shifted from the ambiguous throughput benchmark of the previous deal to a fixed model, with 40% for the GOL and 60% for GTMS. After five years, Liberia’s share will rise to 45%.

• Lower Fees for Importers: The CTN fee has been reduced from US$105 to US$95 per TEU, providing a significant financial relief to importers and businesses.

• Tax Compliance: The new deal removes all tax waivers that were part of the 2018 agreement. GTMS is now required to pay taxes fully in line with Liberia’s laws, ensuring greater financial accountability.

• Liberianization and Capacity Building: The agreement includes provisions for Liberian nationals to occupy key positions within GTMS. It also mandates comprehensive training and capacity-building programs to enhance the skills of Liberians in the trade and logistics sector.

• Economic Growth and Transparency: The GOL’s new share of 40% (increasing to 45% in five years) promises to generate more revenue for the government, which can be reinvested into the country’s development. Furthermore, all CTN payments will now be processed and banked within Liberia, a policy shift aimed at keeping more financial resources within the country.

Under the previous 2018 CTN agreement, GTMS was granted significant tax exemptions, costing Liberia hundreds of thousands of dollars. This provision has been completely removed in the new deal. GTMS will now fully comply with Liberia’s tax laws, ensuring that the company contributes to the nation’s economy in a fair and equitable manner.

The revised CTN agreement has been welcomed by policymakers and business stakeholders alike, who see it as a major step forward for Liberia’s trade sector. Development Specialist Ambullai Mamey highlighted the importance of the deal, noting that the new agreement ensures greater transparency, lower costs for port users, and increased revenue for the government.

“From 3% of revenue to 40% of revenue for government. 45% in the last 5 years. Also, CTN is required to pay the government 20% corporate tax on its 60%. No tax exemption. Port users are paying lower fees than they paid in the past. Trading is secured and tracked in compliance with standards. The agreement will be published after it is notarized. Transparency,” Mamey stated.

With the 2025 CTN Deal now in full effect, Liberia stands poised to benefit from a more secure, efficient, and transparent trade system. Importers, business stakeholders, and government officials are optimistic about the country’s future prospects under the revised agreement.

The Government of Liberia’s successful renegotiation of the CTN deal is a testament to President Joseph Nyumah Boakai’s commitment to ensuring that the country benefits more from its trade agreements. The future looks brighter for Liberia, as this new deal promises to drive economic growth, enhance national revenue, and improve the overall business climate in the country.