Proposed Puntland-Somaliland Trade Talks Face Political Hurdles

[Deeq A.]

President Deni understands that the pre-2023 unregulated trade with Somaliland placed Puntland State at a disadvantage.

Garowe (Commentary) — Since 2023, when conflict erupted in Laascaanood, the movement of goods between Puntland State of Somalia and the Somaliland administration has completely stopped. Puntland has benefited from the new trade realignment: it has recaptured all territories in Sool federally affiliated with Puntland State. As reported by Puntland Post last week, the Somaliland administration has imposed a two-tier tariff on goods from Puntland. Puntland merchants who import goods had to relocate to Berbera after Boosaaso Port became plagued by inefficiencies and Daesh threats.

DP World is expanding the capacity of Boosaaso Port to rival Berbera’s position in the Gulf of Aden. The United Arab Emirates has invested in two Somali ports, both in two administrations at loggerheads over territorial disputes. Somaliland, a secessionist administration, falsely claims parts of Puntland State, whereas Puntland, formed in 1998 on a unionist charter, emphasises Somalia’s sovereignty.

These political differences pose challenges for any trade negotiations between the Somaliland administration and Puntland State. The Somaliland administration is keen to resume trade ties with Puntland once an agreement on reopening trade routes is reached.

DP World has urged President Said Abdullahi Deni to agree to a trade deal with the Somaliland administration. However, Somaliland’s dubious sovereignty claim makes the likelihood of such a deal less certain. Goods move freely among Somali federal member states without trade agreements. Somaliland’s economy relies heavily on other parts of Somalia.

Another factor complicating the proposed trade talks is that territories previously controlled by the Somaliland administration are now under the jurisdiction of the Sool, Sanaag, Cayn and Khatumo (SSCK) interim administration. Since 2023, the SSCK administration has developed customs points at its borders with Puntland State and imposes tariffs on transport carrying goods in and out of its territories. It will be a party to any trade talks between Puntland State and the Somaliland administration.

As a former businessman, President Deni understands that the pre-2023 unregulated trade with Somaliland placed Puntland State at a disadvantage. A senior official of the Puntland Chamber of Commerce told me he is “unsure if President Deni will look after the interests of Puntland businesses that import goods.” Last week, President Deni stated that defeating Daesh “will result in the return of local importers to Boosaaso.” Preparing for trade talks with the Somaliland administration is as important as the ongoing fight against Daesh in the Calmiskaad mountain range. 

© Puntland Post, 2025

The post Proposed Puntland-Somaliland Trade Talks Face Political Hurdles appeared first on Puntland Post.