NEPAL: Nepal to push for zero tariff facility


FROM SOUTH ASIAN MEDIA NET / MY REPUBLICA

KATHMANDU: A government delegation led by Commerce Secretary Purushottam Ojha is visiting the United States in the first week of April to push for special bilateral trading arrangement, seeking zero tariff facility for Nepal´s key exports and support for infrastructure development.

Previously, Ministry of Commerce and Supplies (MoCS) had planned the visit under the leadership of Minister Rajendra Mahato, but the visit was postponed after Nepali Embassy sought additional time to confirm appointments with the US officials concerned.

The team will mainly discuss on Trade and Investment Framework Agreement (TIFA), a pact that US Trade Representative (USTR) Office has prescribed for Nepal to win special market access facility in the world´s largest economy.

“It will also push for zero duty for Nepal´s dying readymade garment industry, apprise investors and officials there about investment avenues and opportunities here and seek assistance for trade related infrastructure development,” Ojha told myrepublica.com.

For the purpose, the team will hold talks with senior officials of Department of Commerce, US Trade Representative, senators and congressmen. The delegation will also meet with the officials of the State Department, seeking assistance to develop trade related infrastructure.

It will also interact with US business organizations, and work for establishing a reliable and workable private-private ties — a mechanism that could help investors on the other side of the Atlantic to know and update on business and investment opportunities here.

To foster such ties, MoCS has included chiefs of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Garment Association Nepal (GAN) in the delegation.

“The main objective of the visit is to get a tangible and formal public and private links established so that economic engagements between the two countries could be rejuvenated,” said Ojha.

Amid political turmoil and instability, Nepal´s trade and economic relations with the largest economy of the world have faded in recent years. In recent years, Nepal has received almost nil US investment and its major exports like readymade garment have also collapsed.

As a result, bilateral trade between Nepal and the US stands very nominal with Nepal enjoying trade surplus of Rs 180 million. In such a situation, officials believe that the signing of TIFA and acquisition of special preferences will give new impetus to bilateral trade and investment.

Traders too argue that the facility will instantly give boost to Nepal´s exports like handmade woolen carpet, pashmina and other items that are barely covered under GSP (generalized system of preferences).

As a response to Nepal´s past efforts to win zero tariff facility for readymade garments, USTR had forwarded the text of TIFA to the Commerce Ministry a few months ago. The ministry had instantly responded positively to the offer, suggesting certain changes in the text.