Nepal for signing Economic Framework Agreement with Turkey

NEPAL has responded to Turkey’s offer to sign a trade and economic cooperation agreement by proposing to conclude a broader Economic Framework Agreement (EFA). The agreement will incorporate more areas ranging from trade, investment and economy to energy and environment cooperation while Turkey’s proposal is largely related to enhancing trade and investment between the two countries. Interministerial meetings held between the Finance, Industry, Commerce and Supplies, Foreign Affairs, Energy and Environment ministries two weeks ago decided to sign an EFA with Turkey instead of a trade and economic cooperation accord. “The discussions concluded that such an agreement would benefit the country more than simply a pact on trade and economic cooperation,” said Abha Shrestha, under secretary at the Commerce Ministry. Following the understanding, the Foreign Ministry has taken the leadership role in doing the home work and signing the framework agreement. Foreign Secretary Arjun Bahadur Thapa said his ministry was currently preparing a draft agreement and has asked all the ministries to give their inputs. “Some of the ministries have begun giving us their inputs for the draft,” he said. “Once the inputs from all the ministries are compiled, the draft will be given the final shape and it will be sent to the Turkish government for final approval.” He added that the agreement could benefit the country greatly in terms of enhancing trade and investment. Seeking to promote trade, investment and economic cooperation with Nepal, the Turkish government had sent a proposal and draft Agreement on Trade, Investment and Economic Cooperation to the Nepal government in mid-March. Turkey had proposed establishing a Nepal-Turkey Joint Economic Commission to explore trade and investment-related opportunities and identify and resolve challenges. Turkey had also pledged to promote Nepal’s trade and strengthen the capacity of its private sector. “The proposal to form such a commission proves that Turkey wants to work closely with Nepal while conducting a trade relationship,” a Foreign Ministry official said. “In this context, we believe that the Turkish government would accept our proposal to sign a framework agreement.” Despite growing trade between the two countries, Nepal has not signed any bilateral agreement with Turkey. The government has so far signed bilateral trade treaties with 17 countries including India, the US, China, Bangladesh, Czechoslovakia, the UK and Poland. It has signed transit treaties with India and Bangladesh.