Investment promotion, trade facilitation tops Nepal's agenda

Nepal is raising around half a dozen trade issues, including investment promotion, simplification of quality certification and quarantine checking process for exportable Nepali goods, at the upcoming foreign secretary level meeting with China to be held in Beijing next week. Foreign Secretary Arjun Bahadur Thapa is leading the Nepali delegation in the ´10th meeting of the Consultation Mechanism´ that begins in the Chinese capital on August 26. “Most of the economic issues that we are raising in the Beijing meeting are similar to those which were discussed at the recently held Nepal-China trade talks in Kathmandu,” a senior official at the Ministry of Commerce and Supplies (MoCS) told Republica. The Ministry of Commerce and Supplies (MoCS) recently forwarded the agenda for the meeting to the Ministry of Foreign Affairs. The joint-secretary level 4th Nepal-China-Tibet Trade Facilitation Committee (NTTFC) meeting was held in Kathmandu on August 11-12. In the meeting, Nepal and China had agreed to activate the joint working group led by customs chiefs of both the countries to resolve issues emanating in bilateral trade. “Some of the issues have already been agreed at NTTFC meeting, while some need to be discussed at the central government level. We are raising all trade related issues at the upcoming meeting,” a source at MoFA said. Nepali officials have put time harmonization between customs of the two countries, simplification of quarantine process, and recognition of quality certification issued by Nepali laboratories for Nepali exportable goods to the world´s second largest economy as the major agenda in the meeting. Traders have been facing difficulties in clearance of goods through the customs points due to difference in office hours between the two countries. The NTTFC had failed to reach to a conclusion on issues related to development of trade infrastructure, including upgradation of Kathmandu-Tatopani road and construction of Inland Container Depot in Rasuwagadhi, and opening up of a branch office of Chinese bank in Nepal. “Issues which have not been finalized will be extensively discussed with the central government officials at the Beijing meeting,” the source added. At the NTTFC meeting, Chinese officials had assured Nepali trade officials that issues which were not finalized in the meeting would be brought to the notice of the central government. Besides theses issues, Nepali officials are also seeking the support of China in bringing down the yawning trade deficit between the two countries. Nepal has been failing to take benefit of the big market in China though the northern neighbor has been offering duty free access to 7,831 Nepali goods. Limited number of exportable goods on the back of prolonged industrial slowdown has weakened Nepal´s supply capacity. According to Trade and Export Promotion Center (TEPC), Nepal´s export to China increased by a whopping 137 percent to Rs 1.99 billion during the first 11 months of the current fiscal year, while imports increased by 33 percent to Rs 63.13 billion. Nepal suffered trade deficit of Rs 61 billion with China during the review period. Trade deficit with China stood at Rs 46 billion in the same period last year. Deepak Dhital, joint secretary at the MoFA, also said the meeting will be focused on economic issues with promotion of trade and investment in hydropower, tourism and agriculture in Nepal by China high on agenda. Meanwhile, a high-level source also said Chinese officials would propose Nepal to sign Bilateral Investment and Promotion and Protection Agreement (BIPPA).