Local mechanism to be activated to sort out trade problems

Nepal-China trade talks concluded on Monday with officials of both countries agreeing to activate local mechanism to thrash out pertinent trade issues, including the process of quality certification and quarantine of Nepali exportable goods to China. Jiba Raj Koirala, joint secretary at the Ministry of Commerce and Supplies (MoCS), and Caidanan Jie, deputy secretary general of Tibet Autonomous Region of China, signed the agreement at the 4th Nepal-China-Tibet Trade Facilitation Committee (NTTFC) meeting. Koirala and Jie had led the delegation of their respective countries in the meeting. Nabaraj Dhakal, under secretary at the MoCS, said Nepal and China have agreed to activate the joint working group led by customs chiefs of both the countries to resolve the issues of time harmonization between customs of the two countries, simplify quarantine process, and recognize quality certification issued by labs of both countries for exportable goods. The mechanism will also deal with problems, including administrative procedures, at the Chinese customs office being faced by Nepali traders. Nepali Traders have been facing problems in clearance of goods through the customs point due to difference in office hours between the two countries. “As such problems have been hitting bilateral trade, we have agreed to activate the joint working level mechanism. Regular meeting of the working group will sort out the existing and emerging issues in bilateral trade,” Dhakal told Republica. Responding to the demand of Nepali officials, China has also put labels on Chinese exportable products in English language. Though issues of development of infrastructure, including upgrading of Kathmandu-Tatopani road and construction of Inland Container Depot in Rasuwagadhi, were discussed at the two-day meeting, Dhakal said no formal agreement could be reached on them after the Chinese said the issues were to be dealt by the central government of China. Dhakal also said Nepal´s demands for opening up branches of Chinese banks in Nepal would be addressed soon as central banks of both the countries are on regular discussion on the issue. In the meeting, the Chinese side informed Nepali officials that it has been providing duty free access to 7,831 Nepali products and urged Nepal to increase the exportable goods to take optimum benefit from the facility. Earlier, China had informed that 7,787 products are in the list. Nepal has been suffering huge trade deficit with the northern neighbor. According to Trade and Export Promotion Center (TEPC), Nepal´s exports to China increased by 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´s trade deficit with its second largest trade partner reached Rs 61 billion during the review period. Nepal had suffered trade deficit of around Rs 46 billion in the same period last year.