World Trade Organization
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WB unveils trade policy review, Urges trade policy reforms in South Asia
KATHMANDU, November 8

Despite progress towards trade liberalization, protectionist forces that are still strong in the South Asian countries are hampering growth and poverty reduction of the region, states a World Bank report.

The trade policies of the South Asian countries are much more open than in the past. The report looks into key aspects of the current trade regimes in Bangladesh, India, Nepal, Pakistan, and Sri Lanka: and offers recommendations on some of the key issues on trade reforms. Among others, it examines existing trade regimes, their evolutions over the past decade and future directions policies further providing a comprehensive overview of some major issues which are making progress in the region, including agricultural; subsidies and preferential trading arrangements.

The report states that move towards more market-based exchange rate regime has facilitated trade expansion in the region, but the countries still resort to tariffs as the principal means to protect their domestic industries. Also featured are trade policies affecting key sectors like agriculture, fertilizers, and textiles and clothing.
 
 
 
FNCCI, CII to solve snags in Indo-Nepal trade
KATHMANDU, October 14

The Joint Economic Council of the Federation of Nepalese Chambers of Commerce and Industries (FNCCI) and the Confederation of Indian Industries (CII) have agreed to make special efforts resolve the trade problems between the two countries.

The meeting of the Joint Economic Council has concluded in New Delhi and has decided to ensure that the unsolved problems, including quarantine and laboratory test of Nepalese agricultural products exported to India are ironed out.
The two parties also agreed to jointly organize a Nepal-India Business Summit in India next year to promote bilateral investment, trade and tourism. A Made in Nepal Road Show will also be organized in the major cities of India like New Delhi, Mumbai, Kolkata and Bangalore to showcase investment opportunities.
 
 
 
Shrestha leaves for China
KATHMANDU, September 20

Rajesh Kaji Shrestha, president of Nepal Chamber of Commerce left for Peoples Republic of China to participate in a three day long seminar on International Trade Development. The seminar is organized by China International Center for Economic and Technical exchange. Shrestha will deliver two keynote speeches highlighting the challenges in regional trade with neighboring countries.
 
 
 
Traders urge support
LALITPUR, September 19

Office bearers of four districts chamber of commerce in Karnali zone have made a visit to Lalitpur Chamber of Commerce. They have requested co-operation in the running of the industries in Karnali, need of consolidation of industrial association, mutual co-operation for trade promotion and resolution of the present crises and pave way for the industrial development of the country.
 
 
 
CNI efforts for Indian investment
KATHMANDU, September 14

Six members of Confederation of Nepalese Industries (CNI), that were involved in the trade delegation during Prime Minister Sher Bahadur Deuba’s visit to India, made effective efforts to draw Indian investment in Nepal.

The CNI members met the members of Confederation of Indian Industries (CII), and discussed over the potentials of bilateral relations. CNI delegation also held an interaction with the Federation of Indian Chambers of Commerce and Industries (FICCI) and discussed on Indo-Nepal trade and economic relations.
 
 
 
Trade deficit touches to Rs 86b
KATHMANDU, September 14

Fuelled by the high growth rates both in the imports and exports, total trade with India registered an encouraging growth of 16% while trade with third countries rise of 2.7%.

The total annual export, during the period, registered a moderate growth of 5.6% against last year’s. The high growth rate of 18.2% in he exports to India greatly helped suppressed thee negative growth seen in the exports of third countries.

Despite gloomy business environment, total imports rose by almost 12%. Imports from India and third countries increased by 15.1% and 7.6% respectively. As a result of higher growth rate of imports than exports, the overall trade deficit widened by 16.1%.

Among the exportable items to India are vegetable ghee continued to top the list of exports to India followed by zinc oxide and jute goods. Similarly, readymade garments, the largest third country exports of the country. Likewise, the goods imported from India includes petroleum products, vehicles and spare parts, cold-rolled sheets. Crude palm oil topped the list of imports from third countries followed by Polythene granules and telecommunication equipment.

 
 
 
BIMSTEC to finalize FTA accord on goods soon
KATHMANDU, September 14

Trade Negotiation Committee of the BIMSTEC has decided to complete negotiations on goods-in-trade at first to pave way for early enforcement of the bloc’s free trade area agreement.

Purushottam Ojha, Joint Secretary at the Ministry of Industry, Commerce and Supplies said that the committee will first of all finalize FTA texts on trade in goods, as the FTA on trade-in-goods will come into effect from 2006 July.

He added that negotiations on FTA text for trade-in-services and investment, two other areas governed by the bloc’s FTA framework accord adopted earlier this year, would be held only after 2005.

Trade representatives from Nepal, Bangladesh, India, Sri Lanka, Bhutan, Myanmar and Thailand would be gathering in New Delhi in December for the second negotiations. Likewise, the third meeting will be held in Kathmandu in February 2005 and fourth meeting in Myanmar in April next year. To proceed ahead with the negotiations a Thai trade authority has agreed to develop a paper on the existing intra-BIM-STEC trade, analysis of the blocs trade potentials and concept paper on way forward.

Ojha said that among others, the paper will suggest a basis for tariff reduction modality and trade liberalization program, regional rules of origin, safeguard measures, treatment out of quota rates and sensitive lists. The draft of the paper would be submitted to the committee before December, so that it could be discussed in the Delhi meeting.

A separate meeting of BIMSTEC Task Force on Economic cooperation, held on September 9, decided to analyze the effectiveness and scope of the existing six areas of the bloc’s economic cooperation.
 
 
 
Nepal gets good response at fair in Kolkata
KATHMANDU, August 25

Nepal Tourism Board (NTB) participated in the 37th Travel & Tourism Fair (TTF), held at Kolkata from August 19 to 22.

The NTB stall was decorated with ethic Ashtamangal and traditional Jhallar with Mt Everest cutouts, which attracted visitors to the stall. NTB stall also provided detail information regarding accessibility, air/surface routes and tourist attractors of Nepal, distributing promotional collaterals. More than 30,000 visitors and 5,000 trade visitors visited the NTB Stall. The for day long TTF Kolkata had over 200 participants from 22 states and seven countries, that included Malaysia, Bangladesh, Bhutan, Norway, Indonesia and Thailand.

Considering the interest shown by various film producers from Kolata for filming in Nrpal, NTB organized a special ‘Nepal evening’ to initiate exposure to Nepal as a beautiful filming locale.
 
 
 
Indo-Nepal trade unhindered: CLL
NEW DELHI, August 25

Barring temporary disruption to the operations of a couple of Indian joint ventures in Nepal, the Maoist threats there seem to have no adverse impact on trade between the two countries. With the border between India and Nepal allowing for free trade , goods are moving without disruptions between the two countries by Bihar, Uttar Pradesh, and West Bengal. Around a dozen Indian companies , including Indo-Nepal joint ventures , are operating in Nepal, through illegal channels.

FICCI said that barring reports of some of the companies like Dabur and ITC Ltd temporarily suspending operations due to Maoist threats, we have not received any intimation of any companies pulling out of Nepal. The Nepal government’s move to provide certain level of comfort and reassure Indian companies is certainly working to calm fears of any major losses. After temporarily suspending operations, almost all Indian companies have resumed activities.
 
 
 
Competition law to deter monopoly
KATHMANDU, August 5

Experts and business leaders said that the inking of the ‘Competition law’ is not sufficient, but its implementation and ‘checks and balances’, hold greater importance. The ‘competition law’ will enable small industries to compete equally with big industries.

An interaction programme on ‘Competition Law, Why and for Whom’,’ was organized jointly by Nepal Chamber of Commerce (NCC) and South Asia Watch on Trade, Economics and Environment (SWATEE) in the capital.

After Nepal has become a member of the World Trade Organization (WTO) , it is expected that foreign direct investment (FDI) will grow . Huge resources can submerge small firms of Nepal if there is no law to force them compete fairly. The competition law will play a role to promote the ability of domestic enterprises. It will also provide benefits to consumers by giving them access to a wide variety of quality goods and services at the lowest possible prices and enhanced choices. The law would restrain trade malpractices.

 
 
 
Developing countries upset traditional powerplay at WTO
GENEVA, July 29

Led by Brazil, developing countries are continuing to upset the traditional powerplay in global trade talks.

The G20 group of developing countries, which includes India an China, raised the issue of domestic support for farmers in the United States. Developing countries blame domestic support, as well as export subsidies for distorting world trade and pricing their farm produce out of world markets.

Industrialized countries are also being pilloried by the G90 group of poor countries, who are demanding an end to US subsidies for cotton farmers. Until they find some concessions, the G90 and some G20 countries are refusing to place access to their markets or lower import tariffs on negotiating table.

African countries will not sign a compromise agreement unless it takes account Benin’s demand that Washington dismantle cotton subsidies more quickly. For years diplomats from other countries had been encouraging poor countries had been encouraging poor countries to form a united front in the WTO.

The tie between the G20 and the generally poorer g90 countries which are also trying to protect the preferential treatment offered by bilateral agreements with wealthy countries, might also appear to be fragile.