Nepal has biggest trade deficit with immediate neighbours

By Laxman Kafle Kathmandu, July 3: Nepal has conducted foreign trade with more than 165 countries of the world. With most of the countries where Nepal trades bilaterally, it incurs trade deficits.

According to the trade statistics of the Department of Customs, Nepal enjoyed trade surplus only with 29 of its 165 trade partner countries during the first eleven months of the current fiscal year 2021/22.

The country suffered heavy trade deficits with its major trading partners, resulting in a total trade deficit of Rs. 1,577.38 billion during the first 11 months of the current fiscal year.

In the meantime, Nepal’s exports grew markedly to Rs. 185.83 billion during the review period while imports soared to Rs. 1,763.22 billion.

According to the report, the country had trade surplus with Afghanistan, Algeria, Armenia, Azerbaijan, Bermuda, Cambodia, Central African Republic, Congo, Croatia, Denmark, Fiji and Ghana.

Likewise, Nepal had trade surplus with Guinea, Jamaica, Kyrgyzstan, Maldives, Malta, Mauritius, Micronesia Federated States, Monaco, Morocco, New Caledonia, Niger, Saint Helena, Senegal, Sierra Leone, Trinidad and Tobago, Yemen and Zambia.

But,  the surplus amount has remained too low to contain the ever-widening trade deficit of the country.

Nepal has made the higher trade surplus with Denmark followed by Cambodia. In the first 11 months of the current fiscal year, Nepal has made a trade surplus of Rs. 179.66 million with Denmark and Rs. 163.84 million with Cambodia.

During this period, Nepal exported goods worth Rs. 665.44 million to Denmark and imported goods worth Rs. 485.78 million.  

Nepal is exporting tea, handmade paper, packing containers and carpets and textiles to Denmark while milk, butter and cheese are being imported from there. 

Similarly, Nepal is exporting  Yarchhagumba, carpets and dog or cat foods to Cambodia while importing tobacco, medicaments of antibiotics and soap.

According to the statistics, Nepal enjoyed a trade surplus of Rs. 64.68 million with Algeria, of Rs. 52.5 million with Niger, of Rs. 24 million with Guinea, Rs. 22.3 million with New Caledonia and of Rs. 13.63 million with Afghanistan during the review period.

Nepal's trade with seven countries, including Armenia, Bermuda, Jamaica, Kyrgyzstan, Mauritania, Micronesia Federated States and Trinidad and Tobago has remained in surplus without imports from these countries.

Nepal exported goods worth Rs. 4.8 million to Armenia, worth Rs. 678,000 to Bermuda, worth Rs. 1 million to Jamaica, worth Rs. 3.1 million to Kyrgyzstan and worth Rs. 725,000 to Mauritania.

Goods worth Rs. 952,000 have been exported to Micronesia Federated States and worth Rs. 2.98 million to Trinidad and Tobago in the first 11 months of the current fiscal year.

During the review period, Nepal’s highest amount of trade deficit is with its close neighbours, India and China, the two biggest trading partners. 

Nepal’s trade deficit with India has reached Rs. 955 billion while with China it reached Rs. 243.47 billion.

During the review period, Nepal exported goods worth Rs. 145.9 billion to India while goods worth Rs. 1,100.9 billion were imported from there .

Similarly, goods worth Rs. 244.21 billion were imported while goods only worth Rs. 739 million were exported to China.

Nepal has the third biggest trade deficit with Indonesia at Rs. 46.21 billion

The county has trade deficit with United Arab Emirates at Rs. 43.53 billion, with Argentina at Rs. 37.19 billion, with United States at Rs. 31.76 billion, with Ukraine at Rs. 20.81 billion, with Malaysia at Rs. 16 billion, with Thailand Rs. 11.14 billion, with Bangladesh at Rs. 10.18 billion, and with South Korea at Rs. 8.43 billion.