Traders call for timely move to retain US preferential facility

By A Staff Reporter,Kathmandu, Sept. 10: Trade and policy stakeholders have stressed on making timely moves to retain the trade preference provided by the United States of America (USA) after the major earthquake hit Nepal in 2015. 

The USA had provided zero-tariff facility to various 77 Nepali products under Nepal Trade Preference Programme in 2016 with a decade-long timeframe. 

Speaking at a dialogue on 'US-Nepal Trade and Investment: Prospects and Challenges' organized in the Capital on Monday, they said that Nepal should make preparations for the 

upcoming meeting of Trade and Investment Framework Agreement (TIFA) to retain the facility even after Nepal graduates to a 'developing' nation from the Least Developed Country (LDC). 

The dialogue was jointly organised by the Federation of Nepalese Chambers of Commerce and Industries (FNCCI), Garment Association of Nepal (GAN), Federation of Export Entrepreneurs of Nepal (FEEN), Nepal-USA Chamber of Commerce and Industry (NUACCI), and USAID.

Ganesh Parajuli, a lawmaker and entrepreneur, said that there have been positive developments in terms of obtaining preferential treatment for Nepali products in the USA.

Secretary at the Ministry of Industry, Commerce and Supplies, Krishna Bahadur Raut, said that the USA has been extending various trade and business facilities to Nepal considering its LDC status. 

"Maintaining US preference to Nepali products is an important issue on the pretext that the country's trade imbalance has been ever growing which also has severe repercussions on foreign currency reserves," he said. 

According to Raut, the government and Industry Ministry are serious about the demands and concerns of the entrepreneurs and exporters and would put their efforts to address them. 

President of the FNCCI, Chandra Prasad Dhakal, stressed on timely advocacy of Nepali products' duty-free and seamless entry to the US markets and use of upcoming TIFA meeting to raise the concerns of entrepreneurs and the country. 

"The USA is the second key trade partner of Nepal. The NTPP has provided duty-free entry of 77 Nepali products to the USA but we have not been able to export the goods to the desired quantity. So we need to lobby to include the products having high potential on the list," he said. 

According to him, Nepal has largely failed to reap benefits from the NTPP. 

Pashupati Dev Pandey, President of GAN, said that the stakeholders' dialogue was organized to solicit suggestions and critical views from the business community and policy makers. 

Trade preference is our issue, it has a direct impact on business, employment and foreign currency earning, he said. 

Executive Director of the Trade and Export Promotion Centre, Sharad Bikram Rana, said the issues raised by the producers and traders would be covered in the bilateral discussion during TIFA meeting.