KATHMANDU, Jan 12: Experts have stressed the need for a delicate balance between trade policies and environmental policies for a resilient and non-disruptive global supply chain that benefits all equally. The experts made such remarks during the opening day of the WCP Nepal 3rd Annual Conference on Climate Change and Trade Suitability in South Asia on Saturday.
Speaking at the inaugural session of the two-day conference hosted by WTO Chairs Program - Nepal at Kathmandu University School of Management in Lalitpur, speakers suggested moving forward to green transition by developing clean energy, establishing environmentally friendly technologies, digitalizing commercial services, strengthening ICT infrastructure and integrating the production of MSMEs in the e-commerce platform and move ahead in our journey to trade sustainability.
The event is being held in collaboration with WCP – India, Centre for Trade and Investment Law (CTIL), Indian Institute of Foreign Trade (IIFT), New Delhi, India and Faculty of Management, Purbanchal University, Biratnagar, Nepal.
“If the entirety of the economic ecosystem is not sustainable, trade sustainability is not an easily achievable goal. However, when it comes to the issue of trade sustainability, we are not only looking at the production but also the supply chain, conveyance, transportation system and the climate disruption caused by the extreme climate events,” said Professor Achyut Wagle, registrar at Kathmandu University and chair at WTO Chairs Program.
Cooperation for trade
Wagle added that Nepal has a huge hope on export of hydropower but looking at the impacts of climate change, there is reduced flow of water in the rivers. “It is time we should look for justice in trade and climate as our Himalayas are turning into black rocks and the pain within us should be able to move us rather passionately in the right direction of sustainability, that includes trade sustainability.”
Finance Minister Bishnu Prasad Paudel said Nepal is at high risk of climate change, and its impacts are clearly visible in the economic, social, and infrastructure development sectors, yet its role in contributing to climate change is negligible. Nevertheless, Nepal wishes to prioritize its efforts, within its available resources and means, towards reducing emissions and adapting to climate change.
“Given that South Asia is a significant contributor to agricultural production and trade, I believe it is essential to develop and enhance strategies for the effective implementation of Climate-Smart Agriculture to address the challenges already faced and those anticipated in the agricultural sector due to climate change,” said Paudel.
It is essential to take proactive steps towards upgrading trade-related infrastructure by incorporating new technologies to make it more resilient and progressive. “We must take more proactive measures in climate-friendly development processes, keeping in mind the disruptions to supply chains caused by recurring natural disasters such as floods, landslides, and earthquakes, which affect the infrastructure we have built with significant investment,” Paudel added.
Ram Prasad Subedi, Nepal’s permanent representative to the UN, Geneva and ambassador to Switzerland, underscored how Nepal faced the recent September floods adding valuable context to why climate change is such an urgent and significant issue. According to him, measures such as carbon pricing, regulations, subsidies and direct investment have served the purpose of limiting the impact of climate change to some extent.
Citing the WTO Trade Statistical Review 2023, Subedi said that one fourth of the world’s population is fulfilling its need with some exception through the imports of goods and services from the global market. Subedi said, “As two South Asian countries including Nepal and Bangladesh are scheduled to graduate from the LDC category in 2026, the continuation of some flexibility in WTO rules for some more years is necessary in order to make the graduation smooth, sustainable and irreversible.”
Dev Raj Joshi, joint secretary at the Ministry of Industry, Commerce and Supplies said that South Asia can transition to a low-carbon economy through green trade policies, sustainable supply chains and regional cooperation.
Professor James J Nedumpara, head of Centre for Trade and Investment Law and India chair of WTO Chairs Programme highlighted the need for regional collaboration to tackle global trade challenges and the necessity for a transition into a green economy as climate change has an impact on people from all around the world.
Xiangchen Zhang, deputy director general of the WTO, underlined the role of the multilateral trading system in mitigating absolute poverty. According to him, the capability of AI, precision farming and innovative water science to contribute to food security and sustainable agriculture could ensure a nourished and sustainable future.
