GAN is handing over its suggestions to the Ministry of Commerce and Supplies (MoCS) on Wednesday, ahead of the signing of Trade and Investment Framework Agreement (TIFA) in US on April 15.[break]
“Keeping in view the sharp decline in Nepal’s exports to the worlds’ largest market, we are suggesting the government to constitute a Market Access Committee or sub-committee that would be responsible for exploring measures for easier access for Nepalese exports there,” Uday Raj Pandey, president of GAN, told Republica on Tuesday.
TIFA, which is a forum to discuss and resolve trade and investment issues, also serves as political and legal commitment to enhance bilateral trade and investment, paving the way for full-fledged bi-lateral free trade agreement and investment agreement. Once signed, it is expected to give a new lease of life to Nepal´s trade with the US, which has been declining after the phase out of duty-free quota access for Nepali readymade garment (RMG).
A Nepali delegation led by Deputy Prime Minister and Commerce Minister Bharat Mohan Adhikari is leaving for the US on April 12 to sign the pact.
The MoCS is busy finalizing agendas for the agreement that is expected to pave the way for bi-lateral talks to boost trade and investment in the days to come.
The agreement has seven articles related to trade, investment and technical assistance. It provisions establishment of commerce secretary-level Nepal-US Council on Trade and Investment (NSCTI) as a permanent mechanism that will meet at least once a year to work out means and ways to expand trade and investment.
The first joint council meeting will assess the prevailing situation of the US General System of Preferences (GSP) to Nepal’s exports in relation to the preference coverage, preference utilization and erosion of the preference margins.
GAN has also urged the government to lobby for the approval of the petition of request for selected apparel products eligible for the GSP that GAN submitted to the United States Trade Representatives (USTR) through Nepalese Embassy in the US in 2010.
“Major issues of the agreement are to provide duty free access to Nepali goods in the US market and security of US investment in Nepal,” said a high level source at the MoCS.
Once signed, TIFA will replace bilateral Economic and Trade Agreement (ETA) that Nepal and the US had signed in 1947. This will pave the way for preferential facilities for Nepali exports in the US.
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