"The government has not been able to implement its policy of increasing exports to China," Buddha Raj Basnet, a merchant trading Chinese goods, said.
Nepali government inks various agreements with the Chinese counterpart, but they are hardly followed, Basnet added. "Nepal has also failed to take benefit of zero-tariff facility that China has provided on exports of Nepali goods," he further said.
Speaking at a program on ´Status and Challenges of Nepal-China Bilateral Trade´ jointly organized by the Ministry of Commerce and Supplies (MoCS) and the Sindhupalchwok Chambers of Commerce and Industry (SCCI), Basnet said that Nepali goods with comparative advantage have not been included in the zero-tariff list.
China has provided zero-tariff facility on exports of 7,787 goods to all least developed countries, including Nepal. Basnet further said that the goods entitled to zero-tariff facility are not highly demanded in China.
Businessmen have also complained that local Chinese government bodies do not allow Nepali traders to export Nepali rice which is highly demanded there.
"They allow us to export but only in small amount," Basnet said. "When we attempt to export large quantity of rice, Chinese officials question Nepal´s quarantine standard."
Shanta Pokharel, a section officer at the Food Quarantine Center in Tatopani, said that Nepali officials have difficulty discussing problems faced by Nepali traders with Chinese counterparts because of language barrier.
Businessmen have also said that the transport connectivity and unnecessary security checking on the Araniko Highway were other major problems that were hindering exports of Nepali goods to China.
"It takes almost four days to take a container from Kathmandu to Tatopani, and there are 11 security check points on just 114-km highway," Basnet said. Besides, landslides block many segments of the highway during monsoon, which virtually brings trade with China to a complete halt.
Pokharel suggested that the government introduce the system of sealing containers to cut down security checkings on the highway.
According to Mimans Adhikari, chief of the Tatopani Customs Office, Nepal imported goods worth Rs 14.67 billion from China so far this fiscal year, while exporting goods worth mere Rs 1.33 billion to the northern neighbor.
"Chinese officials have asked us to improve our quarantine standard so that they can let us export Nepali products without any hindrance," Adhikari said.
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