The largest customs point in the northern part of Nepal stated that total trade deficit with China crossed Rs 6 billion in the first nine months of the current fiscal year 2009/10. Total imports through Tatopani customs has been recorded at Rs 6.49 billion whereas exports to China reached Rs 276 million during the period. [break]
Customs officials said lack of sincere implementation of bilateral trade agreements, flooding in of Chinese domestic goods at cheaper prices, higher customs for expensive goods and decreasing number of Nepali traders are the major causes behind the yawning trade deficit with China.
“Slack in Nepali exports as compared to imports from China has led to an ever increasing trade deficit,” Chudamani Devkota, chief of Tatopani customs, told Republica.
Nepal´s trade deficit with China was recorded at Rs 7.18 billion during fiscal year 2008/09 when imports totalled Rs 8.95 billion against exports of Rs 1.76 billion. During fiscal year 2007/08, goods worth Rs 4.98 billion were imported and goods worth Rs 579 million exported, leaving a trade deficit of Rs 4.4 billion.
Major exports to China are clothes, medicinal herbs, gold-plated ornaments, chocolate, incense stick, soap, detergent powder, vegetables ghee, fat, wheat flour, noodles, handicrafts, and copper and aluminium plates. Nepal has been importing readymade garments, decorative goods, electronic gadgets, apple, garlic and mountain goats, among other items, from China.
Rajendra Kumar Shrestha, president of Sindhupalchowk Chamber of Commerce and Industry, said the volume of Nepali goods exported to China dwindled as China failed to implement the understanding reached between the two countries three years back on providing duty-free access to 1,505 items from Nepal.
China has been raising customs on Nepali clothes, wheat flour and vegetable ghee, items which are enjoying impressive demands there. Nepali goods are losing competitiveness in the Chinese market where similar goods are available at cheaper prices. The Tibet administration has already imposed restrictions on imports of some Nepali handicrafts in an effort to ensure a market for domestic handicrafts.
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