Visiting Deputy Prime Minister and Finance Minister Bharat Mohan Adhikari and United States Trade Representative (USTR) Ron Kirk inked the agreement amid a function in Washington.[break]
TIFA has replaced the bilateral trade agreement that the two countries signed some 65 years ago. The agreement signed during Rana regime has become defunct. Although negotiations on TIFA were completed a year ago, the signing was delayed due to political instability in Nepal.
Kirk termed the new pact a landmark agreement, particularly as the two sides had not signed any trade agreement since 1947.
“The United States looks forward to deepening its relationship with Nepal and breaking down any and all barriers that may prevent our producers, exporters and ranchers from selling their products in Nepal,” he stated.
Among others, TIFA provisions a permanent body to hold regular meetings on issues of bilateral trade and investment at least once a year, thereby serving as a forum for bilateral talks to enhance trade and investment and discuss specific trade issues.
It also paves way for the promotion of more comprehensive trade agreements between Nepal and the United States.
The new agreement promises preferential entry facility to the Nepali products, however, mere signing of the agreement will not help country increase its exports to the US. “We must have products that can be competitive in the US market to attain the desired trade growth,” Commerce Secretary Purushottam Ojha told Republica.
DPM and FM Adhikari requested the US to support Nepal in expanding its export basket, particularly at a time when the country´s exports has been in wane over the past one decade.
Experts, meanwhile, opined that Nepal can meaningfully take benefits from the new agreement if it signed Treaty on Avoidance of Double Taxation and Investment Protection Agreement with the US.
TIFA has seven articles. Of them, article 2 and 3 are important, said Dr Shankar Sharma Nepali Ambassador to the US.
Article 2 of the agreement provisions formation of Nepal-US Trade and Investment Council (NUSTIC) led by Commerce Secretary from Nepal and senior official from USTR. The council will meet at least twice a year in Nepal and the US alternatively and work to eliminate trade related barriers.
Likewise, in Article 3, the US promises to provide support to Nepal to remove trade related barriers. The agreement also says the two countries will work together with the private sector and civil society to promote bilateral investment. It also has provisions on protection of intellectual property rights and expansion of service trade.
The two sides had formalized the NUSTIC soon after the agreement was signed and convened its first meeting on the day. Nepali Commerce Secretary Ojha and Deputy USTR Demetrios Marantis had led the meeting from the two sides respectively.
During the meeting, Nepal requested the US government to include 11 commodities of Nepal´s export interest like cotton towels, cotton shirts, jacket and woolen sweat shirts in Generalized System of Preferences, so that those commodities could enjoy duty free market access.
Nepal had also requested the US to pledge assistance for capacity enhancement of Nepali private sector, so that they could effectively engage in bilateral trade. The Nepali team had also sought US government´s support for the registration of trademarks of Nepali products and opening an exhibition house in Washington.
“The US side has responded positively to our requests,” said Ojha. He further stated that the next meeting of the council will be held in Kathmandu in November this year.
Donors assure $144m for risk minimization
WASHINGTON (REPUBLICA) - Donors at a meeting on Probable Risk Minimization held in Washington have assured Nepal all assistance that it sought for minimizing the risks of natural disaster.
During the meeting, Nepal had requested an assistance of US$ 144 million to deal with such risks. The meeting was attended by chief of US Agency for International Development (USAID) Rajib Shah, Minister of State for Department for International Development (DFID) Alan Duncan, senior officials of the Asian Development Bank and United Nations Development Programme, among others.
DPM Bharat Mohan Adhikari and senior government officials had attended the meeting from Nepal.
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