KATHMANDU, Sept 22: The USA has responded positively to extend the deadline to provide duty-free facility to Nepal for its 77 specified products exported to the USA which is about to end next year.
In the 7th Nepal-USA Trade and Investment Framework Agreement (TIFA) Council Meeting which concluded on September 16, the world’s largest economy expressed its willingness to extend the benefits that it has been providing to Nepal since the past one decade.
Nepal signed the TIFA with the USA on April 16, 2011. Last time, the TIFA meeting was held on May 19, 2023 in Kathmandu. Under the provision, the two countries had agreed to hold the TIFA council meeting every year.
Privileged, not so privileged
By enacting its Trade Preferences Act (TPA) in 2015, the US through Nepal Trade Preference Program (NTTP) has been providing duty-free access to 77 Nepali products. Nepal has been offered the facility until December 2025. Traders have been demanding the government to lobby for extending the facilities for a longer period.
The goods include certain carpets and pashmina, headgear, shawls, scarves and travel items. However, traders have been complaining that the facility offered by the US is of the least use as the privileged basket of goods does not include the major export items in which Nepal has high comparative advantage.
Chandra Prasad Dhakal, president of the Federation of Nepalese Chambers of Commerce and Industries, said they have been seeking the US government’s favor to allow duty-free and seamless entry for the high potential Nepali products in the US market.
Officials of the Ministry of Industry, Commerce and Supplies (MoICS) said that the US authorities in the TIFA meeting were positive on extending the bilateral economic relationship with Nepal. “They responded positively to the Nepali side’s concern over revising the lists of products under the duty-free facility while extending the period even after the prescribed expiry date,” said Baburam Adhikari, spokesperson for the ministry.
MoICS Secretary Gobinda Bahadur Karkee led the 17-member Nepali team in the 7th TIFA Council Meeting while Brendan Lynch, assistant United States Trade Representative for South and Central Asia led an 11-member US team. The discussions focused on policies related to agriculture, labor rights, digital economy, trade in services, technical barriers to trade, intellectual property protection and enforcement and information sharing, among others.
Meanwhile, the USA welcomed Nepal’s confirmation of no restriction on imports of US pork and poultry to Nepal. The country stressed the importance of allowing global reinsurers to participate in the Nepali markets to share best practices and ensure sufficient geographical diversification of risk.
Both the countries have agreed to conduct the 8th TIFA meeting in 2025 in the USA.
