The essence of the WTO accession protocol rested on transparency, predictability and the rule of law, which are key pillars of good governance. A major purpose of the accession commitments was to help strengthen governance within the state.
The Government of Nepal recognised that technical integration and training are essential for reducing poverty. Trade policy reform, an enabling business environment, a stronger role for the private sector, the elimination of import licensing and quota restrictions, tariff reductions, the introduction of bonded warehouse and duty drawback systems, dry port and EPZ development, and the privatisation of enterprises were all identified, prioritised and treated as preconditions.
Implementing these commitments has supported Nepal’s broader development. Nepal identified areas for technical assistance in line with these priorities, including trade policy, trade promotion and facilitation, and trade negotiations. Specific needs included legal and policy development, institutional strengthening, improved adjudication and implementation, and the development of knowledge and information centres.
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The objectives of Nepal’s WTO accession were to promote trade, create an environment conducive to trading, expand the role of the private sector in utilising trade opportunities, and enable market access through enhanced product quality and diversification. Key technical assistance needs included strengthening the Ministry of Commerce and Supplies, improving customs administration and valuation, protecting intellectual property, developing and implementing policies, laws, rules and guidelines, improving decision-making by judicial and quasi-judicial bodies, training policymakers and implementers, building information systems, and integrating the private sector as a primary beneficiary of WTO processes.
Nepal’s WTO commitments aimed to improve governance and create a strong, predictable regulatory framework to transform the trade regime and enhance Nepal’s trading capacity. Historically governed through bilateral arrangements, Nepal’s entry into the WTO signalled a paradigm shift towards a multilateral trading system.
The accession workload reflected Nepal’s strong belief that trade is a vital tool for promoting development and positive societal change. Nepal is rich in natural resources, biodiversity and labour, yet poverty persists largely due to underutilised labour capacity and human resources. The country’s potential is significant, but realising it requires capital flows, technology transfer and a competitive services sector capable of accessing international markets. Nepal’s accession protocol acknowledged these realities and included commitments to facilitate capital, technology and competitive services to improve production quality and ensure market access.
The accession protocol assumed that major reductions in deprivation—key drivers of poverty, inequality and injustice—were achievable through global integration and technological advancement. It recognised the vital role of marketing institutions such as the Trade and Export Promotion Centre, and the importance of knowledge in helping Nepal benefit from a rules-based international trading system.
Nepal’s ability to benefit from international trade depends heavily on development parameters and timely technical assistance. The accession workload correctly identified these needs, which have been central to the benefits of WTO membership. It is anticipated that the commitments, if fulfilled beyond the initial deadlines of 2007 and 2013 (including TRIPS and related areas), would continue to create space for improved governance, development and poverty reduction through market mechanisms.
The author is former Deputy Executive Director of the Trade and Export Promotion Centre.
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