National sector export strategies and NTM survey on cards

Ministry of Commerce(MoC) and International Trade Centre (ITC), Geneva are working jointly to develop Sector Export Strategy(SES) of 4 products and conduct a large-scale survey on exporters’ experiences with Non-Tariff Measures (NTMs) in Nepal and destination markets. These products have been selected from the Trade Policy 2016 and Nepal Trade Integration Strategy NTIS 2016.
The ITC team accompanied with the focal point Mina Aryal from the ministry and the two navigators Dr Pradyumna Pandey from Ministry of Agriculture Development and Bimal Nepal from Trade and Export Promotion Centre (TEPC) presented the preliminary results of the sector consultations and NTM Business Survey today.
While chairing the programme, officiating secretary of the Ministry of Commerce Toya Narayan Gyawali said that development of Sector Export Strategy and survey on Non-Tariff Measures are in line the trade policy 2016 and these initiatives are instrumental to enhance Nepal trade capacity building and competitive strength which have positive impact in socio-economic prospects of Nepal.
To develop export strategy in a participatory way, 4 stakeholders consultations were already conducted as part of the first phase of the SES design process between June 20 and June 30 in different regions including Jhapa for large cardamom, Ilam for tea, Pokhara for coffee and Kathmandu for handmade paper and paper products. The stakeholder consultations in the districts were managed by the Trade Export Promotion Centre in close coordination with the Ministry of Agriculture Development. Some 120 representatives from various government agencies, private sector and development partners took part in the different consultations.
The consultation meetings presented the stakeholders with an overview of the strategy design process, analysis of the sector specifics, including production, international market dynamics, and markets requirements. It also initiated discussions on the major issues to be addressed as well as define core teams to work for the second phase of the strategy design process. The results of the in-depth participative diagnostic will serve to develop the national export strategies documents and to design detailed plan of actions for the next five years.
The consultation identified some key critical export constraints concerning supplies capacities and the business environment. They also discussed on market entry issues like non-tariff and para-tariff measures' barriers.
The discussions have helped build consensus around the opportunities and challenges of the private sector, as well as the public sector support services. "We have discussed at length our respective constraints to export large cardamom and identify new opportunities to develop our sector," said Nirmal Bhattarai from Large Cardamoms Entrepreneurs Association of Nepal during consultation in Birtamod. "We are looking forward the core team meeting to develop the plan of action with ITC assistance," he added.
Similarly, president of Nepal Handmade Paper Association Mohan Khrishna Manandhar, on the occasion, said the consultation had helped build momentum for concerted action. "The interactions between the various actors of the public and private sectors helped build agreement on common challenges and need for a national sector strategy to develop the handmade paper sector," he added.
The second initiative, the NTM Business Survey has interviewed over 350 Nepali exporters on the difficulties they face with regulatory and procedural obstacles to trade. Initial findings of the survey show that SPS/TBT requirements of destination markets and the related conformity assessment requirements like testing and certification are the main concerns of companies – especially those exporting agricultural products. Lack of adequate testing and certification facilities in Nepal has made exporting difficult for companies due to higher cost and additional time required for testing abroad, the participants noted. The NTM business survey will continue until August with a target of covering 600 companies. The survey results will feed into the SES development process.
The SES document will be a common principle document for public and private sector. Product specific market constraints related to export to India expressed during the consultations were been transmitted to the MoC to incorporate in the agenda of the recent bilateral meetings between Nepal and India at the secretary level," according to focal person and under-secretary at the Ministry of Commerce Mina Aryal.
The SES design process will produce a set of four endorsed, coherent and comprehensive documents that will serve as action-oriented blueprints for enhancing trade performance in each sector.
The ITC is the joint agency of the World Trade Organisation (WTO) and the United Nations (UN). The ITC assists small and medium-sized enterprises (SMEs) in developing and transition economies to become more competitive in global markets, thereby contributing to sustainable economic development within the frameworks of the Aid-for-Trade (AfT) agenda and the Sustainable Development Goals (SDGs).

US President Obama signs Nepal trade preferences bill, export not easy task

Nepali readymade garment has officially received duty-free facility in the US market as the US president Barack Obama yesterday signed a legislation.
The bill, which was endorsed by the US Senate in the second week of December, paves the way for some 66 types of Nepali exports, including manufactures of apparels, certain carpets, headgear, shawls, scarves, and travel goods, to enjoy duty-free market access in the US. According to a statement of the US embassy in Kathmandu, the legislation authorising special trade preferences for Nepal grants duty-free tariff benefits for up to 66 types of Nepali items.
Now that the bill has received the president’s seal, it is reported that a team of the US International Trade Commission (ITC) will visit Nepal by mid-March to review the status of infrastructure and capacity of the country to utilise preferences extended by the world’s largest economy. ITC is an independent agency of the US that provides trade expertise to both the legislative and executive branches.
The Nepal programme is authorised for 10 years and designed to help Nepal's economy recover from the effects of the earthquakes that struck the country in 2015, according to the statement. After the new law comes into effect, Nepal will be able to enjoy duty-free facility on export of garments till December 9, 2025.
The programme grants duty-free tariff benefits for Nepali exports not currently eligible for benefits under the General System of Preferences (GSP), the largest and oldest US trade preference programme that provides duty-free facility in the US market.
The Nepal Trade Preferences Legislation also outlines a trade capacity building programme, focused on helping Nepal implement the World Trade Organisation's Trade Facilitation Agreement (TFA).
"This is a tremendous opportunity for Nepali business to expand their imports to US markets," US ambassador to Nepal Alaina B Teplitz was quoted in the embassy statement, adding that the US is looking forward to learning more about Nepal's plans for implementing the TFA and how the US government could contribute to this goal.
Howwever, certain administrative steps need to be completed in the US for the new trade preference programme to go into effect, the statement further added.
First, the president must certify that Nepal meets the eligibility requirements of the programme, which are the same as those for African Growth and Opportunity Act countries.
Secondly, the US is also required to request a review by the US ITC of the products covered by the preference programme to ensure that an increase in imports of these products into the US market will not negatively affect the US economy. These statutorily-required reviews will take several months to complete, according to the embassy.
Meanwhile, Nepali garment manufacturers have welcomed the US government move, saying that it will provide an opportunity to revive the industry. But they have asked the government to update Nepal's labour laws, provide uninterrupted power, and solve transit problems while exporting through India, along with facilitating soft loan to exporters to benefit from the US move.
According to president of Garment Association of Nepal (GAN) Chandi Prasad Aryal, the US market used to make up 85 per cent of the total exports of garments from Nepal. "The move could benefit Nepal, if the government took it seriously and provided necessary facilities to boost exports," he said.
The garment industry has today been squeezed down to only Rs 5 billion," he said, adding that it used to export Rs 13 billion worth garments right until 2001. In the fiscal year 2000-01, Nepal’s garment exports reached an all-time high of Rs 13.12 billion, with exports to the US accounting for 86.49 per cent. But the exports plunged after the US scrapped the quota system in 2005 as per the agreement on Textiles and Clothing (ATC) of the WTO. The garment exports slumped to Rs 5.28 billion in 2014-15 and number of garment industries came down to around 50 from over 400 in 2000-01.
After the expiry of Multi Fibre Agreement (MFA), popularly known as quota phase out, in January 2005, the US government has been imposing around 17 per cent tariff on import of cotton apparels.
Aryal, however, said that the authorisation of Nepal Programme has addressed the demand of Nepali garment manufacturers, who had been lobbying for duty-free entry for Nepali products for over a decade. After the US move, the Nepali garments – that lost its ground after 2002 – will now be competitive in the US market.
According to Aryal, GAN has started homework to improve production capacity of domestic garment industry. But government facilitation is a key, he added.
Though, trade experts claim that only 40 per cent of the Nepali garments being exported to the US could be eligible for receiving the GSP, Nepali ready-made garment industry could reclaim its lost glory provided the government supports the industry wholeheartedly.

Koirala seeks ITC help to promote Nepal tea

Nepal has sought help from International Trading Centre (ITC) help to promote Nepal tea.

In a meeting with the ITC executive director Arancha Gonzalez, here in Bali – in the sidelines of ninth ministerial conference of WTO, today trade, commerce and supplies, and finance minister Shankar Prasad Koirala sought ITC's help in promoting Nepal tea that has international quality.

Hailing ITC's efforts to build capacity of the Nepali exporters, he asked the centre to expand the programme to the rural areas also.

After successful Constituent Assembly (CA) elections on November 19, the country will shift its focus to develop productive economy, Koirala added.

Gonzalez, on the occasion, committed to continue ITC support to promote Nepal's exports. She said the centre will continue its support for the development of pashmina industry and its export promotion.

Nepal has exported Rs 2.18 billion worth Pashmina shawl – out of the total Rs 77.35 billion export – in the last fiscal year 2012-13, according to the data from Trade and Export Promotion Centre (TEPC).

LDCs urge developed countries to facilitate trade

The Least Developed Countries (LDCs) asked developed countries for duty-free, quota-free market access and help facilitate trade.

Inaugurating the ninth Ministerial Conference of the World Trade Organisation (WTO) in Bali today, Indonesian president Susilo Bambang Yudhoyonourged the developed countries to facilitate trade with the LDCs.

Meanwhile, trade, commerce and supplies minister Shanker Prasad Koirala, said that the LDCs' negligible share in world services exports calls for targeted support measures in the terms of both providing market access and building capacity to trade in services.

Timely and effective implementation of the Services Waiver could be an effective instrument to enhance LDCs' share and increase their presence in the world services trade helping these countries better integrate into the world trade, he said, addressing the high level meeting on the operationalisation of the LDC Services Waiver organised in Bali today by the International Centre for Trade and Sustainable Development and other organizations.

Koirala highlighted that the waiver was developed in favour of the LDCs in recognition of their special needs and interest in export of services and concrete steps should now be taken to operationalise the decision. "LDCs should identify their priorities, needs and possibilities," he said, adding that LDCs' trading partners should design and effectively implement new trade preference schemes by making necessary adjustments in their regulatory frameworks. "The LDCs have undertaken works to develop a collective request and they expect announcements from trading partners of offers, during the high level meeting planned for next year, of trade preferences targeted to LDCs."

Services Waiver is the Ministerial Decision of 2011 which allows WTO members to offer preferential treatment to the services and services suppliers of LDCs without needing to accord similar treatment to non-LDCs.

Ambassador and permanent representative of Nepal in Geneva Shanker D Bairagi chaired the meeting, where ministers and other senior officials from LDCs as well as their major trading partners were penalist.

Earlier this morning, Koirala held a bilateral meeting with the executive director of the International Trade Centre Arancha Gongalez and discussed on the support Nepal has received and expects to receive in future from the ITC.

Heads of agency pledge to do more to support poorest countries to benefit from trade

The heads of agency of the Enhanced Integrated Framework (EIF) – Aid for Trade in action for Least Developed Countries (LDCs) – are meeting in Geneva today during the Fourth Global Review of Aid for Trade, to recommit to helping the world's poorest communities get more from global trading networks as the international community moves to a post-2015 development agenda.
The event will help to signal what now needs to be done to make sure that LDCs can channel their exports and growth to reach for more than a 1.1 per cent share of world trade.

The historic event is being hosted by the director-general of the WTO with keynote speakers, the administrator UNDP, secretary general UNCTAD and the under secretary general and high representative for the LDCs, LLDCs and SIDS, UNOHRLLS.
The chairs of the EIF Steering Committee and EIF Board will also deliver remarks. High-level representatives from across Least Developed Countries, development partners and other partner agencies will participate.

“The last few years have laid strong foundations,” WTO director-general Pascal Lamy said, adding that the EIF has a global reach extending to 49 LDCs and recently graduated countries.
Trade features in 90 per cent of LDCs' national development plans, including inNepal. “Supporting LDCs is a priority,” he said, adding that the WTO must show political support reaffirming its commitment and match leadership with investment in resources.
“UNDP considers the EIF programme a key platform for channelling support to LDCs in delivering the Istanbul Programme of Action of LDCs,” UNDP administrator Helen Clark said. “While a few countries have advanced, many others require support for mainstreaming trade and capacity development,” she added. “UNDP looks forward to discussions with partners to design and define delivery modalities for customised support."

“UNCTAD believes that the success of EIF is the litmus test of the effectiveness of aid-for-trade,” UNCTAD secretary general Supachai Panitchpakdi said, on the occasion. “Therefore it is important to ensure that the EIF programme delivers both in terms of supply-capacity building and the mainstreaming of trade in the national development strategies of LDCs,” he said, adding that in some ways, it is also a litmus test for the multilateral approach to supply-capacity building in developing countries through aid-for-trade assistance.
The EIF has allowed the Bank to respond to LDCs' trade-related needs in a coordinated manner, collaborating with multilateral agencies and donors working to address countries' most urgent needs, World Bank managing director Sri Mulyani Indrawati said. “Trade remains an essential component of economic growth and poverty reduction strategies and I would like to reaffirm our commitment to the EIF partnership."

IMF deputy managing director Min Zhu, noted that helping the Least Developed Countries take a more active part in global trade is critical for their growth and development. “The EIF heads of agencies meeting is an important opportunity to take stock and see how all contributing partners, within our respective institutions’ mandate and expertise, can coordinate this support,” she added.
“ITC is a 100 per cent Aid for Trade agency and fully committed to the EIF,” ITC acting executive director Jean-Marie Paugam said, adding that it it active in many LDCs with the EIF and ready to support each one of them in their project development for export promotion.

• The Enhanced Integrated Framework (EIF) is a global partnership between LDCs, Donors and International Organisations that support LDCs to be more active players in the global trading system by helping them tackle supply-side constraints to trade. In this way, the EIF works towards a wider goal of promoting economic growth and sustainable development and helping to lift more people out of poverty.
• The programme is currently working with 47 LDCs worldwide and two recently graduated countries, supported by a multi-donor trust fund, the EIF Trust Fund, with contributions from 23 donors. A high-level pledging event in 2007 set a funding target of US$250 million over five years – and both additional and on-going contributions are being sought. The purpose of the EIF is to: mainstream trade into national development strategies; set up structures needed to coordinate the delivery of trade-related technical assistance; and to build capacity to trade, which also includes addressing critical supply-side constraints.
• The EIF was built on the original Integrated Framework (IF) established in 1997 with the joint collaboration of six core Agencies working together with the aim of increased collaboration in Trade Related Technical Assistance (TRTA) for LDCs. The six core Partner Agencies are the International Monetary Fund (IMF); International Trade Centre (ITC); United Nations Conference on Trade and Development (UNCTAD); United Nations Development Programme (UNDP); World Bank Group (World Bank) and the World Trade Organisation (WTO). The United Nations Industrial Development Organisation (UNIDO) subsequently joined the EIF as an observer agency. The Executive Secretariat for the EIF (ES) is administratively housed in the WTO with the Trust Fund Management undertaken through the United Nations Office for Project Services (UNOPS).

An independent Mid-Term Review (MTR) of the EIF completed in November 2012 found that the EIF remains “highly relevant to the current trade and economic priorities of the LDCs”. It also concluded that the programme is effective, but effectiveness can still be increased; efficiency can be improved (due to design and the early stage of the programme); is likely to be sustainable, but still needs support; and that the programme is likely to deliver impact for LDCs.

WTO launches new ‘International Trade and Market Access’ interactive tool

The ‘International Trade and Market Access’ interactive tool, launched by the World Trade Organisation (WTO) recently, provides a new dynamic presentation for all WTO data on merchandise and commercial services trade as well as selected market access indicators from World Tariff Profiles, a WTO, ITC and UNCTAD co-publication. The tool consists of four elements — Trade Dashboard, Trends Dashboard, Tariffs Dashboard and Made in the World — for the easy access of data for member countries.
The Trade Dashboard reveals the leading traders by commodity group, sector and year. Data can be shown by country, by region or by economic grouping. The dashboard also shows the leading partners of selected countries.
Similarly, Trends Dashboard shows the evolution of trade between the selected country/region/economic grouping and a particular partner, whereas Tariffs Dashboard displays statistics on market access for goods by country or customs territory, using data from the latest edition of the World Tariff Profiles.
The Made in the World tool provides information on the WTO's participation in projects aimed at measuring and analysing trade in terms of value added.
The data is presented in the form of interactive maps, charts and data tables, using arrows and pop-up boxes to depict trade flows and to provide supplementary information.