Nepal-EU joint commission meeting discuss graduation from LDC, GSP

The 15th meeting of the Joint Commission (JC) between Nepal and the European Union (EU) discussed gamut of bilateral issues including graduation from LDC, GSP and investment promotion, in Kathmandu today.

A broad range of issues of mutual interest were discussed during the meeting, according to a press note issued by the Foreign Ministry.

Nepal and the EU are also celebrating the 50th anniversary of their diplomatic relations this year.

The meeting was co-chaired by foreign secretary Sewa Lamsal and deputy managing director for Asia and the Pacific of the European External Affairs Service of the EU Paola Pampaloni.

The two sides reiterated their commitment to work together in upholding democracy and human rights, promoting good governance, realising Sustainable Development Goals (SDGs), promoting investment, and coping against global challenges such as climate change.

The Nepali side, on the occasion, highlighted achievements and bottlenecks in the realisation of SDGs.

Likewise, the EU welcomed Nepal’s transition strategy to graduate from LDC status and expressed their commitment to continue their cooperation through the Multi-Annual Indicative Programme (MIP).

Nepal welcomed the EU’s MIP for the term 2021-2027. The Nepali side also appreciated the MIP for aligning with the plans and priorities of Nepal.

Nepal and the EU also reviewed the progress of EU’s development cooperation in various sectors.

The meeting acknowledged the sub-commission meeting on development cooperation held on March 6.

On regional and multilateral processes, Nepal and the EU also discussed about SAARC and BIMSTEC. The two sides underlined the importance of effective multilateral cooperation.

The EU praised Nepal’s contributions to UN Peacekeeping Operations, the press note reads, adding that Nepal and the EU reaffirmed their commitments to cooperate within the United Nations (UN), World Trade Organisation (WTO), and other global fora to promote effective multilateralism and the rules-based international order. "Human rights including social inclusion were also discussed at the meeting."

The Nepali side reaffirmed its commitment to upholding human rights and concluding transitional justice as soon as possible.

The EU expressed hope on the early conclusion of Nepal’s peace process. 

The two sides unanimously agreed that corruption, including money laundering and financing of terrorism, is a major impediment to sustainable development.

The EU took note of Nepal’s ongoing legislative efforts and underlined the importance of compliance and enforcement, the press note adds.

The EU commended Nepal’s remarkable strides on inclusive participation and women empowerment. Both sides praised the EU flagship action 'Empowered Women, Prosperous Nepal', launched last year by the EU and the Ministry of Women, Children and Senior Citizens of Nepal.

The EU commended Nepal for the child grant schemes and encouraged its expansion.

The EU also appreciated the achievements made by Nepal in its socio-economic transformation. The two sides appraised the recent developments in upholding the democratic processes and institutions, and stressed the important role of civil society and media for strengthening democracy and good governance.

"The Nepali side underlined their multiple vulnerabilities of natural disasters, exacerbated by the impacts of climate change, and discussed climate adaptation finance," it reads, adding that the EU complimented Nepal for its position on Climate Change and the ‘Mountain Agenda’ during COP28 and also on its ambitious goal of reaching net zero carbon status by 2045.

"The Nepali side expressed gratitude for the EU's generous assistance following the Jajarkot earthquake, in post-earthquake resilient reconstruction and recovery efforts, and appreciated the cooperative partnership in disaster risk reduction."

The two sides exchanged their views on bilateral trade relations, including the criteria for acceding to the Generalised Scheme of Preferences Plus (GSP+).

Nepal, on the occasion, also expressed appreciation for the exchanges under the Erasmus+ programme, and the scholarships offered for Erasmus Mundus Joint Master Degree programmes, including people-to-people contacts. 

The EU and Nepal underlined that air safety remains a key priority area in their bilateral relations. Nepal assured of addressing all observations of the EU’s assessment visit in September 2023, while the EU will support Nepal in this process. Both sides agreed to follow-up at technical levels.

The next Joint Commission meeting will take place in Brussels next year.

EU to provide Nepal Rs 289 million in humanitarian aid

The European Union (EU) is providing approved a €2 million (approximately Rs 289 million) aid package for the earthquake-affected people in Jajarkot and Rukum West districts.

“Following the earthquake that struck Nepal earlier this month, the EU has approved a €2 million aid package to bring relief to the most affected people, according to a press note issued by the EU Brussels. "The EU approved the aid package to provide shelter, access to clean water and sanitation, and healthcare, among other services to the survivors of the recent Jajarkot earthquake."

The support package includes €600,000 (Rs 86 million) financial aid for humanitarian partners already providing assistance in affected areas, the press note reads, adding that, in addition, €200,000 (Rs 28 million) has been allocated to the Nepal Red Cross Society, via the Disaster Response Emergency Fund (DREF) of the International Federation of Red Cross and Red Crescent Societies (IFRC). "The EU will also mobilise in-kind assistance from its European Humanitarian Response Capacity (EHRC), worth €1.2 million (Rs 173 million), which will include tents and winterisation kits that will be sent from the EU’s stockpile in Kuala Lumpur, to address the crucial shelter needs of vulnerable families whose homes were destroyed."

The latest funding comes in addition to the €2 million (Rs 289 million) already allocated to Nepal at the beginning of this year, with the goal of responding to natural hazards and strengthening disaster preparedness.

Meanwhile, EU Commissioner for Crisis Management Janez Lenarcic said that, like in previous disasters, the EU remains ready to help those most in need.

“This new aid package will provide shelter to people that have lost their homes and prepare them to face the upcoming winter, while helping with other pressing needs,” he said.

This new funding comes in addition to the already allocated to Nepal at the start of this year, with the goal of responding to natural hazards and to strengthen disaster preparedness, the EU note reads.

An earthquake measuring 6.4 on the Richter scale hit the hilly districts of Karnali Province -- Jajarkot and Rukum West -- leaving 153 dead and 363 others injured.

Government, stakeholders discuss actions and investment priorities for GRID

The World Bank and Finance Ministry convened a high-level roundtable meeting today on investment priorities and enabling policies to operationalise Nepal’s vision for Green, Resilient, and Inclusive Development (GRID).

Government officials and development partners including Asian Development Bank (ADB), France, Australia, UK, Republic of Korea, European Union (EU), Germany, Japan, Finland, International Monetary Fund (IMF), Norway, Switzerland, the United States of America (USA), United Nations (UN, World Bank Group, International Center for Integrated Mountain Development (ICIMOD), and Association of International NGOs; as well as representatives from civil society, the private sector, youth groups, and think tanks participated in the event and took stock of efforts to implement GRID since the government and development partners endorsed the Kathmandu Declaration on GRID in September 2021.

“Nepal formally adopted the integrated approach to green, resilient, and inclusive development, or GRID, as its national development vision,” said chief secretary Shanker Das Bairagi, on the occasion. "This approach can be an engine of sustainable growth, good jobs and livelihood opportunities, and resilience in the face of multiple risks.”

The Roundtable also reviewed priority actions in the government’s emerging draft GRID strategic action plan including managing land, water, and forests in a more productive, sustainable, and integrated way; equipping people with new skills and resilient livelihoods; greening urban development; scaling up water supply and sanitation, managing pollution and waste; scaling up renewable energy; boosting the sustainability and resilience of the transportation system; strengthening disaster risk management and financing; and enhancing social protection to be responsive to shocks, according to a press note issued by the World Bank.

“Green, resilient, and inclusive development is about lifting incomes, improving opportunities for all, and achieving growth in harmony with nature,” World Bank vice president for the South Asia Region Martin Raiser said, adding that the World Bank and development partners are fully committed to supporting Nepal's GRID priorities and we are excited to see the impactful outcomes of GRID unfold.

Nepal’s draft GRID strategic action plan defines an economy-wide shift to a GRID development path, and specifies a set of high-priority investments with ready financing and a set of priority policy commitments. The priorities in the strategic action plan derive from Nepal’s key development, climate, environmental, and sector strategies. Financing sources include public expenditure from the government, overseas development assistance, innovative financing such as carbon finance, and private sector investment.

The event also served to consolidate the GRID partnership led by the government, which has grown to 20 development partners. In addition, the event was a milestone for the government to begin consultations with provincial and local governments and other stakeholders on the emerging strategic action plan. "It is anticipated the strategic action plan will be further refined and finalized this year," the press note reads.

UN, IFC, Global Compact Nepal, and Nepse ‘Ring the Bell’ for gender equality

The United Nations (UN), International Finance Corporation (IFC), Global Compact Nepal, and Nepal Stock Exchanges (Nepse) partnered to jointly organise the third ‘Ring the Bell for Gender Equality’—an annual global event that highlights how the private sector can spur women's participation in the global economy and promote sustainable development.

The focus of the event this year is on promotion of gender equality in the technology and innovation sector, according to a press note issued by the UN.

By expediting gender equality, emerging and frontier markets stand to gain significant economic, environmental, social, and governance benefits, it reads, adding that the Sustainable Stock Exchanges Initiative reports that if women were to fully engage in formal labor markets, the global gross domestic product (GDP) would surge by $28 trillion.

The event kicked off with the UN Resident Coordinator designate of Nepal Hanaa Singer-Hamdy, chairperson of the Securities Board of Nepal (Sebon) Ramesh Kumar Hamal, Head of Office of the UN Women Nepal Navnita Sinha, Senior Asia ESG Advisory Lead of the IFC Nepal Kate Lazarus, Deputy Head of Cooperation, of the European Union (EU) in Nepal Eloisa Astudillo Fernandez, and founding president of Global Compact Nepal Sulochana Shrestha Shah jointly ringing the symbolic bell of the Nepse. 

Speaking at the event, the UN Resident Coordinator designate of Nepal Hanaa Singer Hamdy said, “Gender equality is a central force for realising the transformative promise of Agenda 2030, and women’s economic empowerment is both an enabler and prerequisite to make this promise a reality. As societies become increasingly dependent on digital technology, our sisters in Nepal face the risk of losing out on the promise of full participation in digital economies. We must bridge the digital divide, increase women’s digital and financial literacy, increase their access to finance and promote safe digital spaces.”

Under the UN Women’s theme for International Women’s Day this year: “DigitALL: Innovation and technology for gender equality,” the event was organised to spotlight the need for and importance of women involvement in digital finance for advancement in gender equality and achieve the SDGs.

"Empowering women to participate fully in the economy is not only the right thing to do, it is also smart business. By accelerating gender equality, emerging markets can unlock tremendous economic, environmental, social, and governance gains. At IFC, we are committed to supporting initiatives that promote gender parity," said Kate Lazarus, Senior Asia ESG Advisory Lead of the IFC Nepal. “It's truly heartening to witness the dedication of private sector in Nepal, as shown by the 19 power companies that are working with IFC's Powered by Women initiative to create a level playing field."

The event was organised to highlight the pivotal role the private sector can play in gender equality and women’s empowerment, to motivate women to engage in finance and to raise awareness among Nepali companies on the Women Empowerment Principles (WEPs).

“It is our great pleasure to be a part of gender equality initiation taken in the global level. Nepse is aware and is actively participating with different awareness programmes and models for women’s participation in the capital markets. Nepse is strongly determined to come forward with activities which assures the gender equality and fair participation of women in the capital market” said chief executive officer of Nepse Krishna Bahadur Karki.

Speaking at the event, the Deputy Head of EU in Nepal shed light on the significance of digitation for financial inclusion in Nepal. Likewise speakers of the Panel Discussion highlighted barriers that women face in investing in accessing finance such as attitudinal constrains, family obligation, gender stereotypes, infrastructural problems, and the need to create digital technology that responds to the need of women.

"It is important that private sector companies learn about Women's Empowerment Principles (WEPs) as they provide a framework to implement policies and practices that support gender equality. Ring the Bell 2023 introduces WEPs to a lot of private sector companies in Nepal. As of March 2023, there are 23 WEPs signatories in Nepal; we aim to at least double WEPs signatories within the next 12 months," said president of Global Compact Nepal Pradeep Man Vaidya.

Ring the Bell is a collaboration of stock exchanges around the world ringing opening or closing bells to celebrate International Women’s Day and promote the Women's Empowerment Principles (WEPs). In Nepal the initiative was a partnership between Global Compact Nepal (GCN), UN Women, International Finance Corporation (IFC), Nepal Stock Exchange (Nepse) and UN Resident Coordinator Office to raise awareness about the opportunities for the private sector to advance gender equality and sustainable development.

This year, a record 120 exchanges have participated in these events worldwide, from less than 10 exchanges in 2015.

UNICEF and Finland continue their partnership to support the education sector of Nepal

 Finland and UNICEF have signed a partnership agreement for the years 2023-2027. Finland is committing 4.2 million euros (approximately Rs 590 million) to UNICEF’s efforts in Nepal to enhance quality services for children, according to a press note issued by UNICEF.

Finland and UNICEF have been collaborating in the education sector in Nepal since 2019, and the agreed support is a continuation of this partnership.

At a ceremony held in Kathmandu today, the ambassador of Finland to Nepal Riina-Riikka Heikka and  UNICEF representative to Nepal Usha Mishra signed the partnership agreement for the years 2023-2027, on behalf of their respective institutions.

Finland is committing 4.2 million euros for the enhancement of quality services for children in Nepal, the press note reads, adding that Finland and UNICEF have been collaborating in the education sector since 2019 – the agreed support is a continuation of this partnership. “With the signed agreement, the partners reaffirmed their aspiration to strengthen inclusion and quality education for children in Nepal.”

The renewed partnership will focus on strengthening school readiness, foundational learning and inclusive education models, targeting particularly the most vulnerable children. “It also addresses those children who have been particularly hit by the Covid-19 pandemic or other disasters eg floods, in terms of their access to education participation and learning outcomes,” it claims, adding that the partnership also supports the new School Education Sector Plan (SESP) of the government of Nepal, to which both Finland and UNICEF are contributing.

“UNICEF is one of Finland’s long-term partners in Nepal,” Finland’s ambassador Riina-Riikka Heikka said, after signing the agreement. “The good relations are based on mutual understanding, common goals, common commitment and joint efforts to promote sustainable development in Nepal,” she said, adding that education is one of the key pillars of Finland’s Country Programme for Development Cooperation in Nepal. “We need strong partnerships in order to jointly strive for inclusive quality education.”

The strong and strategic partnership with Finland over the previous years has allowed us to continue supporting the Government in their pursuit of expanding access and improving the quality of public education in Nepal, so as to serve the children of the country, especially those left behind,”  UNICEF representative Usha Mishra said, after signing ceremony.

Lithuania extends support to Nepal to fight Covid pandemic

 A consignment of medical equipment and supplies from Lithuania to support Nepal fight the Covid pandemic was handed over today to the Ministry of Health and Population, according to a press note issued by the European Union office in Kathmandu.

The consignment was dispatched through the EU Civil Protection Mechanism, it reads, adding that the support of the 13 EU member states that have extended medical support to Nepal including Lithuania in the recent monthsis around Euro 12 million (Rs 1.7 billion).

Lithuania is one among the 13 EU member states -- Spain, Finland, France, Belgium, Germany, Slovenia, Austria, Malta, Denmark, Ireland, Italy and Hungary -- responding to Nepal’s call for assistance.

Nepal had appealed to the international community for support of medical equipment and supplies to fight a severe outbreak of Corona Virus on May 10.

The medical supplies contributed by Lithuania include 5 breathing machines (mechanical ventilators) and 20 oxygen inhalers from the state reserve, which is administered by the Ministry of Health of Lithuania, the press note further reads, adding that the total value of the humanitarian aid provided to Nepal amounts to almost Euro 50,000 (Rs 7.08 million). "Lithuania stands with the people of Nepal through these testing times," ambassador of Lithuania to Nepal Julius Pranevicius said, adding that solidarity and joint efforts are crucial in the fight against the pandemic.

Representative of the Honorary Consul to Lithuania, joined by charge d'affaires and deputy head of EU Delegation to Nepal Stephane Maicon handed over the equipment to chief specialist at the Ministry of Health and Population (MoHP) Deependra Raman Singh at a programme organised at the ministry today.

"The European Union and its member states have shown that they are indeed a very close friend of Nepal through the donation of life saving medical equipment and supplies during times of dire need," charge d'affaires and deputy head of EU Delegation to Nepal Stephane Maicon said, adding that the EU will continue to step up efforts to assist Nepal and its citizens in the days ahead enabling them to be healthier and safer.

Alongside other development partners, the EU has been monitoring the distribution and the use of the supplies across the country.

Italy extends support to Nepal to fight Covid pandemic

A consignment of medical equipment and supplies from Italy arrived early today morning to support Nepal fight the second wave of the pandemic through the EU Civil Protection Mechanism.

Italy is among the 12 EU member estates – Spain, Finland, France, Belgium, Germany, Slovenia, Austria, Malta, Denmark and Ireland – responding to Nepal’s call for assistance. More support is expected soon from Lithuania and Germany, according to a press note issued by the EU Office in Kathmandu.

"In these challenging times, Italy is at the frontline of the fight against coronavirus, as testified also by the Global Health Summit co-hosted with the European Commission in Rome last May 21st," ambassador of Italy to Nepal Vincenzo de Luca said, adding that in the framework of the EU Civil Protection Mechanism, this relief flight to Nepal is a sign of the support and solidarity of Italy towards the Nepalis friends. "Once more, the United Nations Humanitarian Response Depot (UNHRD) based in Brindisi, Italy, has proven to be a crucial logistic support to humanitarian airlifts everywhere in the world."

The relief equipment donated by Italy consists of 20 ventilators, 6000 isolation gowns and 10,000 protective overalls.

Honorary Consul to Italy Pratima Pande joined by the EU ambassador to Nepal Nona Deprez handed over the equipment to chief specialist from the Ministry of Health and Population (MoHP) Dr Roshan Pokhrel at the Tribhuvan International Airport (TIA). In a true Team Europe spirit, the ambassadors of Germany and France also participated in the ceremony.

"As long-standing friends and partners, the EU and its member states support Nepal during these difficult times," Nona Deprez said, adding that the medical supplies will help against the spread of Covid and alongside public health measures will help save precious lives across Nepal.

Alongside other donors, the EU will monitor the distribution and the use of the supplies across the country, the press note reads.

The recording of the quantity of supplies entering the country and quantities moving out from the Humanitarian Staging Areas in Sinamangal, is done in the e Logistic Management Information System (eLIMS) of Health Ministry.

Private sector suggests postponement graduation from LDC

The private sector has asked the government to postpone the graduation of Nepal to the Developing Country (DC) status from the current Least Developed Country (LDC) status.

Submitting a written recommendation to the Ministry of industry, Commerce and Supplies today, Federation of Nepalese Chambers of Commerce and Industry (FNCCI) president Shekhar Golchha said that Nepal should not hurry to graduate from LDC. If Nepal graduates from LDC, it will not be able to enjoy the benefits including zero tariff and grants from the development partners. The developing country will get loan, and it will also be exempted from zero tariff, provided for LDCs by India, China, US and the EU. “Nepal will also not receive any development grants, if it graduates,” he said,” asking the government not to hurry.

Earlier too, Nepal had postponed its graduation from LDC till 2021, though the country had met two of the three criterion that are necessary to graduate to graduate from LDC. Nepal had fulfilled two criterion – Human Assets Index (HAI) and Economic Vulnerability Index (EVI) – in 2015, which was enough for graduation. The HAI should be 66 or above, EVI 32 and below, and per capita income should be $1,222. Nepal’s HAI and EVI scores stood at 68.7 and 26.8, respectively, which was enough for graduation from LDC, though the per capita income was less. But writing a letter to UNDP, Nepal asked to postpone its graduation as the country wanted to graduate on the basis of per capita income, which is thought to be more sustainable graduation. 

Any country meeting two of the three criterion – HVI, EVI and per capita income – could be graduated from LDC, or a country can graduate, fulfilling only one criteria, if it has $2,444 per capita income.  Nepal’s per capita income currently hovers around $1,000 but in the changed context of coronavirus pandemic, there is a doubt that the per capita income even remains same, as some 6 million Nepalis lost their employment, during the lockdown imposed by the government – from March 24 for 120 days – and subsequent prohibitory orders aimed at containing the spread of Covid-19.

According to the latest UNCTAD report on LDCs too, the world economic crisis brought by the Covid-19 pandemic may affect the previously planned graduation of LDCs that is the exit of some countries from the group of LDCs. 

The LDCs that have better weathered the Covid-19 pandemic from a health policy perspective are those with a broader and more sophisticated base of productive capacities in their economy, the UNCTAD report reads, adding that more generally, the same reasoning also applies to their capacity to respond to other shocks like medical, economic or natural disasters. “Countries that have been able to develop a denser and more diversified fabric of productive capacities have shown greater resilience and have been better prepared to weather different types of shocks.”

The Covid-19 pandemic is estimated to contract the GDP per capita LDCs by 2.6 per cent in 2020 from already low levels, as these countries are forecast to experience their worst economic performance in 30 years, according to the UNCTAD report. “At least 43 out of the 47 LDCs will likely experience a fall in their average income,” it reads, adding that extreme poverty in LDCs is projected to expand by 32 million in 2020 to reach 377 million people. “The poverty rate will rise from 32.5 per cent to 35.7 per cent in 2020, due to the Covid-19-induced economic crisis.”

Meeting the criterion is not only enough for any LDC to graduate, but it also has to prepare a transition plan, so that it keeps sailing above, otherwise, the country could again demoted to LDC. Nepal also has to prepare a transition strategy as it will lose some preferential treatment.

According to a report prepared by the National Planning Commission (NPC) and the United Nations Development Programme (UNDP) also, the Covid-19 pandemic may have profound impacts on the graduation criteria, with new risks of rising trade and export costs impacting external markets, and the need for more concessional aid, including debt relief, to overcome multiple crises. With new impact analysis, Nepal also need to bring a transitional strategy.

Graduation from LDC status becomes effective three years after the United Nations General Assembly (UNGA) takes note of the recommendation made by the Committee for Development Policy (CDP) under the United Nations Economic and Social Council (UNESC) to graduate a country. Though, the government is in hurry to graduate Nepal, Nepal’s graduation will be effective in 2024, if the committee recommends graduation at its next triennial review in 2021. 

WHO, EU join together to support Covid-19 response and systems strengthening in Asia

 This week, the World Health Organisation (WHO) and the European Union (EU) agreed to join forces to support eight South East Asian countries in their response to Covid-19 and to strengthen preparedness for future pandemics.

The EU is providing €20 million for a South East Asia pandemic response and preparedness programme, according to a press note issued by the WHO, which will use the funds to continue supporting the governments of Cambodia, Indonesia, Lao People’s Democratic Republic, Malaysia, Myanmar, the Philippines, Thailand and Viet Nam.

“The European Union is one of WHO’s major partners, particularly in emergency response,” WHO’s Regional Director for South-East Asia Dr Poonam Khetrapal Singh said, adding that this partnership will go a long way in ensuring that the South-East Asian region builds back better during and after the Covid-19 pandemic and is stronger and more resilient in the years ahead.

In line with the Global Strategic Preparedness and Response Plan and guided by the Asia Pacific strategy for emerging diseases and public health emergencies (APSED III), the programme aims to strengthen health systems and to support the Covid-19 response in the eight South East Asian countries, with a particular focus on reaching the unreached.

The funds will be used to mobilise all sectors and communities to ensure participation in prevention, preparedness and response activities; control sporadic cases, clusters and community transmission;

Suppress community transmission; and reduce deaths from Covid-19.

The programme represents a joint effort between the EU and WHO’s regional offices for South-East Asia – which includes Indonesia, Myanmar and Thailand – and the Western Pacific, which includes Cambodia, Lao People’s Democratic Republic, Malaysia, the Philippines and Viet Nam. “To ensure that the interventions in each country will be in line with national priorities as outlined in the national response plans, each WHO region is working closely with the governments of those countries and other stakeholders, including civil society organisations,” it reads.

“These countries have spent more than a decade preparing for events with pandemic potential, by strengthening their health systems in anticipation of an event like the Covid-19 pandemic,” WHO’s Regional Director for the Western Pacific Dr Takeshi Kasai said, adding that this support from the EU will help to build on this work, so that countries across South East Asia are prepared for the next pandemic or health emergency event.

In addition, WHO will use the opportunity provided by the EU funding to engage with the Association of Southeast Asian Nations (ASEAN) which includes all eight countries in the programme, to enhance coordination among ASEAN member states and promote a regional approach for responding to Covid-19, where similar challenges are faced.

The contribution of the European Union (EU) is critical to WHO’s efforts to support countries in responding to the ongoing pandemic in South East Asia, and demonstrates its solidarity as well as its continued commitment to global health.

Global trade shows frail recovery in third quarter, but outlook remains uncertain

 UNCTAD estimates show a 5 per cent drop in world trade in the third quarter of 2020 compared to 2019, an improvement from the 19 per cent decline in the second quarter but insufficient to pull trade out of the red.

Global trade recorded a 5 per cent drop in the third quarter of 2020 compared with the same period last year, according UNCTAD’s new Global Trade Update published today. “This marks an improvement on the 19 per cent year-on-year plunge recorded in the second quarter, and UNCTAD expects the frail recovery to continue in the fourth quarter, with a preliminary forecast of -3 per cent compared with the last quarter of 2019.”

Depending on how the Covid-19 pandemic evolves in the winter months, the UN trade and development body expects the value of global trade to contract by 7 per cent to 9 per cent with respect to 2019. “The uncertain course of the pandemic will continue aggravating trade prospects in the coming months,” UNCTAD secretary-general Mukhisa Kituyi said, adding that despite some 'green shoots', it can't be ruled out a slowdown in production in certain regions or sudden increases in restrictive policies, according to the UN trade and development body.

Although a 7 per cent to 9 per cent decrease would be a negative finish for the year, Dr Kituyi highlighted that it’s a much more positive result than was expected in June, when UNCTAD had projected a 20 per cent year-on-year drop for 2020. Since then, trade trends have improved primarily thanks in to the earlier than expected resumption of economic activities in Europe and East Asia.

China has in particular restarted its economy much earlier than initially expected, and the report highlights the country’s notable trade recovery. Chinese exports, after falling in the early months of the pandemic, stabilised in the second quarter of 2020 and rebounded strongly in the third quarter, with year-over-year growth rates of almost 10 per cent.

“Overall, the level of Chinese exports for the first nine months of 2020 was comparable to that of 2019 over the same period,” the report reads, adding that Chinese demand for goods and services has recovered from the decline in the second quarter. “Contrary to other major economies, its imports stabilized in July and August and then grew by a substantial 13 per cent in September.”

Export growth in September was also recorded in India (4 per cent) and South Korea (8 per cent), the report reads. 

Likewise, the sharp and widespread decline in international trade in second quarter of 2020 was similar for developing and developed countries. But exports from developing economies appear to be recovering faster. Year-on-year growth of developing nations’ exports improved from -17 per cent in the second quarter to -6 per cent in July, while those from developed nations increased from -22 per cent to -14 per cent. And South-South trade – commerce among developing countries – has shown some resilience, with the year-on-year decline sitting at 8% in July, up from 16 per cent in the second quarter.

The report’s assessment of trade in different sectors reveals that the pandemic has hit the energy and automotive industries the hardest, while mitigation responses including teleworking and personal protection measures have led to strong growth in sectors such as communication equipment, office machinery, and textiles and apparel. But UNCTAD’s analysis gives special attention to Covid-19 medical supplies, which include personal protective equipment, disinfectants, diagnostic kits, oxygen respirators and other related hospital equipment.

According to the report, exports of Covid-19 medical supplies from China, the European Union (EU) and the United States (US) rose from about $25 billion to $45 billion per month between January and May 2020. And since April, trade in such products has increased by an average of more than 50 per cent. “The increase in such trade, however, has primarily benefited wealthier nations, with middle- and low-income countries largely priced out from access to Covid-19 supplies,” the report says.

Since the outset of the pandemic, each resident of high-income countries has benefited on average from an additional $10 per month of imports of Covid-19 related products, compared with just $1 for people living in middle-income countries and a mere $0.10 for those in low-income countries. This means that per capita imports of medical goods essential to mitigate the pandemic have been about 100 times higher for wealthy countries than for poor nations.

“While it should be expected that the increase of per capita imports of Covid-19 products would be larger for wealthier countries, the sheer difference is staggering,” the report reads, warning that if a Covid-19 vaccine becomes available, the access divide between residents in wealthy and poor countries could be even more drastic.

Newly appointed EU envoy presents credentials to President

 Newly appointed ambassador and head of the Delegation of the European Union (EU) to Nepal Nona Deprez today presented her credentials to President Bidya Devi Bhandari, at a function held at the President’s Office.

“I am extremely honoured and happy to take up my duties as the EU ambassador to Nepal and look forward to discover the country, to meet the Nepalese and to work closely with all Nepali institutions, civil society, private sector, media, international partners and all relevant political, social and economic stakeholders,” ambassador Deprez has been quoted in a press note issued by the Delegation of the EU to Nepal.

Nepal and the EU have developed more than four decades of diplomatic and friendly relations, the ambassador said, stressing the need to work jointly on global issues in the wake of new challenges such as pandemics, climate change and threat to multilateralism has become an urgency.

The EU has been a reliable development partner and one of the biggest donors to Nepal for around half a century. 

The Delegation of the EU to Nepal – in the press note – said that EU has been cooperating on three priorities agreed with the government of Nepal: rural development, education and finally democracy and decentralization. “Furthermore, the EU supports Nepal in achieving the Sustainable Development Goals (SDGs), in graduating from LDC status and in improving Nepal’s resilience to the adverse effects of climate change,” the Delegation of the EU to Nepal claimed, adding that the total assistance for the current programming cycle – 2014 to 2020 – amounts for Euro360 million, which is around Rs 50 billion. “When the Covid crisis hit Nepal, the EU provided immediate response in mobilising a package of Euro75 million, which is Rs 10 billion.”

The support was closely coordinated with the EU member states working as one in a streamlined ‘Team Europe Initiative’. The EU also helped raise Euro16 billion globally to finance research on vaccines, tests and treatments for the whole world.

World Bank $10.85 million additional grant to support learning and build resilient education sector

 Nepal and the World Bank today signed a financing agreement for an additional grant of $10.85 million to the School Sector Development Programme (SSDP) to maintain access to basic education and continued learning for children amid the Covid-19 crisis.

The government’s SSDP is a sector-wide program supported by IDA credit of $185 million, together with support from Asian Development Bank (ADB), European Union (EU), Finland, Global Partnership for Education (GPE), Japan International Cooperation Agency (JICA), Norway, USAID, UNICEF and REACH Multi-Donor Trust Fund administered by the World Bank. The programme aims at improving the quality, equitable access, and efficiency of basic and secondary education in Nepal.

The additional grant from the GPE Covid-19 Accelerated Funds will contribute to the implementation of the Ministry of Education, Science and Technology’s Covid-19 contingency plan to mitigate and respond to the potential impacts of the pandemic on the education sector.

The agreement was signed by the Joint Secretary at the Finance Ministry Shreekrishna Nepal on behalf of the government of Nepal and by the World Bank country director for Maldives, Nepal and Sri Lanka, Faris Hadad-Zervos.

“We are thankful to the World Bank and GPE for the additional grant that will help mitigate learning loss for children due to the impact of Covid-19,” Nepal said, adding that the grant provides much needed support to the government to respond to the impacts of the pandemic to enable continuity of learning during school closures, enable schools to safely resume and mitigate the impacts on students and teachers, including loss of learning time and psychosocial impacts.

The additional grant will finance activities to support remote learning programmes through television, radio and the learning portal as well as printed learning packs for children who do not have access to media or internet. The grant will support communication campaigns and teacher professional development programmes and help strengthen the Education Management Information Systems. The grant will also support provincial and local governments to support safe reopening of schools and continued learning of children.

“The education sector in Nepal and across the world has been one of the hardest hit owing to the pandemic which has deeply affected learning outcomes for children”,  World Bank country director for Maldives, Nepal and Sri Lanka Faris Hadad-Zervos, said after signing ceremony. “While supporting the immediate needs for safeguarding access and learning for children, especially girls, the additional grant will support the broader resilient recovery efforts of the government and help build back better the education sector in Nepal.”

EU provides €1.65 million to support victims of the devastating South Asia floods

 In response to severe flooding that have affected South Asia – most notably Bangladesh, India and Nepal – the European Union (EU) is providing €1.65 million in humanitarian aid funding.

The support comes on top of the €1.8 million announced earlier this year to support families affected by a series of disasters, including Cyclone Amphan that ravaged India and Bangladesh in May, bringing the total EU support to victims of disasters in the region to €3.45 million.

The flooding has affected some 17.5 million people, wiping out homes, livelihoods such as livestock and agricultural lands, and destroying vital infrastructure including roads, hospitals and schools. 

“The monsoon rains across South Asia have been particularly devastating this year and this urgent contribution will help our humanitarian partners on the ground in providing crucial support to those who have lost their shelters, belongings and sources of livelihood,” said Taheeni Thammannagoda, who oversees EU humanitarian programs in Asia and the Pacific. “Focusing on the worst affected countries, we are providing the means for people to survive through this difficult time so that they can get back on their feet as soon as possible.” 

Out of the total funding, €1 million will be dedicated to addressing the urgent humanitarian needs in Bangladesh, where over two million people are in need of food assistance, water, sanitation, hygiene and emergency shelter. Some 850,000 remain displaced, a figure expected to increase as rains continue. 

A further €500,000 will be used in India to provide food and livelihood assistance, emergency relief supplies, and water and sanitation services. So far, this year’s monsoon rains have impacted at 10.9 million and has amplified people’s vulnerabilities as they struggle to tackle the consequences of the global coronavirus pandemic. 

In Nepal, €150,000 will be used to address the pressing need for water and sanitation, shelter and essential household items following the displacement of thousands of people after the rains unleashed devastating landslides across the country. 

The funding is part of the EU’s Acute Large Emergency Response Tool (ALERT). Measures to prevent the spread of the coronavirus will be incorporated in all programming.

With the onset of the annual monsoon in June, heavy and sustained rains have caused massive floods and landslides across South Asia, killing hundreds and affecting over 17.5 million people. The disaster has decimated people’s livelihoods and food resources. The poor access to clean water risks increasing the spread of disease - especially worrying during the coronavirus pandemic.

The European Union, along with its member states, is the world’s leading donor of humanitarian aid. Through its European Civil Protection and Humanitarian Aid Operations (ECHO), the European Union (EU) helps over 120 million victims of conflicts and disasters every year. The acute large emergency response tool (ALERT) is used to respond to large natural disasters where over 100,000 people or over 50 percent of the population are affected. Depending on the type of disaster, the aim is to allocate funds within 24 to 48 hours of the onset of the emergency.

Nepal Airlines Corporation grounds all its Chinese aircraft

The national flag carrier has, finally, grounded all its six Chinese aircrafts – from today – citing operational loss.
“Two aircraft had been already grounded earlier and the remaining four have also grounded from today,” Nepal Airlines Corporation (NAC) spokesperson Archana Khadka confirmed, adding that the NAC will, now onwards, be operating its two Twin Otter aircraft for domestic flights. “We have submitted a letter to the Ministry of Culture, Tourism and Civil Aviation (MoCTCA) to do the needful with the four aircraft that were grounded today.”
As the government has the entire ownership of those all aircraft, the NAC has handed over the responsibility to the ministry, which will now take further decision on what to do with these aircraft. The grounded Chinese aircraft could be returned or sold to other airlines company.
NAC had received one MA60 and one Y12E aircraft on aid from the Chinese government, whereas bought one MA60 and three Y12E from Chinese aircraft manufacturer Aviation Industry Corporation of China (AVIC International Leasing) to fly them on the domestic routes.
“The corporation’s board decided to ground all the aircraft, as all the six aircraft were not able to make any profit,” Khadka said, adding that the corporation has already faced losses amounting to Rs 1.90 billion till last fiscal year. “Thus, the national flag carrier cannot afford these aircraft anymore and now the government itself has to decide what to do with these aircraft.”
“The insurance cost of the Chinese aircraft is 35 per cent higher than other aircraft,” according to the NAC that has hired a different sets of pilots as the pilots with national flag carrier cannot fly the Chinese aircraft. “The NAC itself has to train pilots for the Chinese aircraft, which is a very expensive affair,” a board director of NAC said, adding that lack of instructor pilots for these aircraft has also made these aircraft more costlier than for other aircraft.
Similarly, the spare parts of the Chinese aircraft are also 75 per cent more expensive than those required in other aircraft. “It takes almost two months for the company to deliver the spare parts to Nepal,” the NAC claimed, adding that the aircraft had to be grounded for a long period waiting for the spare parts to come from China.
The NAC had signed an agreement with AVIC International Leasing in 2013 which saw the Chinese firm donate one MA-60 and one Y12E on condition that the carrier take three more Y12Es and one more MA-60 using a Rs 3.72 billion ($35.4 million) soft loan from China's Exim Bank. Nepal Airlines has slowly taken delivery of the promised aircraft, but has complained of their unsuitability for Himalayan terrain.
But after five years, and with the loss of above Rs 5 billion, Nepal Airlines Corporation, has completely grounded the Chinese aircraft from today. Nepali aircraft has been banned from flying into the European Union (EU), after Nepal acquired Chinese aircraft.    

EU and UNICEF partner to prevent malnutrition in children during Covid-19 crisis

The European Union (EU) and UNICEF have expanded their partnership on nutrition to prevent malnutrition in children due to the socio-economic impact of the ongoing Covid-19 crisis.
The socio-economic impact of the Covid-19 crisis has led to many vulnerable families across Nepal, being pushed into deeper poverty and has resulted in more children becoming malnourished. Furthermore, with Female Community Health Volunteers no longer able to regularly visit families to monitor the nutrition and health status of babies, young children and mothers in the Covid-19 physical distancing context, this has also reduced families’ access to health services.
The additional EU contribution of 250,000 euros to the existing joint ‘Partnership for Improved Nutrition’ will support the 'Family MUAC' intervention and empower parents and caretakers to themselves monitor the health of their children. “This contribution will support new interventions enabling parents and caregivers to assess the nutritional situation of their children using a mid-upper arm circumference (MUAC) tape in 308 local governments, across 30 districts,” according to a press note issued jointly by EU and UNICEF. “This will facilitate the early detection and referral of children with acute malnutrition to the nearest Outpatient Therapeutic Care Centres and Nutrition Rehabilitation Centres, while reducing the exposure of Female Community Health Volunteers and the community to the virus,” it reads, adding that the existing Multi-Sector Nutrition Plan (MSNP) volunteers, based in all local governments, will facilitate this new intervention and the contribution will also provide essential supplies such as ready-to-use therapeutic food.
“During the last 10 years, the European Union has supported the government of Nepal to combat malnutrition, with tangible results,” EU ambassador to Nepal Veronica Cody said, adding, “However, the Covid-19 crisis is making this battle more difficult.”
Through increasing its financial support, the EU wants to send a strong signal to Nepal, the EU is and will be by your side to leave malnutrition behind,” she added.
“Across Nepal, the socio-economic impact of the Covid-19 crisis is putting children’s lives and their futures in jeopardy as progress made on children's nutrition in the last decade is at risk of being reversed as rising numbers of children are facing malnutrition due to loss of household income and resulting food insecurity,” UNICEF representative to Nepal Elke Wisch said, adding that the social and economic loss for Nepal resulting from the deterioration in children’s nutrition status will be felt long after the Covid-19 crisis is over. “The expanded partnership with the European Union is instrumental in addressing the worst deprivations and providing solutions for the most marginalised children.”
Since 2016, the European Union and UNICEF have been supporting Nepal to scale up the Multi-Sector Nutrition Plan (MSNP) across the 30 districts that have a high prevalence of maternal and child malnutrition. The key nutrition-specific interventions have included treating malnourished children, protecting, promoting and supporting breastfeeding and providing Vitamin-A and other micro-nutrients. The nutrition-sensitive interventions have included promoting hand washing, management of kitchen gardens, and ending early marriage, as well as supporting the related policies. This latest contribution will be shortly followed by a renewed EU support of 23.35 million euros, which will reinforce the implementation of the MSNP until the end of 2022.

WTO issues report on trade impacts for WTO members graduating from LDC status

A new report issued by the World Trade Organisation (WTO) today seeks to help least developed countries (LDCs) better understand the trade-related implications of graduation from LDC status. The product of a joint effort between the WTO and the Enhanced Integrated Framework (EIF), ‘Trade Impacts of LDC Graduation’ looks at how graduation may affect LDCs’ participation in world trade, including their access to export markets, and implications for their WTO commitments.
The report responds to a specific request from the LDC Group in the WTO for an analysis of how graduation will impact countries’ trade relations. LDCs are accorded special treatment in the WTO, in particular with regard to enhanced market access opportunities and the implementation of WTO rules and disciplines.
While graduation represents an important milestone in their development path, phasing out of the special treatment provisions associated with LDC status could present challenges to graduating LDCs. As a result, graduation-related concerns are increasingly becoming an integral part of LDC proposals in the WTO.
The report was completed before the outbreak of the Covid-19 pandemic and the issuance of the WTO’s recent trade forecast, which foresees a sharp downturn in global trade this year. Nevertheless, the study remains pertinent as it examines the trade impacts resulting from graduation, not the factors that could constrain prospects for graduation due to the pandemic.
“The WTO remains committed to helping LDCs use trade to raise incomes and reduce vulnerabilities, and thereby to graduate from LDC status,” WTO director-general Roberto Azevêdo said, adding that a quarter of LDCs today are on track to graduate – or at least were, prior to the economic dislocation arising from the Covid-19 pandemic. “They need to be supported.”
It is very positive that the international community is continuing to explore measures to facilitate a smooth and sustainable graduation process for LDCs, he added.
A WTO member ‘graduates’ from LDC status when it meets certain socio-economic thresholds set by the United Nations (UN). The decision regarding graduation is taken by UN members at the recommendation of the Committee for Development Policy, an advisory body of the United Nations Economic and Social Council (ECOSOC).
There are currently 47 LDCs, of which 12 are at different stages of the graduation process. Of these LDCs, seven are WTO members including Nepal, Angola, Bangladesh, Lao PDR, Myanmar, Solomon Islands and Vanuatu, while three are in the process of negotiating their WTO accession including Bhutan, Sao Tome and Principe, and Timor-Leste. The other two LDCs on the graduation path are Kiribati and Tuvalu.
The report notes that while graduating LDCs have diverse economic and trade profiles, for most of them the impact of graduation appears limited, with only marginal increases in tariffs due to the loss of preferences. The biggest impact is likely to be confined to a handful of export items including clothing, fish products, footwear destined for a few developed country markets including Canada, the European Union (EU) and Japan. With a considerable share of graduating LDC exports going to markets covered by regional trade agreements, the impact of graduation is likely to be limited for this trade.
Graduating governments may need to take certain steps to adhere to their new non-LDC obligations, particularly with regards to increased notification requirements, the report notes.
The report explores options for graduating LDCs, including through forging appropriate trade arrangements with their trading partners and seeking recourse to instruments and procedures available under WTO rules that allow them to engage with WTO members should they face difficulties in meeting their commitments. It also identifies potential support measures that graduating LDCs can build on by working hand-in-hand with their development partners to ensure sustainable graduation.
The WTO Secretariat intends to undertake a Covid-19 impact analysis for graduating LDCs under the aegis of this project.
“Trade Impacts of LDC Graduation” is the outcome of a joint project between the WTO and the EIF that aims to help graduating LDCs to address graduation-related challenges and support their integration into global trade,” he added.

EU offers Rs 9.8 billion aid package to fight coronavirus

The European Union (EU) has announced an aid package of Rs 9.8 billion (Euro 75 million) for Nepal to tackle the outbreak of the coronavirus pandemic and mitigate its impact.
The support combines redirected existing commitments with new funds, granted in the form of budget support to allow the government direct and swift access to this financing, according to a press note issued by the EU Delegation to Nepal.
“In difficult times, the European Union is a reliable friend and partner for Nepal,” it reads, adding that the EU hopes that its contribution will support the efforts of the government to respond effectively to this crisis so that the impact on the most vulnerable is reduced. “International cooperation and solidarity are now more important than ever,” EU ambassador to Nepal Veronica Cody said.
Across the world, the EU is ensuring that partner countries are able to fight the coronavirus pandemic and its consequences. By combining resources from the EU, its member states, and European financial institutions, the EU has put together a ‘Team Europe’ package totaling more than Euro 20 billion to support its partners’ immediate health responses to the coronavirus, as well as their economic recovery, according to the press note.
In Nepal, the EU is mobilising Rs 9.8 billion (Euro 75 million), of which Rs 7.2 billion (Euro 55 million), is a reorientation of the existing funds and Rs 2.6 billion (Euro 20 million) represents a new commitment. “The EU’s support will be directed at two areas: assisting the Nepali authorities to respond to the immediate health crisis and boosting the country’s economic response and recovery," the press note further reads.
The EU will give Rs 1.6 billion (Euro 12 million) to support the government’s health and preparedness plan. These funds are being made available either by topping up resources for already existing projects focussing on the health sector or by reorienting resources to other projects that would integrate health-related activities and crisis response, including tackling gender-based violence. Similarly, Rs 8.2 billion (Euro 62.6 million) will support the government’s response to the social and economic consequences of the pandemic.
The press note also reads that although the government’s strict measures to trace, isolate and treat the virus have so far helped to contain the health crisis, such measures will, as in all countries worldwide, have a negative economic impact. “By stimulating the economy and labour demand, through support to people’s incomes, employment retention, and the extension of social protection programmes that assist the most vulnerable, the European Union (EU) hopes to assist the government’s economic recovery plan," the press note adds.

WTO report finds growing number of export restrictions in response to Covid-19 crisis

Eighty countries and customs territories so far have introduced export prohibitions or restrictions as a result of the Covid-19 pandemic, according to a new report by the WTO Secretariat.
The report, which is based on information from official sources and news outlets, draws attention to the current lack of transparency at the multilateral level and long-term risks that export restrictions pose to global supply chains and public welfare. The new export prohibitions and restrictions mostly cover medical supplies such as face masks, pharmaceuticals, ventilators and other medical equipment, the report finds. Some of the measures have extended the controls to other products such as food and toilet paper, it reads.
However, only 13 WTO members – or 39, if EU member states are counted individually – have submitted information on these new measures in line with WTO rules for quantitative restrictions. Three of them have notified export restrictions on foodstuffs pursuant to the WTO Agriculture Agreement. The report also notes the harms and delays that insufficient information inflicts on countries seeking to procure materials to fight against the Covid-19 pandemic and provides guidance on how WTO members can notify their measures. “Only a handful of notifications were submitted in March 2020 and these have since increased in April,” it adds.
While the report acknowledges exceptions in WTO rules for export prohibitions or restrictions, it also highlights costs that both importing and exporting economies will face in the long run, particularly in terms of lower supply and higher prices for much-needed products.
The Covid-19 pandemic presents the world with an unprecedented public health challenge, it reads, adding that measures to curb the spread of the disease have shut down large swathes of the world economy. “Worldwide demand for medical products to fight the pandemic is unprecedented.”
All countries depend on international trade and global value chains to source these products. This is challenging in light of ongoing disruptions to international transport, particularly air cargo, which often goes together with passenger travel. “Likewise, an additional complicating factor is the growing number of export prohibitions and restrictions, which some WTO members have introduced to mitigate critical shortages at the national level.”
Responding to Covid-19 urgently requires sharp increases in global production of essential medical supplies. Well-functioning value chains can help quickly ramp up production while containing cost increases, the report reads, adding that as new production becomes available, trade will be essential to move supplies from where they are abundant to where they are lacking, especially as the disease peaks at different times in different locations. “However, a lack of international cooperation risks hampering the urgently required supply response.”
The information available thus far suggests that 80 countries and separate customs territories have introduced export prohibitions or restrictions as a result of the COVID 19 pandemic, including 46 WTO members – 72, if EU member states are counted individually – and eight non-WTO members. “Most of these have been described as temporary measures,” the report reads, adding that at least two members have already removed some of those restrictions. “The products covered by these new export prohibitions and restrictions vary considerably; most have focused on medical supplies – for example facemasks and shields – pharmaceuticals and medical equipment – for example ventilators – but others have extended the controls to additional products, such as foodstuffs and toilet paper.”
While Article XI of the General Agreement on Tariffs and Trade (GATT) 1994 broadly prohibits export bans and restrictions, it allows members to apply them temporarily to prevent or relieve critical shortages of foodstuffs or other essential products. “If members move to restrict exports of foodstuffs temporarily, the Agreement on Agriculture requires them to give due consideration to the food security needs of others,” according to the WTO. The WTO rules also contain more general exceptions, which could be used to justify restrictions provided that they do not constitute a means of arbitrary or unjustifiable discrimination between countries, or a disguised restriction on international trade. “Export prohibitions and restrictions applied by large exporters may in the short run lower domestic prices for the goods in question and increase domestic availability. But the strategy is not costless: the measures reduce the world's supply of the products concerned and importing countries without the capacity to manufacture these products suffer. And exporters also risk losing out in the long run. On the one hand, lower domestic prices will reduce the incentive to produce the good domestically, and the higher foreign price creates an incentive to smuggle it out of the country, both of which may reduce domestic availability of the product. On the other hand, restrictions initiated by one country may end-up triggering a domino effect. If trade does not provide secure, predictable access to essential goods, countries may feel they have to close themselves from imports and pursue domestic production instead, even at much higher prices. Such a scenario would likely result in lower supply and higher prices for much-needed merchandise. The long-term effects could be significant.
The report has also suggested possible actions to improve transparency in this area include, ensuring that the new measures are adequately published at the national level and, when possible, making them available in the website(s) of the relevant national authorities. “Notifying as soon as possible any new export restriction to the WTO pursuant to the QR Decision; in case these restrictions affect foodstuffs, notifying them to the Committee on Agriculture as well,” it suggests, adding that updating as necessary the information under the ‘transparency notification’ of Article 1.4 of the Agreement on Trade Facilitation, including the relevant enquiry points. “Endeavouring to provide additional information to other members beyond that required by the notifications, whenever possible.”

Employees against splitting CAAN, Government committed to air safety

Though, the private airlines have been pushing the government to split Civil Aviation Authority of Nepal (CAAN) as soon as possible, the trade unions are against the government move to split the aviation sector regulatory body.
Speaking at the 21st anniversary programme of aviation sector regulator today, they warned of padlocking the office, if the decision to split CAAN to two entities is not rolled back. However, Ministry of Culture, Tourism and Civil Aviation (MoCTCA) has already decided to bifurcate CAAN into regulation and operational bodies.
Chair of CAAN Trade Union Shrawan Kumar Yadav, on the occasion, said that the union has already started second phase of protest against the ministry's decision. But minister for Culture, Tourism and Civil Aviation Yogesh Bhattarai, on the occasion, said that the government will go ahead with the CAAN restructuring plan. “The CAAN restructuring plan will not impact professional development of its employees,” he said assuring the CAAN staffers. “But government will come hard on staffers, who object to the decision.”
Restructuring the CAAN is one of the pre conditions to take Nepal out of European Union (EU) black list. The EU has back listed Nepali aircrafts to fly to European skies. Thus, the government is preparing to split CAAN to make the regulatory authority more effective according to the international aviation principles. The split will also prompt the EU remove Nepal from its air safety list, paving way for the Nepali airlines to fly in the European space.
The private airliners, on the occasion, however urged the government to split CAAN – into two entities to avoid hurting the aviation sector – as soon as possible. Its 9 years, the government has been struggling to split CAAN but the plan has not moved forward. Due to delays in passing the legislation, international aviation safety agencies have been slamming Nepal’s poor progress in ensuring air safety.
The government has prepared a draft Civil Aviation Bill that has already been submitted to the Legislative Committee of the cabinet seeking approval to register it in the Parliament. “The proposed law envisages integrating previous acts to eliminate conflicts and contradictions at the CAAN, which is currently functioning as both regulator and service provider, and there is no clear demarcation between its duties and organisational structure, according to the ministry.
The Civil Aviation Authority of Nepal (CAAN) was established as an independent regulatory body on December 31, 1998 as a result of the Civil Aviation Act of 1996. The new law is expected to replace two existing acts, the Civil Aviation Act 1959 and the Nepal Civil Aviation Authority Act 1996.
In December 2013, the European Commission imposed a blanket ban on all airlines from Nepal from flying into the 28-nation bloc after the September 2012 crash of Sita Air Flight 601 in the Manohara River that killed 19 people, including seven British citizens. Likewise, between 2008 and 2012, there were at least two air crashes annually.
“The ban has had a profound impact on Nepal’s aviation and tourism industry,” president of the Airline Operators Association of Nepal (AOAN) Rameshwor Thapa said, adding that travellers hesitate to visit the country, which has been questioned by the commission.
Likewise, tourism secretary Kedar Bahadur Adhikari, on the occasion, said that Nepal’s aviation safety has improved a lot, but there are many things to be done because improvement is a continuous process.

EU, IOM Nepal to launch project on mainstreaming migration into development

The European Union (EU) in collaboration with the International Organisation for Migration (IOM) is launching a project on Mainstreaming Migration into International Cooperation and Development (MMICD) this week. The initiative is part of a follow-up of the previous assessment that found there was a need for improved coherence between migration, sustainable development, education and rural development.
Under the project, which is also being implemented in Ecuador and Madagascar, IOM will work with partners in Nepal to integrate migration into development planning, with a focus on education and rural development. Assessments and trainings to identify links between different policy areas will be conducted in consultation with stakeholders to develop a roadmap for further action, reads a press note issued by the IOM Office in Nepal today.
Piloting the project in Nepal is timely as the 'decade of action' to deliver the Sustainable Development Goals (SDGs) by 2030 is approaching. Nepal is also preparing for its Voluntary National Review (VNR) in July 2020, which will examine progress made toward the SDGs at the national and sub-national levels, according to the press note.
The EU-financed assessment earlier recommended that Nepal upgrade its data on internal and international migration, strengthen coordination between existing migration measures and new policies in different sectors, and update its migration policies to reflect the complex relationship between migration and sustainable development.
Deputy head of the EU Delegation to Nepal Eloisa Astudillo Fernandez highlighted the value of integrating migration into development sectors. “It's a two-way relationship between sustainable development and migration as it can both benefit migrants and transit communities, but at the same time it brings many risks,” the press note quoted Fernandez as saying. “Therefore, it is important to manage the whole process of migration in a way that gives as many benefits as possible while also mitigating the risks.”
“For the project, we have identified nine sectors that are impacted by migration,” he said, adding that the IOM has – in Nepal – chosen to focus on the rural development and education sectors. “The idea is to integrate the concept of migration within those sectors, as they have a strong impact on the outflow of migrants from Nepal.”