10 September 2024, Kathmandu
Nepalese business leaders have emphasized the critical importance of maintaining duty-free access to the United States market to boost exports.
Boosting Nepal-US Trade
Led by the President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Chandra Prasad Dhakal, these leaders urged the government and the private sector to work together to extend the existing duty-free facilities and the Generalized System of Preferences (GSP) privileges.
Speaking at a joint program organized by FNCCI, Garment Association of Nepal, Nepal America Chamber of Commerce, USAID, and the Federation of Export Entrepreneurs Nepal (FEEN), Dhakal highlighted the significance of the upcoming Trade and Investment Framework Agreement (TIFA) Council meeting. He stressed that this meeting would be crucial in securing the extension of these benefits, which are set to expire in the coming year.
Industry Secretary Krishna Rawat assured that the government would engage in discussions with the U.S. based on the recommendations of the private sector. Member of Parliament Ganesh Parajuli also pledged to advocate for the continuation of these benefits within the parliament. Senior FNCCI Vice President Anjan Shrestha reiterated the need for increased efforts to enhance exports to the U.S.
Business leaders, including Pashupati Dev Pandey of the Garment Association of Nepal and Kiran Sakha of the Nepal-America Chamber of Commerce and Industry, emphasized the urgency of advocating for favorable trade policies with the U.S., especially given Nepal’s status as a Least Developed Country (LDC). Shankar Pandey of the Federation of Export Entrepreneurs Nepal called for a significant increase in export volumes to the U.S.
Despite the TIFA agreement signed between Nepal and the U.S. in 2011, the expected progress has been slow. As Nepal transitions from LDC status, there is growing concern that the potential loss of duty-free privileges could adversely impact its exports. The U.S. remains Nepal’s second-largest export destination, and business leaders expressed worries about a potential decline in trade if these facilities are not extended.
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