Draft of revised Trade Policy ready (MoCS proposes adding 11 products and seven services to boost exports) KATHMANDU: As the country has been witnessing alarming trade deficit due to high import growth against export in recent years, the government is mulling over promoting three dozen products and services that have competitive edge for boosting exports by expanding production. While revising the Trade Policy, 2009, the Ministry of Commerce and Supplies (MoCS) identified 29 products and seven services that have the potential of raising exports. As per the draft of Trade Policy, 2015 prepared by the MoCS, it has proposed 29 products of high export potential. Of the 29 products, 11 are new products, namely, red lentils, all textiles, footwear, iron and steel products, cement, transformers, dairy products, oranges, carpets, leather, noodles and sugar. Rest of the products, like garments, chyangra pashmina and silk products, tea, honey, large cardamom, sweet orange, floriculture, processed leather, handmade paper and their products, ginger (also dried ginger), handicraft products, coffee, vegetable seeds, precious stones and gold and silver jewellery, medicinal herbs and essential oils, hand-knotted carpets and woodcraft products were taken from the existing policy. Though the existing trade policy has identified pulses as export potential product, the new draft particularly proposed red lentils, which is being exported mainly to Bangladesh. Apart from the products, upcoming policy has envisaged developing service sector and proposed promoting labour, information technology (including business process outsourcing), engineering, tourism, health, education and hydropower. These sectors have also been identified as those with competitive edge in service trade and the Nepal Trade Integration Strategy (NTIS), 2010 had incorporated them. The NTIS is being implemented with the financial and technical support of Enhanced Integrated Framework (EIF) — a mechanism formed by the World Trade Organisation, World Bank, International Monetary Fund and UNCTAD to provide support to enhance the trade capacity of least developed countries. The proposed products and services will get government’s support to some extent to boost production. The identified products are believed to have multiplier impacts in terms of employment generation, poverty alleviation and enhancing exports. MoCS has said that it will bring a policy compatible with NTIS for better implementation of the country’s trade strategy. The policy that is in the draft phase will supersede the Trade Policy 2009. Together with trade capacity enhancement, the new policy has emphasised better coordination among ministries as well as other government agencies and trade facilitation. The new policy will also focus on developing industrial zones for export promotion, trade-related infrastructure and institution development, as per an official involved in drafting the policy. “The draft has proposed Bi-lateral Investment Promotion and Protection Agreement with developed countries to attract foreign investment, reducing trade-related costs by establishing resourceful infrastructure, and capacity enhancement of trade related agencies and institutions.” Source: THT
Posted on: Sun, 25 Jan 2015 04:57:42 +0000
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