Tuesday, August 14, 2012

China ready to support Nepal bring down trade deficit

KATHMANDU, Aug 14, 2012

China has expressed readiness to support Nepal to bring down the ballooning trade deficit with the world´s second largest economy.

Responding to Nepali concerns during Nepal-China Consultative Meeting on Monday in Kathmandu, Chinese officials were positive to support development of infrastructure, facilitate market access for higher number of Nepali goods, simplification of customs procedures by improving customs facilities, among others, said a foreign ministry official.

“Both sides discussed a gamut of issues, especially economic and trade issues subsisting between the two countries. We are encouraged by the positive responses from the Chinese officials to support us to narrow down our trade deficit with our northern neighbor,” a high level source at the Ministry of Foreign Affairs (MoAC) told Republica on Monday.

During the fiscal year 2010/11, Nepal recorded its highest ever trade deficit with China which rose to Rs 44 billion.

Foreign Secretary Durga Prasad Bhattarai and Chinese Deputy Foreign Minister Fu Ying led their respective teams.

Officials from finance, agriculture, energy, industry, commerce, health, home, local development, education, tourism ministries and National Planning Commission were present at the meeting.

“During the meeting we also reviewed the implementation of various projects supported by China and explored the potential sectors for increasing Chinese investment in Nepal,” said the source.

Chinese side had expressed interest to import more Nepali agriculture products as well as Nepali handicrafts which are gaining popularity there.

Nepal has been exporting cement, iron rods, noodles, refined flour, handicrafts, carpet, pashmina, silver ornaments, incense and medicines, among others to the world´s second largest economy. Similarly, electronics, garments, electrical goods, shoes, beverage and vehicles are the major imports from the northern neighbor.

Source also said both sides extensively reviewed bi-lateral issues on development of infrastructure and hydropower, resumption of Kathmandu-Lahasa bus service, simplification of visa to Nepalis to visit China, direct flight between major cities of both countries, extension of ring road, Trishuli A hydropower and construction Pokhara International Airport as well as better investment climate in Nepal.

Nepal had imported goods worth Rs 45.63 billion from China against the export amounting Rs 746 million during the fiscal year 2010/11.

Nepal has been exporting only around 360 goods to China though the world´s second largest economy has been providing zero tariff access to 4721 items of goods from Least Developed Countries including Nepal.

Source: Republica

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