Trade simplification issues high on agenda

KATHMANDU, Aug 12, 2013

The two-day trade talks between officials of Nepal and China began here on Sunday, keeping focus on removing non-tariff barriers and development of trade infrastructures.

Jibaraj Koirala, joint secretary at the Ministry of Commerce and Supplies (MoCS) and a deputy secretary general of General Office of Tibet Government of China are leading the delegation of their respective countries in the joint-secretary level 4th Nepal-China-Tibet Trade Facilitation Committee (NTTFC) meeting. “We held extensive discussion on hassles in bi-lateral trade and measures to be taken to resolve them,” Koirala told Republica after the meeting.
A seven-member Chinese delegation is participating in the meeting.

The third meeting of NTTFC was held in Lhasa of Tibet on July 4 and 5 last year. At the end of the meeting, Nepal and China signed a memorandum of understanding (MoU) that paved the way for export of Nepali citrus fruits -- oranges and sweet oranges -- to Tibet. According to Koirala, Nepal is requesting the Chinese delegation to open branch offices of Chinese banks in Nepal, simplify quarantine procedure for Nepali goods especially farm produces, recognize quality certification issued by Nepali lab for exportable goods, upgrade Tatopani-Kathmandu roads, and open additional dry port in Rasuwagadhi.

“We covered wide range of issues in today´s talks. Chinese officials are very positive on our demands,” Koirala said. “We are hopeful of reaching to an understanding on removing the roadblocks in bi-lateral trade on Monday.”

In the meeting, Chinese side sought Nepal´s cooperation in simplification of transactions in Chinese Yuan (Renminbi) in Nepal. Similarly, officials of both countries also held discussion on harmonization of time for movement of goods at customs points of both countries.

Traders have been facing problems in clearance of goods through the customs point due to the difference in office hours between the two countries.
“Besides, we also held discussion on measures to be taken to bring down trade deficit of Nepal with China which has been going up significantly over the past few years,” said Koirala.

Nepal has failed to take optimum benefit from the zero tariff facility being provided by the world´s second largest economy for 7,787 Nepali products.
According to Trade and Export Promotion Center (TEPC), Nepal´s exports to China increased by 137 percent to Rs 1.99 billion during the first 11 months of the current fiscal year while imports increased by 33 percent to Rs 63.13 billion.

Nepal´s trade deficit with its second largest trade partner reached Rs 61 billion during the review period. Nepal had suffered trade deficit of around Rs 46 billion in the same period last year.

Source: Republica