TRADE POLICY, 2009

source: http://www.visionapexcollege.blogspot.com 

Background

Nepal has been adopting an open and market oriented trade policy for the last two decades with expectations that such policy generates positive impacts on the resource mobilization, economic development and poverty alleviation. However, the poor and backward countries are not able to realize the benefits of trade liberalization due to difficulties in accessing capital, technology and market, and the unequal economic levels existing among the various countries. In spite of extension of market access due to the entry into the World Trade Organization and regional trading arrangements of SAFTA and BIMSTEC,

1. Main Objective:

To support the economic development and poverty alleviation initiatives through the enhanced contribution of trade sector to the national economy.

2. Objectives:

2.1 To create a conducive environment for the promotion of trade and business in order to make

it competitive at international level.

2.2 To minimize trade deficit by increasing exports of value added products through linkages

between imports and exports trade.

2.3 To increase income and employment opportunities by increasing competitive ness of

trade in goods and services and using it as a means of poverty alleviation.

2.4 To clearly establish interrelationship between internal and foreign trade, and develop them as

complimentary and supplementary to each other.

Policy:

1. The government will play the role of a guardian, regulator and facilitator to make export trade

competitive through commodity and regional diversification by bringing the private sector in

the forefront.

2. The fiscal and monetary policies , foreign investment, industrial estate , tourism, agriculture,

forest, and physical infrastructures policies will be reviewed with a view to harmonizing them

with the trade policy.

3. The export base will be widened by maintaining forward, backward and parallel linkages among

the above mentioned sectoral policies.

4. Efforts will be made for concluding bilateral and regional agreements for the recognition of Nepalese quality standards with a view to enhancing the supply of goods in the quantity and quality in line with the demand of international markets.

5. Foreign investors and non-resident Nepalese nationals will be encouraged to establish

international production network through the means of out-sourcing and contract of services

and production with a view to harnessing benefits from the cost effective and qualitative production opportunities which are available in the country and to be developed in future.