Kathmandu. Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry, has stated that the continuity of duty-free access is essential for sustaining and increasing exports to the United States in the coming days.
Dhakal made this statement during a programme jointly organised by the FNCCI, Garment Association of Nepal, Nepal-US Chamber of Commerce, USAID, and the Federation of Export Entrepreneurs Nepal, which focused on the opportunities and challenges of Nepal-US trade and investment.
He noted that the duty-free access on 77 products granted by the US following the 2015 earthquake is set to expire next year, and the upcoming Trade and Investment Framework Agreement (TIFA) Council meeting scheduled for next week is crucial. Dhakal emphasised the need to prioritise the continuity of this facility and the reinstated GSP facility at the meeting.
Furthermore, Dhakal stressed the importance of joint efforts by the government and the private sector to ensure the continuation of duty-free access at a time when Nepal is graduating from the least developed country status.
During the programme, Krishna Raut, Secretary of the Ministry of Industry, Commerce and Supplies, stated that the government would discuss the matter with the US based on the suggestions from the private sector.
Ganesh Parajuli, a member of the House of Representatives, assured that he would advocate for the continuation of facilities in the US at the parliamentary level and other relevant platforms.
On the occasion, Anjan Shrestha, Senior Vice President of the FNCCI, stated that more efforts are needed to increase exports to the US. Pashupatidev Pandey, President of Garment Association of Nepal, emphasised that the government should prioritise special efforts as this is the right time to lobby with the US. Similarly, Kiran Saakha, President of the Nepal-US Chamber of Commerce and Industry, stated that in addition to increasing exports, there is a need to focus on assistance programmes for trade. Shankar Pandey, President of the Federation of Export Entrepreneurs Nepal, emphasised the need to increase the volume of exports to the US.
A TIFA agreement was signed between Nepal and the US in 2011. As this agreement served as a framework, it was expected to lay the groundwork for bilateral investment and trade agreements. However, no significant progress has been made so far.
Stakeholders have expressed concerns that the potential loss of these facilities could lead to a decline in exports to the US. The US is Nepal’s second-largest export destination.