The article is the property of New Spotlight News Magazine.

NEW TRADE POLICY: Competitive Focus

One of the main objectives of the new policy is to promote domestic industries, manage growing
imports and boost exports, so that trade becomes an engine for economic development of the
country.

With the release of New Trade Policy, Nepal has focused its efforts in priority areas for the
coming years.Launched by Minister of Commerce and Supply Sunil Bahadur Thapa, the new
Trade Policy includes provisions aimed at promoting service trade, protecting intellectual
property rights and implementing decisions taken during the Ninth World Trade Organization
Ministerial Conference held in Bali, Indonesia, in December 2013.

The new policy focuses on increasing the competiveness of domestic product so that the huge
trade deficit can be managed, said Naindra Prasad Upadhyay, secretary at Ministry of
Commerce and Supplies.

One of the main objectives of the new policy is to promote domestic industries, manage
growing imports and boost exports, so that trade becomes an engine for economic development
of the country, said secretary Upadhyay. Nepals last Policy was announced in 2009. However,
it did not get properly implemented. This is the reason most of the policies fail to produce
desired outcomes.

We will focus on the implementation of the policy, said Upadhyay. The policy, among other
things, includes measures to promote exports of goods with comparative and competitive
advantage by strengthening the capacity of standard-testing laboratories and establishing
additional common facility and processing centers.

Under the policy, the role of the government is a facilitator, guardian and regulator. Since there
are some products which have the comparative advantages for Nepal, we want to promote them
in the export market, said secretary Upadhyaya.

Some of these goods include: ginger, black cardamom, hand-knotted woolen and other types of
carpets, allopathic medicines, medicinal herbs and aromatic oil, coffee, chyangra and pashmina
products, goods made of silk, sugar, tea, shoes, textiles, vegetables and vegetable seeds, instant
noodles, readymade garments, dairy products, processed leather, flowers, fruits, iron and steel
products, honey, pulses, cement, jewellery made of gold and silver and precious stones,
handicraft products, handmade paper and products.

As Nepals import is growing and trade deficit continues to increase, Nepal has also focused its
efforts on how to reduce the deficit. The policy also focuses on narrowing the trade gap by
addressing the supply-side constraints, enhancing the capacity of export-oriented service firms,
The article is the property of New Spotlight News Magazine.

such as those engaged in engineering, hydroelectric production, tourism, education, IT and

business process outsourcing, health and human resources development, said secretary
Upadhyay.

There are also provisions in trade policy aimed at reducing transaction costs through trade
facilitation and institutional capacity building, and expanding export market for Nepali products
through economic diplomacy and use of trade blocs of which Nepal is a member.