Part 1.

Brief Assessment of International Trade Scenarios: Volume, Direction, Pattern and Trends

International Trade is the exchange of capital, goods and services across international borders or
territories because there is a need or want of goods or services
Trade volume relates to the size of international transactions. Since a large number of
commodities enter in international transaction, the volume of trade can be measured only in
terms of money value
Trade between China and America
In 1979, US and China re-established diplomatic relations and signed a bilateral trade agreement.
This gave a start to a rapid growth of trade between the two nations; from $4 billion that year to
over $600 billion in 2017
United States and China have several unresolved issues surrounding the bilateral trade between
the two countries. The trade deficit between China and US has swelled immensely as the volume
of imports from China grew much more rapidly than US exports to China
Top 10 Exports by China to USA
Sn Good Exported Value (in billion dollars)
1 Mobile Phones 43.67
2 Automatic data processing 37.24
machines
3 Tricycles, scooters and 12.32
similar toys
4 Communication apparatus 11.25
5 Games 5.35
6 Other monitors 4.71
7 Units of automatic data 4.42
processing machines
8 Electrical static converters 4.6
9 Seats 4.29
10 Reception apparatus for TVs 4.17

Top 10 Exports by USA to China

Sn Good Exported Value (in billion dollars)
1 Aeroplanes and other aircraft 13.13
2 Soya beans 12.46
3 Vehicles with only spark- 7.89
ignition internal combustion
reciprocating piston engine
4 Electronic intergrated circuits, 4.95
processors and controllers
 5 Oils 3.97
6 Gols 2.09
7 Machines and apparatus for 1.92
manufacture of
semiconductor devices
8 Vehicles for transport of 1.87
person
9 Petroleum, gases and other 1.72
gaseous hydrocarbons
10 Copper 1.6

Mobile Phones are the highest imported good from china

USA is the world’s largest mobile phone importer country with one of the highest Smartphone
China is the biggest smartphone import market of the USA with the shares of 79.7% of the
imports in 2017. US mobile phone imports form China worth USD 56 billion
Domestic manufacturer are not able to meet the demand
Year Value (USD Billion)
2017 56
2016 51
2015 53
2014 53
2013 50

Aeroplane and other aircrafts are the most imported good from USA
The imports has increased in these years according to the data
China is trying to improve its aviation services and have invested more than 100B dollars in
doing so.
Commercial opportunities in China’s civil aerospace and aviation service markets
America is leading exporter right now
Year Value (in billion dollars)
2016 14.37
2017 16.12
2018 17.7

Total Volume of trade in last 5 years between USA and China

Fluctuation in exports by USA to china has been inconsistent
Exports by China has increased in the initial years and later declined
Year Exports by USA (in billion dollars) Exports by China (in billion dollars

2016 115 462

2017 129 505

 2018 120 538

2019 106 450

2020 124 434

Trade between India and America

• A trade deal between two of the world's largest economies
• The two nations have been negotiating the terms of a deal since 2018 after US President
Donald Trump cited India as the king of tariffs for imposing high import duties.
• Started increasing import duties in counter response

Top 10 exports by. India to USA

S No. Goods (According to year 2019) Value (in dollars)

1 Precious metals and stones 11B

2 Pharmaceuticals 7.6B

3 Machinery 3.7B

4 Mineral fuels 3.6B

5 Organic Chemical 2.8B

6 Spices 271M

7 Rice 230M

8 Essential oil 184M

9 Processed fruit and vegetables 142M

10 Vegetable oils 133M

Top 10 Exports by USA to India

 S No. Goods (According to year 2019) Value (in dollars)

1 Mineral fuels 8.2B

2 Precious metals and stones (diamonds) 6.4B

3 Aircraft 2.8B

4 Machinery 2.4B

5 Organic chemicals 1.9B

6 Tree nuts 823M

7 Cotton 587M

8 Fresh fruit 62M

9 Dairy products 60M

10 Pulses 37M

Total Volume of trade in last 5 years between USA and India

• The exports by USA to India has increased by decreased in 2020
• The exports by India to USA has increased as well by decreased in 2020 as well
Year Exports by USA (in billion dollars) Exports by India (in billion dollars

2016 21 46

2017 25 48

2018 33 54

2019 34 57

2020 27 51
Trade between EU and USA
• The European Union and the United States have the largest bilateral trade and investment
relationship and enjoy the most integrated economic relationship in the world.
• Together, the EU and the US economies account for about half of world GDP and for
nearly a third of world trade flows.
Top 10 exports by USA to EU
S No. Goods (According to year 2019) Value (in dollars)

1 Aircraft 37.5B

2 Mineral fuels 28.9B

3 Machinery 26.4

4 Optical and medical instruments 25.8

5 Pharmaceuticals 25.6

6 Tree nuts 2.9B

7 Soybeans 1.9B

8 Planting seeds 458M

9 Prepared food 400M

10 Wine and beer 251M

Top 10 exports by EU to USA

S No. Goods (According to year 2019) Value (in dollars)

1 Pharmaceuticals 77B

2 Machinery 75.6B

3 Vehicles 44.2B

4 Optical and medical instruments 30.1

5 Special other returns 27.4B

 6 Wine and beer 6.3B

7 Essential oils 3.2B

8 Snack foods 1.7B

9 Processed fruit and vegetables 1.4B

10 Vegetable oils 1.3B

Total Volume of Trade in Last 5 years between USA and EU

• The exports by both the countries to each other has increased for the first 4 years but
decreased by 2020

Year Exports by USA (in billion dollars) Exports by EU (in billion dollars)

2016 269 416

2017 283 434

2018 318 486

2019 336 515

2020 231 415

Conclusion
• The volume of export by America is comparatively low against all the three countries
• No country was spared by covid19 as it has affected the trade volume of all the countries.

Direction/Patterns and trends :

Part 2.
Explain in detail about followings: -
1. Nepal Trade Integration Strategy (NTIS)
Objectives
 Strengthen trade and export enabling environment.
  Focus on product development and strengthen the supply capacity of priority
products
 Strengthen institutional capacity, trade negotiation, and inter-agency coordination
 Build and enhance trade-related infrastructures

NTIS was launched by the Government of Nepal with an aim of providing/promoting trade-
focused economic growth in the country
Diagnostic Trade Integration Studies (DTIS) as the Nepal Trade & competitiveness Study
(NTCS) was validated in 2004. This study analyzed Nepal’s Trade regime and performance and
identified products with comparative and competitive advantages.
NTS(2010) updated version of NTCS 2004, focused on the development of 12 goods and 7
services for making trade inclusive and equitable.
NTIS 2016, recognizes potentials for product and value chain development. NTIS 2016 has been
formulated in close complementarity with Trade Policy 2015.
Products (12) Services (7)
 Cardamom  Skilled and semi-skilled professionals
 Ginger at various categories (remittance-
 Tea generating services)
 Medicinal and Aromatic plants  IT-BPO and IT Engineering
 All fabrics, Textile, Yarn and rope  Tourism (including leisure, business,
 Leather education and medical)
 Footwear
 Pashmina
 Carpets

Functions of NTIS


2. Trade and Export Promotion Center (TEPC)

3. Federation of Nepalese Chamber of Commerce and Industry (FNCCI)
Please provide the background, introduction, roles, functions, objectives, initiatives,
contributions, and their significance in the promotion of trade in the Nepalese economy.

TEPC (Trade and Export Promotion Centre)

Functions of TEPC;
 Advise the GoN in formulating policies for the development and expansion of trade and
export.
 Contribute to strengthening the national economy by developing and expanding trade and
export of the country
 Support in achieving the goal of poverty alleviation through the development of rural
economy by enhancing internal and external market for agro-based and other products.
 Assist to diversify trade by identifying potential market for exportable products.
  Cooperate in opening institutions for export promotion and to diversify trade and extend
support to such institutions.
 Plead for technical assistance with national and international organizations for improving
quality/standard of exportable products.
Trade Acts
 Banijya Niti 2072
 Trade Policy, 2009
 The Industrial Enterprise Act, 2049
 Bank and Financial Institutions Act, 2063
 Insolvency Act, 2063
Policies;
 Climate Change Policy
 Foreign Investment and One window policy
 Industrial Policy
 Labor and Employment Policy
 National Agricultural Policy
 Trade Policy, 2072
 Monetary Policy, 2020.21
 Nepal Trade Integration Strategy

FNCCI (Federation of Nepalese Chamber of Commerce and Industry)

Vision: “Leading the Nation’s Economic Progress”
Mission: “Facilitating Nepalese Businesses become globally competitive”
Membership Structure
 114 Municipality Level Chambers in 77 Districts of Nepal including 1 observer chamber
 103 commodity/sectoral associations
 935 leading public and private sector undertakings
 20 Bi-national Chambers including 8 observer chambers
Objectives;
 Play a catalytic role in the business, industrial development and establish sound industrial
relations in the country
 Reinforce business community’s commitment to the society
 Provide advisory services to government, lobby as and when required in formulation and
execution of business and industry related policies, acts and programmes
 Foster cooperation with related national and foreign organizations
 Provide up-to-date information services to business and government and the community
at large
 Create awareness and support for business and industry efforts on issues affecting
business like quality, social responsibility, corporate governance, HIV/AIDS, child labor,
environment etc.
Functions;
 Professionalism in operation
 Partnership approach in working with government, international organizations
 Presentation of total business and industry view
 Commitment of fairness, transparency, de-regulation, de-centralisation and de-licensing
  Confidence in fair competition and private initiative
 Extensive consultation in deciding industry and business views
 Close cooperation with foreign federations/chambers
 Proactive role such as initiating ideas and proposals
Services:
 Representing the entire business commodity of the country in national and international
forums
 Preparing recommendations for promoting exports and investments
 Promoting joint ventures
 Providing expertise service to exporters, importers and investors
 Facilitating participation in national and international trade fairs and exhibitions
 Promoting better industrial relations
 Providing business information and research services
Project and Cooperation Arrangements
FNCCI has been actively cooperating with foreign organizations such as UNDP, USAID, DFID,
UNIDO, UNCTAD/GATT/ITC, World Bank, ILO, PPPUE, SEQUA-GTZ Private Secotr
Promotion Project, UNFPA, Asia Invest, JICA, IOE, NIKKEIREN, APO, JETRO, SAARCH
Secretariat, ICIMOD, AOTS etc in carrying out various activities for the promotion of business
and industry.
Relationship Between TEPC and FNCCI
TEPC advise the Government of Nepal in formulating policiies for the development and
expansion of trade and export.
FNCCI functions as the implementation agency and Ministry of Finance as the executing agency
Roles of TEPC and FNCCI in promoting trade in Nepal
 Both organizations aims to promote business and industry
Promotes economic development by improving competitive capacity, expanding market and
providing modern technology and machineries for industrial and agricultural sector.
References
https://www.google.com/search?client=safari&rls=en&q=ntis.pdf&ie=UTF-8&oe=UTF-8
https://www.statista.com/statistics/186510/volume-of-us-exports-of-trade-goods-to-china-since-
1985/
https://www.statista.com/statistics/187675/volume-of-us-imports-of-trade-goods-from-china-
since-1985/
https://www.statista.com/statistics/187683/volume-of-us-imports-of-trade-goods-from-india-
since-1985/

https://tradingeconomics.com/china/exports/united-states
https://www.uschina.org/reports/2021-state-export-report