Currently, Thailand imposes around 40 percent customs duty on almost all Nepali exports. As this has been eroding competitiveness of Nepali exports in the Thai market, only limited Nepali products like handicrafts find customers in Thailand.[break]
“Fundamentally, there is a huge scope for the two countries to expand business in each others´ markets. However, 40 percent duty is a huge trade barrier,” said FNCCI President Suraj Vaidya, who led the Nepali delegation in a meeting with Thai Commerce Minister Boonsong Teriyapirom this week.
While requesting for tariff cuts, he even referred that such high tariff barriers have restricted Nepal´s exports to Thailand to around Rs 24 million per annum, whereas the country imports goods worth Rs 7.50 billion from Thailand.
FNCCI delegation that met Deputy Prime Minister and Tourism and Sports Minister Chumpol Silapa-archa and Foreign Minister Dr Surapong Tovichakchaikul also requested the Thai government to facilitate business and travel between the two countries by easing availability of on-arrival visa to Nepali travelers.
During the meetings, the Thai ministers said they are eager to expand and deepen trade and investments between the two countries. “In fact, the very policy of our government is to facilitate Thai investors to invest overseas,” said Boonsong.
Citing that Thai investors have numerous investment projects in India and other South Asian countries, Boonsong even committed to encourage Thai companies to expand their presence and investments in Nepal as well.
The FNCCI delegation during the visit also interacted and held business match-making meetings with senior officials of Thai Chambers of Commerce.
During the meetings, Vaidya informed Thai entrepreneurs about the latest policy developments in Nepal like establishment of Investment Board, government decision to invite private sector in large-scale development projects, and celebrate year 2012/13 as Nepal Investment Year.
He briefed Thai investors on recent progress made in the peace process and also informed them that Nepal eagerly welcomes overseas investments in sectors like infrastructure, hydropower, tourism, agriculture, services like health and education, and mining industry. He also told Thai investors that investments in sectors like airports and expressways are particulalry welcome.
Responding to FNCCI call, Senior Vice Chairman of Federation of Thai Industries Sumida Buranasiri said Nepal and Thailand have huge potentials to benefit from each other.
“There are a number of feasible business projects and sectors in Nepal in which Thai investors are interested. With further deepening of the private sector´s relationship, the two countries can go a long way in serving mutual economic interests,” he stated.
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