China has offered zero tariff to 4,721 goods to be imported from the Least Developed Countries including Nepal. However, Nepal has failed to benefit from the provision as Nepal exports only few items to China due to some non-trade barriers. Nepal had a couple of years back asked China to waive tariff on 496 Nepali export items.[break]
“Given the widening trade deficit with China, the upcoming NTTFC meeting will mainly focus on exploring new ways that would drive up the exports of Nepali goods to China,” said Toya Narayan Gyawali, joint secretary at the Ministry of Commerce and Supplies (MoCS).
Gyawali also said how to take maximum benefit from the zero-tariff facility will also be discussed during the talks.
According to Trade and Export Promotion Center (TEPC), trade deficit with the northern neighbor has jumped to Rs 42 billion during the year 2009/10 from Rs 12 billion recorded during the fiscal year 2005/06. Nepal has been exporting refined flour, handicraft items and noodles, among other things to China.
Nepal and China had signed a Memorandum of Understanding (MoU) on September 9, 2009 to constitute the NTTFC with the aim to facilitate bi-lateral trade. The first meeting of NTTFC was held in Lhasa, Tibet in April last year. An eight-member Chinese delegation led by deputy secretary general on trade of Tibet autonomous region is scheduled to participate in the meeting.
Similarly, issues related to improving infrastructure and facilities at Tatopani customs and minimizing non-tariff barriers in the trade between the two countries will also be discussed during the meeting. Nepali traders have been complaining that they are harrassed at customs points by Chinese security personnel and customs officials.
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