Deputy Prime Minister Bharat Mohan Adhikari and US trade representative Ron Kirk are sealing the deal on behalf of the respective governments. A Nepali delegation led by Adhikari, including the secretaries of Commerce Ministry, Law Ministry and Energy Ministry, have already embarked on a weeklong visit to the US. [break]
Once the agreement is inked, the two governments will instantly declare formation of permanent bodies to discuss bilateral issues and promote trade and investment between the two countries. "The first meeting of Nepal-US Council on Trade and Investment (NUCTI) will hold discussions on granting preferential access to key Nepali products, including Nepali Readymade Garment (RMG) and pashmina, to the US market," said a source.
It will also discuss the issue of labeling and registration of trademark for Nepali carpet to safeguard and promote its market in the US. Similarly, the bilateral talks will also work out scope and operational modality of the NUSCTI, which will meet annually as per the agreement to facilitate effective dialogue on areas like trade, capacity building of Nepali private sector, protection of intellectual property rights of Nepali goods and promotion of US investment in Nepal.
"NUCTI meeting will focus on how Nepal can maximize utilization of General System of Preference (GSP) and get more US investment in Nepal," Dr Shankar Sharma, Nepalese ambassador to the US told Republica on Thursday. So far, Nepal is utilizing mere 9 percent of the total GSP facility.
During the meeting, Nepali side will seek US assistance to enhance capacity of Nepali business community and other stakeholders so that the country could realistically tap vast potential of the US market. Nepal has filed a petition seeking GSP for 11 RMG items and one pashmina item. After the end of duty-free quota-free regime, US has been imposing 17 percent duty on Nepali RMG -- the largest export item the country sends to the US market.
The delegation will also seek US investment in energy and service sectors such as health, education, tourism, bank and financial sectors in Nepal. "We will target the US investors who are making huge investments in India´s energy and service sectors and make them aware of the investment climate in Nepal," said Sharma. He, however, said the major concerns of the US investors have been frequent labor unrest and slow progress in peace process.
The Nepali delegation will also inform the US investors Thursday about government-declared ´energy emergency´ and request them to invest in the sector. Deputy PM Adhikari is scheduled to make a presentation on the prospects of investment in Nepal highlighting legal regime, facilities and government mechanisms to facilitate the foreign investment.
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