The second meeting of Nepal-Tibet Trade Facilitation Committee (NTTFC) -- a bilateral talks forum -- is scheduled for May 8 to 10 in Kathmandu. The first meeting was held in Lhasa, Tibet, in April last year. An eight-member Chinese delegation led by Ye Yinchuan, deputy secretary general for trade of Tibet Autonomous Region, is participating in the meeting. [break]
Purushottam Ojha, secretary at the MoCS, said Nepal would also push for removal of non-tariff barriers and improvement of infrastructure and services to facilitate movement of goods and give impetus to bilateral trade so that the country could narrow down burgeoning trade deficit with the worlds´ second largest economy.
“We are also requesting China to provide zero-tariff entry facility to goods of Nepal´s export interest and assistance to upgrade trade-related infrastructure like construction of dry port and upgrading of customs facility in Tatopani,” Ojha told Republica on Wednesday.
Nepal will also its northern neighbor to complete the construction and improvement of 21-km Rasuwagadhi-Kerung roads. Rasuwagadhi customs is the second largest customs points for Nepal-China trade after Tatopani customs.
Designing of dry port to be constructed in Larcha of Sindhupalchowk is underway to facilitate the trade along Tatipani customs.
A total of six customs points -- Olangchugola, Kimathanka, Tatopani, Rasuwagadhi, Mustang and Yari -- have been opened along the border with China.
According to Ojha, 361 Nepali goods being exported to the northern neighbor fall under the facility of zero tariff offered by China to a total of 4,721 goods imported from Least Developed Countries (LDCs), including Nepal.
During the talks, the Nepali side also raising the problems related to quarantine as well as banking and language problems that Nepali traders are facing.
“We are also requesting Chinese side to open a branch of a Chinese bank to facilitate bilateral trade,” added Ojha.
The two sides are also signing a Memorandum of Understanding (MoU) on organizing a Nepal-China-Tibet Economic and Trade Fair in Kathmandu in September this year. The fair is being organized to promote goods of both the countries. Such trade fair was earlier organized in Sighatse of Tibet last year.
Given the slow progress in utilizing zero-tariff offered by China in different products, the Nepali side will also seek ways to explore market for Nepali agro-produces, medicinal herbs, cement and handicrafts products.
According to Trade and Export Promotion Center (TEPC), trade deficit with China shot up to Rs 38.2 billion during fiscal year 2009/10 from Rs 11 billion recorded during the during in 2005/06. Nepal has been exporting refined flour, handicraft items and noodles, among others, to China.
Nepal and China had signed the MoU to form the NTTFC with the objective of facilitate bi-lateral trade on Sept 9, 2009.
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