"The WTO is ready to facilitate LDCs like Nepal in enhancing trade thorough AFT under which recipients formulate the policy in constancy with their demands and needs," said Singh at an interaction on ´Emerging Potentials of International Trade for South Asian LDCs´ organized by South Asia Watch on Trade, Economics and Environment (SAWTEE) on Monday. [break]
Lauding the financial policy and measures taken by Nepal, Singh said achieving four percent economic growth in the current fiscal year was possible if the policies were properly implemented.
"There is a huge potentiality for power generation for economic growth of Nepal if appropriate steps are taken," Singh added. He said developed countries have started the process of providing duty free and quota free access of goods from LDCs to developed countries from 97 percent to 100 per cent as per the Doha Round meeting of WTO to boost trade of products from LDCs. He, however, urged LDCs not to rely on tariff reduction but to enhance their demanding capacity.
On the occasion, speakers complained that AFT has been provided to the LDCs as per the interest of the donor countries and not in line with the demands, leaving the poor countries without any substantial benefit from the trade assistance. He also urged the government to utilize Nepal Tourism Year (NTY) to establish its tourism brand in the international tourism market.
“Given the different products and economic environment, all Asian LDCs and LDCs in the other parts of the world shouldn´t be treated equally in term of their trade capacity,” Singh added.
Speaking on the occasion, Nepal Rastra Bank (NRB) Governor Dr Yuva Raj Khatiwada said Nepal has to gradually shift to export of services rather than depending on merchandised products which are limited and lack wider international market.
"We are losing confidence on exporting merchandised products in the international market, as the cost of production is going up due to rising labor cost, bank rates and power shortage,” he said, adding, “We have no option but to focus on exporting services such as education, tourism and professionals."
Dr Posh Raj Pandey, executive chairman of SAWTEE, said technical assistance to LDCs was not legally binding in contradiction to the WTO rules. He also said international assistance to poor countries for trade enhancement should be made as per their needs and not according to the prescribed policy of donors.
Ratnakar Adhikari, general secretary of SAWTEE, said WTO should focus on enhancing capacity of LDCs to ensure wider access of their products to overseas market.
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