The second meeting of Nepal-Tibet Trade Facilitation Committee (NTTFC), a bilateral talks forum, that begins from Monday is crucial in view of the widening trade deficit with China in the recent times.[break]
“It´s high time that Nepal take the initiative to persuade China and India to utilize Nepal as a transit point for their bilateral trade so that we can reap maximum benefits from their vast markets and booming economy in the coming days,” Rajesh Kaji Shrestha, the president of Nepal-China Chamber of Commerce and Industry (NCCI) told Republica on Saturday.
Shrestha also demanded that government put pressure on China to ensure hassle free access to Nepali goods into Chinese market through quotas and zero tariff facility.
Gaining a foothold for Nepali products in the market of second largest economy amid rising competition and eliminating hassles created by Chinese officials in the name of quarantine checks are major challenges Nepali traders face.
“The government has to raise the issue of yawning trade deficit with the northern neighbor as our products are not in a position to compete with the products available in Chinese markets. The quarantine checks must be simplified to facilitate the growth of Nepali exports,” Shrestha added.
Export of meat products and some food commodities have come to a virtual halt due to complicated quarantine system. “Complex and impractical customs checking have encouraged smuggling of such products,” said Shrestha.
He also demanded that the Chinese government ensure that Tatopani customs -- the largest customs points at the northern border -- remains open at all times for the convenience of Nepali traders.
“Nepali traders are compelled to pay additional taxes to China for the goods imported to Nepal through Tatopani as compared to the goods brought in through Kolkata,” said Shrestha.
He also stressed on the need for opening a branch of Chinese Bank and insurance company in Nepal to facilitate bilateral trade. He also demanded that the stalled Lhasa-Kathmandu bus service be resumed and the process of granting visas to Nepalis be simplified to promote bilateral tourism.
Durga Bahadur Shrestha, president of Nepal Trans-Himalaya Trade Association, said, “Developing Nepal as a transit hub would expand the market of Nepali goods in future as both our big neighbors have huge population,” said Shrestha.
He also suggested that the government take initiative to press Chinese side to allocate special quotas for Nepali exportable goods in the Chinese market. China has provided duty free access to 4721 goods from the Least Developed Countries, 361 Nepali products fall under the category.
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 in 2005/06.
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