The team will mainly discuss on Trade and Investment Framework Agreement (TIFA) -- a pact that US Trade Representative (USTR) Office has prescribed for Nepal to win special market access facility in the world´s largest economy. [break]
“It will also push for zero-duty for Nepal´s dying readymade garment industry, apprise investors and officials there about investment avenues and opportunities here and seek assistance for trade related infrastructure development,” said Commerce Secretary Purushottam Ojha.
For the purpose, team will be holding talks with senior officials of Department of Commerce, US Trade Representative, senators and congressmen.
Ojha told myrepublica.com that the delegation will also interact with US business organizations, and work for establishing a reliable and workable private-private ties -- a mechanism that could help investors on the other side of Atlantic know and update on business and investment opportunities here.
To facilitate the process, Ministry of Commerce and Supplies has included chiefs of Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Confederation of Nepalese Industries (CNI) and Garment Association Nepal (GAN) in the delegation. Nepali embassy in Washington DC is coordinating the meetings.
“The main objective of the visit is to get a tangible and formal public and private links established so that economic engagements between the two countries could be rejuvenated,” said Ojha.
Amid political turmoil and instability, Nepal´s trade and economic relations with the largest economy of the world has faded in recent years. In recent years, Nepal has received almost nil US investment and its major exports like readymade garment has also collapsed.
As a result, bilateral trade between Nepal and the US stands very nominal with Nepal enjoying trade surplus of Rs 180 million. In such a situation, officials believe that the signing of TIFA and acquisition of special preferences will give new impetus to bilateral trade and investment.
Traders too argue that the facility will instantly give boost to Nepal´s exports like handmade woolen carpet, pashmina and other items that are barely covered under GSP (generalized system of preferences).
As a response to Nepal´s past efforts to win zero-duty facility for readymade garment, USTR had forwarded the text of TIFA to the Commerce Ministry a few months ago. The ministry had instantly responded positively to the offer, suggesting certain changes in the text.
However, concerned trade experts have criticized the way government decided to go for TIFA, especially without consulting concerned stakeholders. They have sought open debate on it, so that tough trade related conditions -- something that Nepal is fighting in the World Trade Organization -- do not come with the pact.
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