Such expression of interest came when the visiting Nepali trade delegation interacted with the officials of US Chambers of Commerce (USCC) on Wednesday. This has kick started a preliminary process for US investors to identify areas and possibilities of investment in Nepal, said the participants. [break]
One of the investors even noted that it has initiated activities for bringing investment for a mega hydropower project.
The USCC officials, however, also made clear that Nepal would need to straighten its policies, particularly those related to labor and power, end political instability and improve the security situation for bringing in US investment.
Earlier, the White House officials during their talks with the delegation had cited political instability and structural constraints as major hindrances to bilateral economic ties.
They had also raised questions over whether Nepal would be able to conclude the peace process and promulgate new constitution on time, ease labor regime and improve overall business environment.
During the interaction, Commerce Secretary Purushottam Ojha had briefed the US private sector on the new policies and laws Nepal has put in place to protect overseas investment and boost investors´ confidence.
Ambassador to the US Dr Shankar Sharma too highlighted increased flow of US tourists to Nepal in 2009 and the status of US investment in Nepal. In terms of investment, the US is the largest investment generating country for Nepal, after India and China.
The president of Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Kush Kumar Joshi made presentations on highly potential sectors in Nepal. He enumerated hydropower, commercial agriculture, tourism and other service sectors as areas where investors can enjoy special returns in Nepal.
On the occasion, Assistant Trade Representative Michael J Delani said that signing of Trade and Investment Framework Agreement (TIFA) between the two countries will add new dimension to bilateral economic relations. Nepal and the US had agreed to sign TIFA on Tuesday.
The US investors had made numerous enquiries about the potential and situation of investment on sectors like hydropower, health and financial, among others. FNCCI and USCC have agreed to hold similar information-sharing and interactive meetings regularly in the future as well.
Likewise, Nepali Embassy in the US, FNCCI and Non-Resident Nepalis Association-US, too signed a memorandum of understanding (MoU) to work together for the promotion of trade between Nepal and the US. Ambassador Dr Sharma and FNCCI President Joshi signed the MoU to this connection Wednesday.
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