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Trade Policy Review given to WTO

Nepal's Trade Policy Review given to WTO(Kathmandu Post, Jan 11,2012)

The government submitted the report of the Trade Policy Review (TPR) to the secretariat of the World Trade Organization (WTO) on Monday. As per the provision of the WTO, the Ministry of Commerce and Supplies (MoCS) had prepared the draft of the TPR report.
This is the first time that Nepal has reviewed its trade policy after becoming a member of the WTO in 2004. The WTO protocol states that each member nation needs to revisit its trade policy in a particular time frame. As per the protocol, the least developed countries should review its trade policy every six years. The WTO has determined the timeframe for the review of the trade policy for developed and developing countries at two and four years.
MoCS officials say the TPR report forwarded to the WTO has synchronized the government’s priorities and commitments with the WTO. “We have given a clear picture of the international trading status of Nepal highlighting its strengths and constraints evaluating the existing trade situation,” said Toya Nath Gyanwali, WTO chief at the MoCS.
The TPR, according to the MoCS, has stressed the fact that Nepal’s trade exports have been unstable with the country losing billions of rupees every year in international trade. MoCS data shows that the value of Nepal’s imports has almost tripled in the last seven years but export growth has been minimal.
Trade expert Ratnakar Adhikary said that Nepal’s own constraints including lack of infrastructure, expensive cost of doing business and decline in local production had prevented Nepal from getting benefits from WTO membership.
Adhikary, who specialises in WTO issues, said it’s not that Nepal can do remarkably well only by getting WTO membership, but local production should be increased. “Though negotiations with the WTO can be a platform for finding international markets to sell local products, Nepal so far hasn’t been able to benefit in this regard,” he said.
Gyanwali said that the fact that the political transition has made it difficult for the country to keep tabs on trade issues resulting in the failure of the country to comply with the promises made during the time of WTO’s membership has also been specially emphasized. “In this context, we hope that the TPR which has just been submitted will help to reduce the gap between Nepal’s commitments to the WTO and its actual fulfillment,” said Gyanwali. The review has incorporated emerging priorities and analyzed the global market and trade laws to strengthen the country’s position in the international market. “The secretariat will go through policy reforms in Nepal, policies related with different trade and Nepal’s political scenario affecting trade,” added Gyanwali.
The MoCS had been working on TPR review from last year during which it had consultations with other ministries, government agencies and stakeholders.

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