Call to align NTIS with three-year interim plan
KATHMANDU, March 13:
Stakeholders have stressed the need to review the Nepal Trade Integration Strategy (NTIS) -- a government roadmap to promote exports of selected products -- within six months to align it with the three-year interim that begins from the next fiscal year.
Speaking at a workshop on ´Mainstreaming Trade in Development Process´ organized by the Nepal Enhanced Capacities for Trade and Development (NECTRADE) and the Ministry of Commerce and Supplies (MoCS) here on Wednesday, they have also called for mainstreaming of trade at all levels - political, sectoral, development partners level and local - to develop it as a main pillar of development.
“Mainstreaming trade in itself is a means to an end and the end is how much export growth that we have been able to achieve, what is the volume of trade deficit that we have reduced and what is the export diversification that we have achieved,” Ratnakar Adhikari, executive director at Enhanced Integrated Framework (EIF) - the executive secretariat at WTO, said. Trade should be the main agenda of the government to pursue as well as the main pillar of the development for all stakeholders, he added.
The speakers, however, said no product should be removed from the list while reviewing it. “We have included the products and services in the NTIS after a long homework. Removal of the products from the list will create problems,” former commerce secretary Purushhottam Ojha said.
The government introduced NTIS in June 2010 to bring down ballooning trade deficit by promoting local products having high export potential. It has included 19 products -- 12 goods and seven services - in the list on the basis of past export record and their potential.
Jacqueline Growth, head of development cooperation at the German Embassy in Kathmandu, hailed the government move to recognize trade as one of the key pillars for economic development and poverty alleviation in the periodic plan. She, however, pointed out trade not getting priority in developing partner´s (DP) country strategy as a major constraint in mainstreaming trade.
“There is a need to strengthen the coordination between developing partners and the government,” Growth said, suggesting the government to institutionalize National Implementation Unit at NECTRADE, MoCS, to mobilize and absorb trade assistance of the DPs.
Buddhi Prasad Upadhyay, EIF national program manager at NECTRADE, MoCS, said MoCS should coordinate to reduce the ballooning trade deficit of the country by boosting productivity and exports. “There is an important role of development partners, private sectors, local government and political parties to mainstream the trade policy,” added Upadhyay.
Hemant Dawadi, director general of Federation of Nepalese Chamber of Commerce and Industry (FNCCI), called on the government to involve private sector in trade negotiation. “Development partners should not be behind the façade of the government, saying that their partner is only the government. They can help the private sector by supporting the Nepali entrepreneurs in seeking market information and access at the international level as well as capacity building of the private sector,” he added.
Similarly, Manoj Kedia, vice president of Confederation of Nepalese Industries, said time-bound plan should be put in place to enhance productivity of the private sector.
Pradeep Jung Pandey, vice president of FNCCI, echoed Kedia and said there is no alternative to increasing production to reduce trade deficit. “There, however, are many bottlenecks like policy flaws, labor unrest and energy crisis, among others. The government should come up with appropriate policies and plan to address them,” he said.
Data compiled by Trade and Export Promotion Center (TEPC) shows total exports of NTIS products fetched Rs 26 billion in fiscal year 2012/13, compared to Rs 21 billion in 2010/11.
Source: Republica
