MoCS to issue white paper on foreign trade status

KATHMANDU, Aug 9:

The Ministry of Commerce and Supplies (MoCS) is planning to issue white paper on existing foreign trade status of Nepal.

The document is to define the role of the sectoral ministries for import substitution and product development to boost exports, said Minister for Commerce and Supplies Sunil Bahadur Thapa, “There is general concept among people that MoCS is responsible for trade-related issues.”

The white paper will give emphasis on integrated approach among ministries and other government agencies. MoCS has said that the success of trade policies depends on the role of sectoral ministries.

 “Trade is cross-cutting and collective effort has to be made by sectoral ministries,” Minister Thapa said, adding, “Sectoral ministries are for taking trade as an area of responsibility of MoCS.”

Nepal suffers trade deficit with all its trading partners, except the United States.

The energy ministry and agriculture ministry are responsible for Nepal´s major imports -- petroleum and agro products. Petroleum consumption is increasing because of energy crisis.

“If the energy ministry develops new hydropower projects, we will not have to solely rely on petroleum products,” Minister Thapa told Republica. The country has imported petroleum products worth Rs 123.43 billion and agriculture products worth Rs 33 billion in the eleven months of fiscal year 2013/14.

Similarly, the country has imported automobiles and auto parts of Rs 36.34 billion in the review period, which can be reduced by better management of public transport.

MoCS has said that the import of non-tradable goods should be reduced to minimize trade deficit. It has also said that programs of the sectoral ministries should be aligned with trade policies.

 MoCS has defined the products and services of comparative and competitive strength for boosting export trade, but no effort has been made so far for product development. MoCS has also sought the support of the concerned ministries for developing products and services to reduce trade deficit.

Source: Republica