Nepal, China holding IETC meeting after a 7-year gap

KATHMANDU, Dec 16:

Nepal and China are holding Nepal-China Intergovernmental Economic and Trade Committee (IETC) meeting after a gap of seven years.

A 10-member team led by Finance Secretary Suman Prasad Sharma left for Beijing on Monday to participate in the meeting.

Though Nepal´s trade deficit with its northern neighbor has been surging with each passing year, the two countries had failed to hold IETC meeting -- a bilateral committee to foster better economic relations -- in the past seven years.

Nepal´s trade deficit was Rs 21.51 billion in 2007/08. It, however, soared to Rs 75.58 billion in 2013/14.

According to officials, the agendas for the two-day meeting include improving trade imbalance and seeking support for different infrastructure projects, particularly on the Kathmandu-Rasuwagadhi trade route. Similarly, Nepali officials plan to request Chinese authorities to open branch offices of Chinese banks in Nepal, attract Chinese investment in different sectors, and increase Chinese assistance, among others.

Madhu Marasini, joint secretary at the finance ministry, who is also in the team, said the IETC meeting couldn´t be held on a regular basis in the past due to political transition in Nepal. Now that the meeting has resumed, we are hopeful that pressing trade issues will be resolved accordingly, he added. "We will seek Chinese support to tame the widening trade deficit. Similarly, we will also request Chinese officials to assist Nepal in infrastructure projects," said Marasini.

Commerce Secretary Narayan Gopal Malego said the meeting will focus on bilateral trade facilitation as well as improving Nepal´s export and trade facilitation measures.

In November, China added 199 products in the duty free, quota free list, raising the number of products in the list to 8,030. Despite this Nepal´s trade deficit with China has been increasing. Experts say low production, and lack of production standardization and trade facilitation are the reasons behind Nepal´s ballooning trade deficit with China.

Malego stressed on inter-ministerial coordination for better trade scenario for Nepal.

“Seeking Chinese support for development of trade routes, including Kathmandu-Rasuwagadhi, and improvement of Araniko Highway is one of the agendas of the meeting, Malego added.

China is the second largest trading partner of Nepal after India.

Tourism Secretary Suresh Man Shrestha and director general of Department of Customs Surya Prasad Acharya, among others, are also in the delegation.

Source: Republica