Nepal not being able to capitalise on DFQF provision

KATHMANDU, MAR 25 - Although Nepal has been permitted Duty Free Quota Free (DFQF) access to almost all the developed countries, it has failed to get full benefit of the provision.

Barricades to trade include lengthy documentation procedure, issues related to the certificate of origin and visa process, said the Ministry of Commerce and Supplies.

The World Trade Organisation conference held in Bali, Indonesia, on December 3-6, 2013, agreed to promote DFQF access for Least Developed Countries (LDCs) provided it be accompanied by simple and transparent rules of origin. The conference asked the LDCs to put in place a provision of self certification and mutual customs cooperation and monitoring to take full benefit of the DFQC facility.

Ravi Bhattarai, under secretary at Ministry of Commerce and Supplies, said market access is not the major problem for LDCs like Nepal . Presenting a paper at an interaction here on Monday, Bhattarai said due to different rules of origin maintained by developed countries, LDCs have not been able to cash in on the DFQF provision approved at the Bali meet.

Bhattarai said almost all developed countries, except for the USA, have agreed to increase 99 percent DFQF from 97 percent in goods other than agriculture products. “However, intricate documentation process and complex visa procedures in a number of the countries have impeded us to flourish our trade in the countries,” he added.

Bhattarai urged enhancing supply capacity and quality of domestic products to capitalise on the provision. He stressed on upgrading existing labs and establishing new accredited labs to remove supply constraints and non-tariff barriers of trade.

The Bali conference mainly discussed issues related to DFQF provision, preferential rules of origin and implementation of services waiver on behalf of LDCs. All WTO member states adopted the Bali package consisting of 10 documents on trade facilitation, agriculture, cotton and issues of the LDCs.

The Bali Declaration also included five draft agreements on Trade-Related Aspe-cts of Intellectual Property Rights, non-violation and situation complaints, work programme on electronic commerce and small economies, aid for trade and trade and transfer of technology.

Admitting that the Nepal i delegation could not raise the country’s interest, he stressed on the need for forming separate team to negotiate at WTO.

Source: The Kathmandu Post