Nepal, US start preparations for TIFA council meeting

KATHMANDU, July 28:

Nepal and the United States of America (USA) are planning to hold the first Trade and Investment Framework Agreements (TIFA) Council Meeting, three years after the signing of TIFA.

The two countries had signed TIFA on April 15, 2011.

Deputy Assistant Trade Representative of US Mara Burr is visiting Nepal in the last week of August to arrange the meeting, according to officials.

The TIFA Council Meeting is jointly chaired by the secretary at the Ministry of Commerce and Supplies (MoCS) and the United States Trade Representative (USTR)
“The US delegation led by Burr and MoCS officials will discuss on the agendas for the council meeting and also fix the date,” Toya Narayan Gyawali, joint secretary at the MoCS, told Republica. “The preparatory meeting will be held on August 30.”

•    Preparatory meeting on August 30

•    TIFA council meeting also to be held in Kathmandu

•    Nepal expects to widen areas of utilization of

Generalized System of Preferences (GSP) facilities

According to Gyawali, the TIFA Council Meeting will also be held in Kathmandu.

While signing TIFA, the two countries had agreed to hold the council meeting at least once a year to ensure effectiveness of the bilateral agreements. But the meeting hasn´t been held since TIFA was signed in 2011.

Officials say the upcoming council meeting will cover wide range of issues related to trade and investments. “During the meeting, Nepal will showcase different projects in hydropower, tourism, industry and service sectors to before the US investors,” Gyawali said.

Nepal expects to widen the areas of utilization of Generalized System of Preferences (GSP) facilities provided by US government to major Nepali export products like readymade garments and pashmina products, among others.


Likewise, Nepal will also seek US support on establishment of labs, accreditation centers and trainings for government officers to empower them in trade negotiations and trade analysis. It will also request for cooperation on patent, trademark, and industrial designs for promoting Nepali goods in the international market.

Businesspeople have been saying that participation in trade fairs in US is a must to promote Nepali products in the world´s largest economy. “Our export to US is declining is most of the years in the last decade,” Narendra Kumar Basnyet, president of Nepal-USA chamber of Commerce and Industry, said, “We have to attract US investors on potential areas like hydropower, and tourism and hospitality sector as per the spirit of TIFA.”

Currently, Nepal enjoys trade surplus with USA. Nepal´s trade surplus has been increasing gradually following the global financial crisis of 2008. Nepal enjoyed trade surplus of Rs 840 million with the US in the first eleven months of 2013/14. In the review period, Nepal exported goods and services worth Rs 6.37 billion to USA and imported goods amounting to Rs 5.53 billion from the world´s largest economy.

Woolen carpet, readymade garment, handicrafts, silver jewelry, woolen and pashmina products, handmade paper products, precious stones, and articles of apparel and clothing accessories are Nepal´s major exports to US.

Similarly, Nepal imports aircraft spare parts, machinery and mechanical appliances, optical photographic cinematographic parts, pharmaceutical products, man-made staple fibers, edible vegetables, cereals, and essential oil and perfumery cosmetics from US.

Source: Republica