Trade deficit with China increasing dangerously
KATHMANDU:
Increasing trade deficit with China is going to pose serious threat to domestic economy, according to government officials.
Speaking at the interaction on ‘Promoting Investment and Trade in Nepal’ in the capital today, secretary at Ministry of Commerce and Supplies said that trade deficit with China has been steadily increasing in a manner that may be dangerous.
“Trade deficit with India is at constant level compared to China,” he said, adding that Nepal is left with no option than to increase export volume of goods. “The government should take product specific, country specific and market specific approach to minimize trade deficit.”
The total trade between China and Nepal increased from Rs 14.784 billion in 2004-05 to Rs 40.2 billion in 2009-10 resulting in 172 per cent increment in the trade, Pancha Ratna Shakya of Nepal-China Chamber of Commerce and Industry said, adding that the export to China has, however, decreased by 46.5 per cent in 2009-10 compared to in 2004-05, whereas the import has seen increased by 205 per cent.
Nepal exported low value added products like handicrafts, fat, oil, parts and juices and imported high value added goods like electronics, automobiles parts, industrial raw materials and others, Shakya, said, emphasising need to take maximum advantages from zero tariff treatment.
However, zero tariff alone would not be sufficient to gain market access in China. “The country needs to build up export infrastructure for problems relating to China’s non-tariff barriers standard and certification.”
In order to boost export, the government should create an environment conducive to Foreign Direct Investment (FDI), he stressed.
“Security problems, energy and certification hurdles, labour unrest and time consuming decision making process are major problems for FDI,” he added.
The government should immediately construct Dry Port at Larcha, Sindhupalchowk as committed in the budget, chairman of Nepal-China Chamber of Commerce and Industry Dr Rajesh Kazi Shrestha said, adding that the government should also establish SEZs in Panchkhal at the earliest.
Nepal should focus on export-oriented FDI, senior instructor at Revenue Administration Training Centre Basu Sharma said, adding that trade difict will directly hit Gross Domestic Product (GDP).
Ban on export
Chinese government has banned import of different goods from Nepal, according to Nepal-China Chamber of Commerce and Industry chairman Rajesh Kazi Shrestha. “Chinese government banned export of different food stuffs including chocolate, wheat flour along with others, he said, urging the government to hold immediate talks with Chinese counterpart to solve the problem. “It is heard that the food stuffs have been exported into China by porter promoting black-market,” he added.
Source: THT
Increasing trade deficit with China is going to pose serious threat to domestic economy, according to government officials.
Speaking at the interaction on ‘Promoting Investment and Trade in Nepal’ in the capital today, secretary at Ministry of Commerce and Supplies said that trade deficit with China has been steadily increasing in a manner that may be dangerous.
“Trade deficit with India is at constant level compared to China,” he said, adding that Nepal is left with no option than to increase export volume of goods. “The government should take product specific, country specific and market specific approach to minimize trade deficit.”
The total trade between China and Nepal increased from Rs 14.784 billion in 2004-05 to Rs 40.2 billion in 2009-10 resulting in 172 per cent increment in the trade, Pancha Ratna Shakya of Nepal-China Chamber of Commerce and Industry said, adding that the export to China has, however, decreased by 46.5 per cent in 2009-10 compared to in 2004-05, whereas the import has seen increased by 205 per cent.
Nepal exported low value added products like handicrafts, fat, oil, parts and juices and imported high value added goods like electronics, automobiles parts, industrial raw materials and others, Shakya, said, emphasising need to take maximum advantages from zero tariff treatment.
However, zero tariff alone would not be sufficient to gain market access in China. “The country needs to build up export infrastructure for problems relating to China’s non-tariff barriers standard and certification.”
In order to boost export, the government should create an environment conducive to Foreign Direct Investment (FDI), he stressed.
“Security problems, energy and certification hurdles, labour unrest and time consuming decision making process are major problems for FDI,” he added.
The government should immediately construct Dry Port at Larcha, Sindhupalchowk as committed in the budget, chairman of Nepal-China Chamber of Commerce and Industry Dr Rajesh Kazi Shrestha said, adding that the government should also establish SEZs in Panchkhal at the earliest.
Nepal should focus on export-oriented FDI, senior instructor at Revenue Administration Training Centre Basu Sharma said, adding that trade difict will directly hit Gross Domestic Product (GDP).
Ban on export
Chinese government has banned import of different goods from Nepal, according to Nepal-China Chamber of Commerce and Industry chairman Rajesh Kazi Shrestha. “Chinese government banned export of different food stuffs including chocolate, wheat flour along with others, he said, urging the government to hold immediate talks with Chinese counterpart to solve the problem. “It is heard that the food stuffs have been exported into China by porter promoting black-market,” he added.
Source: THT
