'We are working together under TIFA to ensure opportunities for U.S. investors in Nepal'

Mara M. Burr is Deputy Assistant U.S. Trade Representative for South and Central Asia. She recently visited Nepal in the run-up to the Trade and Investment Framework Agreement (TIFA) council meeting chaired by secretary of the Ministry of Commerce and Supplies (MoCS) and USTR.

TIFA is the bilateral agreement between Nepal and the U.S. for strengthening trade and investment relations. While signing TIFA, the two countries had agreed to hold the council meeting once a year. But the meeting has not been held since TIFA was signed in 2011.

The agreement is signed to forge ground way for improving relations with Nepal through cooperation and collaboration. Pushpa Raj Acharya of Republica has talked with Burr about Nepal-US trade relations, preparations of the upcoming TIFA council meeting and foreign direct investment (FDI) from the U.S. Excerpts:

We were expecting TIFA council meeting at least once a year after signing TIFA in 2011, but why didn´t that happen so far?

There are particular reasons of delay, there were a number of issues that came up over the course of these years. In Nepal and in the United States.

 Nepal was drafting constitutions while signing TIFA and we´ve expected to sit then after, but you had frequent change in government here. Then there was election in the United States, and then election in Nepal.

 It was not lack of interest. Following the election we´ve been preparing for the council meeting. It was very difficult to schedule time to come to Nepal for the TIFA council meeting.

 We´ve had a several meetings with officials of the Nepali embassy in Washington; we held several meeting with previous ambassador Shankar Sharma and the deputy chief of mission. We´ve talked about trade and investment issues.

This is my first opportunity to come to Nepal. We´ve had first meeting in the U.S. after signing TIFA in 2011 and we´ve remained engaged with the Nepali embassy in the U.S. for holding the second meeting in Nepal.

TIFA is just a framework agreement; it does not give us the duty free access to the U.S. market. On the basis of TIFA, is there any bilateral agreement between the U.S. and Nepal?

With regard to our trade and investment relationship, I think we´re in a very early stage. So we need to cooperate more, discuss more regarding where trade and investment can be increased.

Nepali exporters expect the U.S. to widen the utilization generalized system of preferences (GSP) facilities on Nepali garments and other manufacturing products. Is it possible?

We´re hoping that the U.S. Congress reauthorizes the GSP program very soon and we´ll work with Nepal after the reauthorization of program to conduct some outreach in Nepal to make exporter and others aware of the program.

Don´t you think least developed countries like Nepal should get preferential market access in developed countries as they promised during the Hong Kong Ministerial meeting of World Trade Organization (WTO)?

As per my understanding, the commitments under Bali are very important for the United States, and we are looking for a successful outcome of the Doha Round. The Doha Round has not concluded and we´ve to see what the conclusion is to trigger the implementation of commitment. When Doha is concluded, countries will move for the implementation of that commitment.

What agendas will the U.S. and Nepal discuss during the second TIFA council meeting which is going to be held in Kathmandu?

We´ve to discuss on a wide range of issues related to trade and investment. As far as I know, the government in Nepal is doing homework to discuss agro sector, which is a part of their National Trade Strategy.

They are also working on other different areas to welcome US investment here on hydropower, tourism and so on. Likewise, they´ve prioritized the development of information and communication because you have very robust group of young people here who are developing intellectual property.

Are there any other specific agreements going to be signed during the TIFA council meeting?

We won´t be signing any additional agreements. TIFA has provided a framework for a whole range of trade and investment issues; there could be other things like memorandums of understanding.

We are at a very early stage and trying to work on trade and investment issues through the framework agreement. I don´t want to prejudge where that goes. I think we´ve lots of opportunities for a close collaboration.

While talking about foreign direct investment (FDI), Nepal is receiving more FDI from China and India. In this context, are there possibilities of attracting investors from the world´s largest economy?

Sure, here are many opportunities for investors from the United States. Works have to be done; American investors should be more aware about Nepal and opportunities here. We are talking with the Nepal government on how we can work together to ensure better situation in Nepal. Then opportunities may be available for U.S. investment. During the meeting with government officials, almost all of them have said that the government is eager and hopeful about U.S. investment in Nepal. We´ll work together under TIFA to ensure better situation and opportunities.

You´ve hold discussion with the Federation of Nepalese Chambers of Commerce and Industry on the first day of your visit, and they requested for hassle free participation of Nepali goods in trade fairs of the United States?

It would be wonderful to have Nepali traders to participate in the trade fairs of the United States. I tried to better understand what problems they have been encountering, and I think our embassy in Kathmandu and their colleague in the Nepali embassy in Washington are trying to help exporters to attend the trade fairs.

They can get in touch with the websites of customs and boarder protection to get the ideas about the rules of custom procedure, as well. The products carried for demonstration is not for sale so there are other requirements in customs to carry goods for demonstrating at the trade fairs.

Source: Republica