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350 Nepali goods get duty free access to China
KATHMANDU, MAY 14 -
China signed an agreement on Friday with Nepal to allow duty free access of goods produced here to the northern neighbour.
Secretary at Ministry of Commerce and Supplies (MoCS) Purushottam Ojha and Chinese Ambassador to Nepal Qiu Guohong signed the pact on the behalf of their countries.
China will provide duty free access for 4,721 goods of Least Developed Countries (LDC), including 350 produced in Nepal, to its market. “It covers 60 percent of goods China imports from LDCs,” said the ambassador, expressing willingness to expand the list up to 95 percent. Since 2003, Nepal has been demanding the privilege for 497 goods. “This agreement will help increase our export to China,” said Ojha, adding that China has been urged to provide such facility to additional Nepali goods.
China has said Nepal can export goods produced in Special Economic Zones (SEZ). Talks have been going on for a decade about establishing an SEZ at Panchkhal in Kavrepalanchowk targeting the Chinese market. A bill to that effect has been pending in the parliament for one year.
Binod Choudhary, Constituent Assembly member and President of Confederation of Nepalese Industries also urged China to assist in setting up an SEZ here. Nepal can now export woollen carpet, coffee, leather ware and silver ornaments while discussions are underway regarding other exports, according to Surya Silwal, joint secretary at the ministry.
Nepal is required to maintain 40 percent value addition to the goods for export to China in the new arrangement.
India and European countries, however, have accepted value addition of 30 percent.
According to latest data, Nepal’s trade deficit with China stands at Rs. 32.31 billion.
In the fiscal year 2008/2009, the country imported Chinese goods worth Rs. 34.46 billion whereas the export earned a meagre Rs. 2.15 billion. Handicraft, vegetable ghee, medicinal herbs and wheat floor are among Nepal’s exports.
Posted on: 2010-05-15 08:33
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