Outgoing EU envoy suggests trade, investment diversification for graduation

Kathmandu, Aug. 5

Ambassador of the European Union to Nepal, Nona Deprez, who has completed her term as the head of the EU Delegation to Nepal, said that diversification of trade and investment could help Nepal in its graduation process from the Least Developed Country (LDC) to a developing one.

"There is still great potential to diversify trade and investment to make Nepal more resilient, less reliant and fit for its graduation from the LDC status," she said while speaking at her farewell programme organised by the European Economic Chamber (EEC) in the Capital on Friday evening.

According to her, for sustainable graduation from the LDC status, Nepal needs continued support in building human capital, trade negotiation, a decent work agenda, and integration into bilateral, regional, and global value chains.

As Nepal is set to be upgraded into a 'developing country' in 2026, various countries and multilateral development partners are supporting it in making the transition smooth.

In the same line, the EU is raising awareness among the policymakers and the private sector at the federal, provincial and local levels to formulate the mitigation strategies, including the most favourable market access through the EU GSP Plus.

"With our aid for trade cooperation, we are supporting to attract more investment in the export-oriented SMEs in Nepal from the EU member states and private investors by helping the ministry to create a model one-stop service for the potential investors," Deprez said.

She also maintained that participation of women in the economy is an equally important concern for the EU. According to her, as long as only one quarter of women participate in the labour force or even worse, work in the informal sector, Nepal will miss many opportunities to make the graduation sustainable, make full use of economic value chains, and provide equal opportunities as per the constitution.

Speaking at the event, President of the EEC, Narayan Bajaj, appreciated Deprez's involvement in humanitarian efforts, bilateral trade promotion, and sustainable and inclusive growth in Nepal.

He said that the EU has been a critical partner in bolstering Nepal's trade and investment landscape. Bilateral trade has witnessed a substantial growth, and the EU remains one of Nepal's most significant trading partners, paving the way for economic growth and employment opportunities.

The EU has been extending its support including the financial aid in the sector of pashmina and coffee, capacity building in advocacy, trade support facility and capability enhancement, development of trade portal, among others.

Bajaj said that the EU has been at the forefront in providing development aid to Nepal in the areas of infrastructure, education, healthcare and agriculture as well in climate change and renewable energy.

Founding President of the EEC, Dibya Mani Rajbhandari, said that Nepal should devise strategy to utilise the trade and investment potential in the EU member countries.

Meanwhile, Lorenzo Veronique is joining the EU Delegation to Nepal as the ambassador soon.

 Published in The Rising Nepal daily on 6 August 2023.