Sunday, July 28, 2024

Nepal seeks preferential trading facility from China

 Kathmandu, July 24

Foreign Secretary of Nepal, Sewa Lamsal has said that China should give priority to providing preferential trading facilities to Nepali products amidst the existing huge trade deficit between the two countries.

"Nepal appreciates China for providing duty-free quota-free access to more than eight thousand Nepali products. However, a huge trade deficit exists. There is a need to consider the matter with priority for providing wider preferential trading facilities to Nepali products," she said while addressing the fifth China-South Asia Cooperation Forum in Kunming, China, on Wednesday.

The trade gap between the two neighbours is astonishingly high with Nepal having a negligible export. China is the largest source country of Foreign Direct Investment in Nepal and the second largest trading partner.

In the last Fiscal Year 2023/24, Nepal exported goods worth Rs. 258.8 million to China but the import size was Rs. 298.77 billion.

According to Lamsal, a large number of Chinese tourists visit Nepal every year. "We are jointly celebrating Visit Nepal year 2025 in China on the happy occasion of the 70th anniversary of the establishment of the diplomatic relations between Nepal and China," she said while inviting Chinese people to visit Nepal

She also said that since Nepal is set to graduate from the Least Developed Country (LDC) status by 2026, Nepal needs enhanced and commensurate levels of resources and technology in its development efforts during and after graduation.

Lamsal expressed her confidence that Nepal would receive more cooperation in the areas of trade, investment, infrastructure development and technology transfer, from the development partners, including China.

She termed the forum an important platform for intergovernmental and high-level policy dialogue and maintained that it has significance in garnering collective synergy for the enhanced level of economic and trade cooperation as well as people-to-people exchanges in South Asia region.

According to her, the Forum including the expo can play a key role in promoting cooperation in the South Asia region which treasures huge development potential in the region and beyond.

"The China-South Asia partnership is about connectivity, prosperity and future outlook that is instrumental to narrow down the gaps and deepen the mutual understanding and cooperation," said Lamsal.

The Forum has not only provided important opportunities for the producers and consumers to be closer to each other for their mutual benefit but also created an opportunity to bring both governments and private sectors from the region to one place to work for mutual benefits, she maintained.  

Foreign Secretary Lamsal also expressed Nepal's desire to work with the Government of China to further elevate cooperation in areas such as trade, tourism, investment, education, culture, and people-to-people exchange.

Meanwhile, she expressed Nepal's confidence in further strengthening the relations with China in multiple areas of cooperation in future.

"The Government of Nepal attaches great significance to the Memorandum of Understanding on strengthening the development Cooperation in Building the Trans-Himalayan Multidimensional Connectivity Network," she said. 

 Published in The Rising Nepal daily on 25 July 2024.        


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