Trade policy 2072

Presented By:Group 1

Anjana JoshiAshrit Maskey

Asik BaselBandana Khadka

Bijay PandeyBindu Panta

Set of rules and regulations that are intended to change international trade flows, particularly to restrict import.

The basis for this trade policy is the Trade policy of 2009 .

It has taken into consideration how the neighboring and other similar country has benefited from the international trade.

This new trade policy 2072 has been formulated to take benefit from bilateral, regional and multilateral trading arrangements.

Introduction

After 2046 our country moved forward to an open and liberalized economy.

Prior trade policies include trade policy 2049, trade policy 2065.

The 13th annual 3 year plan also focused on the importance of trade.

Nepal Trade Integration Strategy, NTIS 2010 includes framework for the development of trade.

Contd…

It aims to : promote domestic industries Manage growing imports Boost exports

So that trade becomes an engine for the economic development of the country.

Major Objective

Nepal became the member of WTO on April 23,2004 in order to take benefit from the opportunities provided to LDC.

Nepal faces a huge trade deficit, due to high imports and minimal exports.

The major cause of this problem are: Insufficient infrastructural development

poor labor relations

weak institutional framework

Current Situation

Poor investment-friendly environment

Low FDI

No match between population growth and production

High remittance leading to consumption of imported goods

Post impact of earthquake and blockade (more widening trade deficit)

Contd…

Reduction of trade deficit

Export is mainly comprised of low value added manufactured and agricultural products.

Overall decline in production and productivity.

Unable to capitalize on products and services as per NTIS,2010.

Main Problems and Challenges

Weak quality testing, authentication, labeling and packaging.

Poor infrastructure that is not conducive to do business.

Lag in the implementation of Special Economic Zone (SEZ).

Insufficient power supply i.e. energy crisis.

Contd…

According to the 13th Annual Year Plan:

Nepal will become developing country from LDC category by 2079 B.S. (2022).

Reduce poverty line to 18 percent.

Trade policy provides an impetus to do so with an appropriate vision, strategies, objectives and working procedures.

Need for new trade policy

To enhance the capacity of export-oriented service firms: (Engineering, Tourism, IT, Business process outsourcing, Health and Human Resource Development)

To increase the competitiveness of the domestic product.

To align the policy with other related policies that have larger impact on trade.

Other Objectives

To boost production by reducing supply side constraints.

To reduce the trade deficits through promotion of high value added exports.

To promote and protect IPR rights at regional and international level.

Contd…

Government plays the role of facilitator, guardian and regulator increasing the participation of private sector.

Reduce trade deficit by reducing the import.

Goods with comparative and competitive advantage will be identified and promoted in export.

Improve the competitiveness of export-oriented service area.

Decrease transaction costs through procedural simplification and institutional consolidation.

Strategies

Expand market by utilizing bilateral, regional, multilateral opportunities with economic diplomacy for trade expansion.

Improving both the goods and service competitiveness as complementary to each other in terms of regional and international production network.

Promoting and increasing trade expansion related to IPR in global market.

Contd…

Enhancing the role and professional capacity of government and private sector entities.

Promoting export oriented products of firms having competitive and comparative advantage.

Reducing import to reduce trade deficit.

Increasing competitiveness of export-oriented firms (service).

Reducing transaction costs through procedural simplification and institutional strengthening.

Policy

Establishing business as mainstream of the economy.

Expand market by utilizing bilateral, regional, multilateral opportunities with economic diplomacy for trade expansion.

Improving both the goods and service competitiveness as complementary to each other in terms of regional and international production network.

Promoting and increasing trade expansion related to IPR in global market.

Contd…

Both processed and non-processed goods

Other than India

Flat percent of 1(up to 30%) and 2(more than 30%)

Based on value addition

Cash incentives scheme

Institutional arrangementsThe policy has made provision for the following institutions

i) Board of Trade: It consists of 23 members. Its functions are:

Assist in trade-related policy formulation

Coordinate implementation of trade policy

Recommend amendments in trade policy

Give suggestions to the government to remove obstacles to open and liberalize trade.

Carry out other activities related to trade facilitation

ii) Trade promotion institute: Concert trade and export promotion centre into an autonomous Trade Promotion Institute

iii) Special economic zones and Processing zones

Contd…

Help Nepal to export