WTO flags Nepal’s weak manufacturing base and narrow export markets
Summary
The WTO says Nepal’s manufacturing base remains weak and its exports are heavily concentrated in India despite customs reforms and policy changes. The report urges Nepal to boost production capacity, diversify markets, and strengthen trade logistics to improve its trade performance.
Key Points
- Nepal’s manufacturing sector contributes just 4.9 percent to GDP, and about 68 percent of merchandise exports go to India.
- The WTO review says Nepal has made reforms in customs and investment laws, but implementation gaps continue to limit trade facilitation.
- The country remains reliant on remittances and faces a merchandise trade deficit equal to 24.3 percent of GDP.
- WTO and OECD officials urged developing countries like Nepal to expand production, attract investment, improve digital connectivity, and strengthen supply chains.
