Nepal's Trade and Transit Problems
Summary
Nepal faces challenges in trade competitiveness due to a narrow export base, dependence on India for transit, and international standards affecting exports. The country must improve production scale, simplify trade procedures, and develop dry ports to enhance its trade profile.
Key Points
- Nepal's export base is narrow with major exports including carpets, garments, and oils, but faces competition and market challenges.
- India’s trade policies and transit controls significantly impact Nepal’s foreign trade, increasing costs and complicating exports.
- Trade facilitation is hampered by burdensome procedures and non-tariff barriers despite tariff rate reductions.
- Development of dry ports and exploring alternative transit routes are crucial to reducing transit costs and promoting exports.
