Opinion | Roller-coaster of global trade
Summary
Geopolitical tensions and protectionism are reshaping global trade, affecting Nepal's export opportunities and necessitating focused strategies on niche products, quality assurance, and market diversification.
Key Points
- The international trading regime is shifting due to geopolitical tensions and the rise of protectionism, led by the US administration's imposition of variable tariffs.
- Nepal faces a baseline 10% duty from the US with potential to increase, affecting its negligible role in the global supply chain due to low productivity and high costs.
- Nepal should promote niche agricultural and mineral products, enhance quality assurance, explore untapped South Asian markets, and diversify exports beyond traditional markets.
- Developing digital services and infrastructure, pursuing policy reforms, and supporting innovation are crucial for Nepal to adapt to changing global trade dynamics.
