Our Stand in International Market (Vol. 1)


As we all aware of the geographical, demographic, socio-economical & political structure of our company, indirectly or directly influenced by neighbor country mostly from the south. We set the south neighbor as our bench mark who is herself a developing country. We fully rely on the trade with them however we are involved in globalize trade but at very negligible volume. We are not manufacturer of the products rather importer, which we people consume. While importing of the products, we have no choices of transportation rather roadways, which are also operated by the fuel imported from the same country because we have no direct contact with the original fuel suppliers. So we people bear the excessive cost of each and every household product because;

  • We are not manufacturer, fully rely on the import. Locally Produced products are not considered much reliable, consumer perception towards products are not being interlinked with nationalism.
  • The advertisement in the Medias creates the consumers volume, most of the media ignoring the locally made product to advertise because of the capability to pay by the companies.
  • The numbers of viewers of Local Medias are also very low; people spend more time to go through international channel especially south neighbor’s channels.
  • Fuel & Gas supplies from the same country from where others products are being imported.
  • Raw Materials for producing goods are being imported, on which different tariffs are imposed, which make the products obviously expensive.
  • No easy access to the sea ports which prevent us to flying in the global markets, in short, we have no choice.

International Treaty & Agreements

  1. Multilateral Trade Agreement: World Trade Organization forinternationalmed on the GATT-1994, shall provide the common institutional framework for the conduct of trade relations among its Members in matters related to the agreements and associated legal instruments.
  2. Regional Trade Agreements; SAFTA (South Asian Free Trade Area), The Contracting States established the South Asian Free Trade Area (SAFTA) to promote and enhance mutual trade and economic cooperation among the Contracting States, through exchanging concessions in accordance with this Agreement.


SAPTA – Agreement on SAARC Preferential Trading Arrangement signed in Dhaka on the 11th of April 1993;

BIMSTEC – The Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) is an international organisation involving a group of countries in South Asia and South East Asia. These are: Bangladesh, India, Myanmar, Sri Lanka, Thailand, Bhutan and Nepal.

3. Bilateral Trade Agreements: 

  • Trade & Investment Framework Agreement between Government of Nepal & United State of America to enhance the bonds of friendship and spirit of cooperation to expand trade, investment and technical cooperation and to strengthen economic relations on 15th April 2011.
  • Agreement of Co-operation between Government of Nepal & Government of India to control unauthorized Trade to prevent infringement and circumvention of the laws, rules and regulations of either country in regard to matters relating to Customs, Narcotics and Psychotropic Substances, Foreign Exchange and Foreign Trade and shall for this purpose assist each other in such matters as consultation, enquiries and exchange of information with regard to matters concerning such infringement or circumvention.
  • Nepal China Preferential Tariff Treatment :

The Government of the People’s Republic of China (hereinafter referred to as “China”) has decided to phase in zero-tariff treatment to 95 percent of the products originated in your country and exported to China. Within 2010, 60 percent of the products will start to enjoy zero-tariff treatment (please refer to Annex I for the list of products concerned). The tariff rates of the imported goods listed in Annex I will be reduced to zero after the two sides complete the exchange of notes and the Chinese side fulfills the relevant domestic procedures.                          

(Source: http://www.moc.gov.np/uploads/uploads/supp_docs/78_Letter%20of%20exchange.pdf)


However these all treaty and agreements signed by the government of Nepal with various government and institution with the motive to increase the share in the international market, to be globally recognized, but the things to judge ourselves that are we really benefited or not, capable to utilize or not.

Export by us;

Export: What we produce to export is based on the imported raw materials, from different country which become more expensive because of transportation cost. We still not able to utilize our own resources to produce the product, our 20% of export products are of agriculture and natural resources but limited in product and market diversification.

  1. Beverages: US$93.2 million (10.3% of total exports)
  2. Textile floor coverings:$90.9 million (10.0%)
  3. Plastics:$70.1 million (7.7%)
  4. Manmade staple fibers:$65.1 million (7.2%)
  5. Iron and steel:$60.9 million (6.7%)
  6. Clothing (not knit or crochet):$60.5 million (6.7%)
  7. Coffee, tea and spices:$44.9 million (5.0%)
  8. Knit or crochet clothing:$39.3 million (4.3%)
  9. Iron or steel products:$37.6 million (4.1%)
  10. Other textiles, worn clothing:$31.3 million (3.4%)


Will be continued………………………



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