FNCCI President calls for continuation of duty-free access to boost exports to the US

KATHMANDU: Federation of Nepalese Chambers of Commerce and Industry (FNCCI) President Chandra Prasad Dhakal has stressed the importance of maintaining duty-free access to sustain and increase exports to the United States.

Speaking at a programme jointly organised by the FNCCI, Garment Association of Nepal, Nepal-US Chamber of Commerce, USAID, and the Federation of Export Entrepreneurs Nepal, Dhakal highlighted the opportunities and challenges of Nepal-US trade and investment. He noted that the duty-free access on 77 products, granted by the US following the 2015 earthquake, is set to expire next year. The upcoming Trade and Investment Framework Agreement (TIFA) Council meeting, scheduled for next week, is crucial for discussing the continuation of this facility and the reinstated Generalised System of Preferences (GSP) facility.

Dhakal emphasised the need for joint efforts by the government and the private sector to ensure the continuation of duty-free access, especially as Nepal graduates from the least developed country status.

Krishna Raut, Secretary of the Ministry of Industry, Commerce and Supplies, stated that the government would discuss the matter with the US based on suggestions from the private sector. 

Ganesh Parajuli, member of the House of Representatives, assured that he would advocate for the continuation of these facilities at the parliamentary level and other relevant platforms.

FNCCI Senior Vice President Anjan Shrestha called for increased efforts to boost exports to the US. 

Garment Association of Nepal President Pashupatidev Pandey urged the government to prioritise lobbying with the US at this critical time. 

Nepal-US Chamber of Commerce and Industry President Kiran Saakha highlighted the need to focus on assistance programmes for trade, in addition to increasing exports. 

Federation of Export Entrepreneurs Nepal President Shankar Pandey stressed the importance of increasing the volume of exports to the US.

The TIFA agreement, signed between Nepal and the US in 2011, was expected to lay the groundwork for bilateral investment and trade agreements. However, significant progress has yet to be made. Stakeholders have expressed concerns that the potential loss of these facilities could lead to a decline in exports to the US, Nepal's second-largest export destination.