• China expands list of duty free products

    November 28, 2012

    Kathmandu : China has increased the list of Nepali products that will get zero tariff facility.

    “China has increased the list to 7,787 products from 4,721 products allowed for easy access to China in 2010,” said commerce secretary Lal Mani Joshi.

    China has offered duty free entry facility from Least Developed Countries including Nepal but the country has been failing to take advantage from the earlier list because most of the products in the zero tariff list were not products of Nepal’s export interests. Nepal exported around 368 products from zero-duty list to China in 2011-12.

    Nepal’s trade deficit with China has been constantly increasing as Nepal does not have a strong product basket, and also lacks capacity to export due to supply side constraints. Nepal’s trade deficit with China in 2010-11 was Rs 45 billion and was up to Rs 52 billion last fiscal.

    Though there is increasing demand for agro-based products in China, land connectivity coupled with bureaucratic hurdles, besides power crisis and labour troubles are key bottlenecks in increasing exports to the Chinese market.

    Data of Trade and Export Promotion Center revealed that Nepal suffered a trade deficit of around Rs 52 billion with China in fiscal 2011-12, when Nepal exported goods worth Rs 985.6 million and imported goods worth Rs 52.92 billion. THT

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