US Embassy, Kathmandu and AmCham-Nepal jointly organized a “US Business and Investment Facilitation Workshop” workshop on 28th July 2022. On behalf of NUSACCI, Kiran P. Saakha, President, participated in the workshop as well as contributed in the panel discussions on the theme entitled “Improving Nepal’s Investment Climate and Business Environment: Opportunities, Challenges and Reforms”. He focused his discussion on the questions raised by the moderator i) scope of the members and how NUSACCI assist them in facilitating business? and ii) What are the underlying reasons for Nepal’s trade with USA in deficit position and how this scenario be changed? Which area seems to be of interest to the US?

Mr. Saakha highlighted that NUSACCI was almost three decades old organization. It has been closely working with members, non-members, GON, Nepal Embassy, US Embassy, Commodity Association. NUSACCI facilitates and advocates on the issue related to rules and regulations to Nepal US Trade and Investment, US market, market trend, buyer behaviors, compliance, sensitivity in delivery, quality and payment system. NUSACCI also extends cooperation and facilitate to American Companies in Nepal. No matter whether they are members or not.

Nepal signed first trade agreement with USA on 25th April 1947. The year 2022 marked as 75 years of diplomatic relations between two countries. Currently, Nepal export to USA and import from USA stands 2nd and 4th position respectively. Till 2004, Nepal’s major source of foreign currency through the export of carpet and garment. After expiry of multi-fibre agreement it declined significantly. Nepal is enjoying duty free entry of Nepali goods to USA in 77 items. In fact, 5 items categorically cover 75 different HS code items enjoy duty free entry to US from Nepal. Few major exportable items such as carpet and pashmina falls under this facility. There is a great opportunity for Nepal to expand export of these products in a significant way. Nepal is enjoying the dutyfree facility for these 77 categories till December 31st, 2025 but as per Trade and Export Promotion Centre (TEPC) no more facility is available under GSP.

One of the main reason that Nepal product facing difficulties to compete with other countries products is due to the high cost of logistic, high surcharge in the freight rate, high transit cos, absence of direct cargo flight. Nepal not yet considered by USA to trade preference act of similar nature as extended to African and Caribbean countries throught African Growth and Opportunity Act (AGOA) and Caribbean Basin Trade Partnership Act (CBTPA) countries.

United States is always looking for deepening and expanding the trade and investment partnership with Nepal and the recently held workshop is a step forward in this direction.

On behalf of NUSACCI along with the president, Birendra Rajkarnicar, Vice President; Prof. Dr. Gandhi Pandit, General Secretary; Sanjai K. Agrawal, Treasurer; and executive board members, Rajani Rana and Sunil Rajbhandhari attended the workshop.

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