Free trade pact expected in Kathmandu meet
The Rising Nepal, Kathmandu
Free trade pact expected in Kathmandu meet
By A Staff Reporter
21 December 2005
KATHMANDU, Dec. 21: The tenth meeting of the BIMSTEC Trade Negotiation Committee (TNC) began here in the capital today.
Senior trade officials from all member nations of the BIMSTEC taking part in the meeting are expected to finalise the free trade accord on trade- in-goods, according to officials at the Ministry of Industry of Commerce and Industry (MoICS).
After striking a deal on trade-in-goods, negotiations on service trade and investment would also begin, said senior officials at the inaugural session of the meeting today.
Secretary at the MoICS Bharat Bahadur Thapa while speaking at the programme said that promotion of investment and trade would help accelerate economic growth in the region. He also pointed out the need to strengthen competitive edge to reap more benefits out of free trade accord.
Nagendra Prasad Pandey, joint secretary the MoICS who is leading the Nepalse TNC team also emphasised the need to improve competitive strength.
Chairman of the TNC Thabachai pointed out the need to finalise the matters relating to FTA on goods.
The TNC has so far been negotiating on provisions relating to trade in goods only.
According to the MoICS official, the tenth meeting of TNC, will mainly focus on reducing the negative list items to 20 per cent of the total items traded in the region. It will also discuss issues such as trade facilitation and customs cooperation.
The members would also exchange the list of products, which they are subject to fast track of tariff liberalisation indicating that the remaining commodities will be subjected to the normal track of trade liberalisation,” said the MoICS official. In the FTA on trade-in-goods, the members have agreed to open trade under the ‘fast track’ and ‘normal track’ of trade liberalisation.
It is said that under the fast track of liberalisation, the members are required to cut down tariffs from zero to 5 per cent as agreed upon, while in the normal track, they would follow a gradual tariff liberalisation programme.
Established in 1997 to promote economic and trade relations between the nations in South Asia and South East Asia, the Bay of Bengal Multi-sectoral Technical and Economic Cooperation (BIMSTEC) is a regional forum of Bangladesh, India, Myanmar, Sri Lanka, Thailand, Nepal and Bhutan.
The seven day long TNC meeting is expected to finalise the FTA on services and invesment also. Around 73 officials are taking part in the meeting.
