The government on Sunday formally requested that an additional 75
Nepali products be considered for the US Generalised System of
Preferences (GSP). If approved, the items with a competitive advantage
will enjoy duty free access to the US market, an emerging marketplace
for local items.
The Ministry of Commerce and Supplies (MoCS) said it has applied for the duty free facility for local products under three categories that include all items that had previously received the facility, seven items that had not received the facility earlier but have potential and around another 70 items that the US has not considered providing duty free access to so far.
Earlier, the US had been providing the GSP facility for approximately 5,000 items from 127 developing countries. However, Nepali products only make up 5 percent of the list, including Nepali flags, Nepali caps, cigars and scarves, among others, of the total items exported to the US.
“Under the first category, we have asked to continue the facility for all the Nepali items that had been benefiting from the facility earlier,” Abha Shrestha, under secretary at the MoCS, said. She said under the second category, handicrafts, metal items, wooden fabrics, paper, yarn, wool, carpet and other textile fibers have made the list.
The ministry has made a special request to offer the facility for another 70 Nepali products, so as to increase the coverage of Nepal’s exports, although the ministry admits it will be hard to get further preferences from the US for the facility. Garment and pashmina related items dominate the third category. When the US ended the quota system for garments in 2005, Nepal’s request for duty and quota free access to the US market was rejected.
Previously, trade experts and stakeholders had been claiming that the GSP would not benefit the country much unless products like textiles and garments, that have a more comparative and competitive advantage, are included in the list.
Under the GSP system, designed to promote economic growth in the least developed countries, Nepali products received duty-free access to the US market. The programme, which was launched in 1979, expired on July 31, 2013. Following its expiry, the US government asked beneficiary countries to apply for duty-free treatment by Oct 4 this year.
The ministry had prepared a list of the items to be recommended for the facility, undertaking long and rigorous preparations. It also had held dialogues with stakeholders from the private sector and line ministries before finalising the items.
Jib Raj Koirala, joint secretary at the MoCS said although the ministry has requested the US government for facility on the basis of consultations held with stakeholders, there was still some time to make the petition for the same facility.
“If the private sector considers there are still some other items which are eligible for the facility, it can approach the ministry or apply online,” he said, adding that the items were selected on the basis of their competitive advantage and value addition, ensuring a maximal benefit for the country and local traders.
The ministry had applied for the facility to the United States Trade Representative (USTR) online. The MoCS officials said it would take one year for the US government to finalise which among the submitted products would be offered the facility.
As per the Trade and Export Promotion Centre (TEPC), the country exported goods worth Rs 5.75 billion during the fiscal year 2011-12.
Source: The Kathmandu Post
The Ministry of Commerce and Supplies (MoCS) said it has applied for the duty free facility for local products under three categories that include all items that had previously received the facility, seven items that had not received the facility earlier but have potential and around another 70 items that the US has not considered providing duty free access to so far.
Earlier, the US had been providing the GSP facility for approximately 5,000 items from 127 developing countries. However, Nepali products only make up 5 percent of the list, including Nepali flags, Nepali caps, cigars and scarves, among others, of the total items exported to the US.
“Under the first category, we have asked to continue the facility for all the Nepali items that had been benefiting from the facility earlier,” Abha Shrestha, under secretary at the MoCS, said. She said under the second category, handicrafts, metal items, wooden fabrics, paper, yarn, wool, carpet and other textile fibers have made the list.
The ministry has made a special request to offer the facility for another 70 Nepali products, so as to increase the coverage of Nepal’s exports, although the ministry admits it will be hard to get further preferences from the US for the facility. Garment and pashmina related items dominate the third category. When the US ended the quota system for garments in 2005, Nepal’s request for duty and quota free access to the US market was rejected.
Previously, trade experts and stakeholders had been claiming that the GSP would not benefit the country much unless products like textiles and garments, that have a more comparative and competitive advantage, are included in the list.
Under the GSP system, designed to promote economic growth in the least developed countries, Nepali products received duty-free access to the US market. The programme, which was launched in 1979, expired on July 31, 2013. Following its expiry, the US government asked beneficiary countries to apply for duty-free treatment by Oct 4 this year.
The ministry had prepared a list of the items to be recommended for the facility, undertaking long and rigorous preparations. It also had held dialogues with stakeholders from the private sector and line ministries before finalising the items.
Jib Raj Koirala, joint secretary at the MoCS said although the ministry has requested the US government for facility on the basis of consultations held with stakeholders, there was still some time to make the petition for the same facility.
“If the private sector considers there are still some other items which are eligible for the facility, it can approach the ministry or apply online,” he said, adding that the items were selected on the basis of their competitive advantage and value addition, ensuring a maximal benefit for the country and local traders.
The ministry had applied for the facility to the United States Trade Representative (USTR) online. The MoCS officials said it would take one year for the US government to finalise which among the submitted products would be offered the facility.
As per the Trade and Export Promotion Centre (TEPC), the country exported goods worth Rs 5.75 billion during the fiscal year 2011-12.
Source: The Kathmandu Post
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