Experts have underscored the need to enhance competitiveness in exportable products in order to cash in on the recently revised Nepal-India trade treaty.

While speaking at a discussion forum "Revised Nepal-India trade treaty: features and Implications" held in the capital Thursday, they also said that Nepal should focus on re-engineering its existing trade modus operandi to reap maximum possible benefits from the concept of liberal economy.

Purushottam Ojha, secretary, Ministry of Commerce and supplies, said that the concentrated efforts ought to be made to foster the supply side of the country to mitigate the rapidly widening trade deficit with India.

"Currently, around 2/3 rd of Nepal's total trade is with India. And, the trade deficit of Nepal with India is increasing very fast," he informed adding," The deficit almost doubled in last three years from Rs 66.4 billion in 2005/06 to Rs 125.3 billion in 2008/09.

He also said that Nepalese trade is faced with the constraints on supply side and collaboration with India in improving the quality infrastructure and simplification and harmonization of trade procedures will help in promoting the country's export.

He further argued," There is explicit commitment in the new trade treaty to facilitate trade by undertaking measures to reduce or eliminate non-tariff, para-tariff and others barriers of trade. "The implementation of this provision will facilitate the market access," he opined

Ojha, however, cautioned that the improvement and sustenance in export trade can take place with the development of potential products, its quality and quantity and the competitive price to offer.

Speaking on the same occasion, Arun Chaudhary, president, Nepal India Chamber of Commerce and Industry (NICCI), underlined the need to promote the products in which the country enjoys inherent capacity to exploit the trade relations between Nepal and India to the hilt.

"Trade treaty, per se, will not help Nepal to bolster its export business. As such, we should be also highly attentive towards leveraging the notion of economic diplomacy to reap benefits from the treaty," he opined.

He also expressed deep concern over continuous downward spiral in the export volume of indigenous products like handicrafts, carpet and pashmina, among others, to both India and other third countries.

Dr Bishwambher Pyakural, economic expert, ascribed the widening trade deficit of Nepal with India to import-centric mindset of Nepali authority. He also termed the lack of knowledge on the structure of labour market of various states of the southern neighbour as a prime factor stifling Nepal's trade with India.

Stating that Nepal should take initiation to prepare competitive index of its exportable items, Dr Pyakural said," We possess high competitive edge in certain items like pharmaceutical products. So. The preparation of product specific competitive index can go a long way in enhancing Nepal's
export to India."

Ratnakar Adhikari, General Secretary, SAWTEE, attributed infrastructural bottlenecks, lack of productive capacity and political instability to the widening trade deficit of Nepal with India. nepalnews.com

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