Advancing Nepal`s Trade Agenda through Effective NTIS 2010

Advancing Nepal’s Trade Agenda
Effective Implementation of NTIS 2010
Chandra Ghimire
Joint Secretary, Ministry of Commerce & Supplies
Presented to
A GoN-Development Partners Consultation Meeting
Kathmandu, Nepal, 07 February 2011
Outline of the Presentation
• Objectives of today's Meeting
• Why Trade is a Must? And What approach serve
the best?
• Current Status of NTIS Implementation
– Briefing on NTIS 2010
– Problems/obstacles for implementation
– Approach and strategies followed by GoN to overcome
problems for successful implementation of NTIS 2010
– National Implementation Arrangement
• What do we expect from our DPs?
• Conclusion
Objectives of Today’s Meeting
• To brief on implementation status of NTIS 2010
• Hearing from DPs- on possible way out for
coordinated efforts in advancing Nepal’s trade
• Obtaining DPs’ commitments for specific NTIS
Why TRADE is a must ?
• "Inclusive Growth" is a pre-requisite for alleviating
• Trade is an engine of "Inclusive Growth",
• Export is a triggering factor for Trade, since:
– Nepal has comparative & competitive advantages in certain
goods & services,
– Nepal's own internal market small but huge markets
available in its two giant neighbors with miracle growth
– Value addition seems in certain goods to be very high
– Market access available through multilateral, regional and
bilateral arrangements
– Being a LDC special privilege i.e. DF (zero-tariff in EC,
Australia, Canada, HK, India, China, Japan, USA etc.)
What Approach the Best Serving?
• By increasing supply side capacity of the
• By promoting the goods & services with high
value addition
• By focusing on 'inclusive growth', i.e.
employment & income, supporting
marginalized areas & groups
NTIS 2010 in effect to serve these approaches
What is NTIS 2010?
• National trade strategy to enhance 'supply side
capacity' for Nepal's space in global market;
• Prioritized strategy launched by PM himself on
24 June 2010
• An outcome of analysis & consultation with:
National stakeholders i.e. Government agencies, business
organizations FNCCI, CNI, CoC, product associations, national
International experts, DPs
But steered by GoN
Salient Features of NTIS 2010
19 goods & services identified as priority items;
Plus 5 other goods/services suggested;
10 most potential destination markets identified;
Engaging of multiple agencies, i.e., GoN's 17
ministries/agencies as well as business organizations;
• An Action Matrix under four strategic objectives
• Product specific actions for priority export sectors
• 3-5 years period for implementation;
Salient Features of NTIS 2010….
• Having 4 strategies:
• Strengthening trade negotiation
• Strengthening NTB related domestic capacity
• Strengthening supply capacity of "inclusive exports”
• Strengthening capacity for managing AfT & TRTAs
• Having 87 cross cutting actions and 171
product/service specific & total 268 actions to be
Problems of Nepal’s Trade Sector
(Obstacles for NTIS Implementation)
• Poor capacity to capitalize the opportunity of WTO
accession and various RTAs/FTAs;
• Poor mainstreaming of trade;
• Steadily growing trade deficit over last FYs;
• Poor implementation of DTIS 2004 and needs of
updating it as per changed contexts;
• Challenge of 'Inclusive Growth‘ as TYP for poverty
alleviation & peace dividend;
• Economic agenda in shadow in the current
Strategies and Approaches to overcome
• Mainstreaming trade into the national development agenda
• Allocated matching fund from the GoN for NTIS 2010
• Intensified dialogues with the stakeholders, including our
development partners
• Deeper inter-agency consultations at all possible levels (GoN
agencies, private sector and DPs) on the NTIS implementation
• Strengthening national capacity both at institutional and HR
• Scrutinizing possibility of an effective aid mobilization
mechanism on trade (Trust Fund, Trade SWAp etc..)
• Increased voice at international level ( Representing board
member in EIF, Geneva)
EIF/NTIS Implementation Arrangement in Nepal
Focal Point
Technical Committees (TCs)
Donor Facilitator
Technical Committees (TC)
1. Agriculture, agro-industry, NTFP, and SPS
2. Private Sector Development (Manufacturing, SMEs, SEZ/EPZ and TBT)
3. Legislation and Intellectual Property Rights (IPRs)
4. Services and taxation
5. Cross-Cutting Issues and Trade-related Infrastructure Development
Technical Sub-Committees (TSC)
To be constituted by TC as required.
Illustration of National Arrangements How it works ?
• NSC: as the APEX BODY for overall guidance & inter agency
• Focal Point: as LEADING the initiatives of MoCS
• 5 Extended NIUs (TWGs): as FORMULATING & IMPLEMENTING projects
• Sectoral ministries/agencies: As IMPLEMENTING PARTNERS
• Business associations: as STAKEHOLDERS involved in the NSC &
various implementation activities
• M&E mechanism:
– Via existing national M&E system
– Objective based M&E indicators yet to develop
Recent Updates on NTIS Implementation
• GoN allocated around US$ 1 million
– Budgetary commitment reflected
– GoN’s budget likely to grow in the yrs ahead
• Concept of having a ‘Trade Trust Fund’ underway – one ‘Task
Force’ formed
• Reoriented sectoral ministries so as to gain complementary
• Government of Germany selected as the New DF
• National implementation mechanism for trade mainstreaming
Recent Updates on NTIS Implementation
• EIF Tier 1 NECTRADE is in place,
– Capacity issue of MoCS and relevant ministries/agencies, including trainings of
officials and private sector
– Coordination for NTIS implementation
– Develop and support implementation mechanism
• Continuous dialogue with the PRIVATE SECTOR to engage them
in implementation process
• Developing project proposals in close cooperation with the line
ministries and private sector for Tier 2 funding (EIF and local
What do we expect from our DPs?
1. What we need?
Effective operationalisation of AfT
Sharing of ideas & experiences
Coordinated delivery of the inputs from DPs
2. Why do we need that supports?
– DCs are committed in global forums to provide
LDCs with AfT & TRTAs
– Nepal per se in its big transformation
What do we expect from our DPs?
3. DPs support to meet resource gap, since:
a) Nepal already mainstreamed trade into its national
development agenda
b) The NTIS is in place and GoN highly committed prioritywise and resource-wise to implement it
c) But resource-wise Nepal alone is unable to afford to
implement it
4. DPs urged to focus on
– cross-cutting activities (institutional, policy)
– Swathe of activities from any value chain, if 'VC' to
pick up
We are Enthusiastic to See Our DPs...
• Becoming a part of our national trade agenda
• Joining aggressively the issue of trade by
'mainstreaming trade' into their country level
development/cooperation strategies
• Immediately picking-up activities from NTIS (as per their
areas of expertise and interest) for implementation
• Helping GoN to make NTIS 2010 a great success.
– Those who already involved: Urged strong & continued support for implementation
– Those who not yet: Urged to include trade in their Nepal Assistance Strategy and
support NTIS implementation
'Baby steps' & 'How a baby grows?'
Who Says Nepal can’t set an example?
Thanks for Your Kind Attention!