KATHMANDU, JUL 08 -
Nepal and China have signed a memorandum of understanding (MoU), enabling Nepal to export two types of citrus fruits—orange and sweet orange—to Tibet.
Representatives of the two countries signed the deal at the third Nepal-China Tibet Trade Facilitation Committee (NTTFC) meeting held on July 4-5 in Lasha.
Naindra Prasad Upadhyaya, joint secretary at Ministry of Commerce and Supplies, who led the Nepali delegation at the meeting, said this was the first time after Nepal’s accent to the World Trade Organisation (WTO) that the country received a facility under Sanitary and Phytosanitary (SPF) measures.
Shyam Kishor Sah, director at the Department of Agriculture, signed the MoU on behalf of the Nepal government. “This deal ensures easy access of Nepal’s orange and sweet orange to the Chinese market,” said a participant of the meeting, adding that the Chinese government has also agreed to expand the product list.
In the initial phase, the government targets to export oranges from Syangja and Sindhuli based on the WTO-set norms. Tibet had long been expressing interest to buy Nepali oranges as it has stopped importing the citrus fruits from South Africa. Officials at the Agriculture Ministry said it plans to export 100 tonnes of sweet orange and 1,000 tonnes of orange in the initial phase after issuing a grade separation of quality and quarantine certification.
The joint secretary level meeting has also decided to form a focal point each in both the countries to help boost bilateral trade. “The need for a focal point was felt by both the parties so as to promptly resolve any sort of trade-related problems,” added Upadhya.
According to him, it has been decided that Nepal’s Commerce Ministry and Tibet’s Commerce Department would be made the focal points. “Other information in this regard will be exchanged later through diplomatic channel,” said another participant of the meeting, which is held every year.
Commerce Ministry officials said the meeting also reviewed the implementation of decisions taken by the second meeting. The second NTTFC meeting held in May last year in Kathmandu had agreed to remove procedural hurdles in the enforcement of zero-tariff and activate local-level working groups to eliminate non-customs barriers.
“Both the parties have realised that Nepal has not been able to utilise the facility of duty free access of different Nepali products to China,” said Upadhya. “The Chinese side has promised to take measures to help Nepali exporters utilise the facility.”
Officials said the Chinese side pointed out some flaws in the Certificate of Origin (CO) issued to Nepali exporters. “The ministry will work to rectify such flaws as it was also identified as a hassle for Nepali exporters,” said an official.
Upadhya said the Nepali side also pleaded to waive non-tariff and para-tariff barriers. “The Chinese side is positive to the proposal.”
At the meeting, China also agreed to help Nepal solve quarantine related problems, while both of the parties agreed to introduce letters of credit (LC) as a mode of payment and focus on cross boarder infrastructure development.
Mei Tu Bao, deputy secretary general of Lasha, had led the Chinese side at the meeting.
According to the Trade and Export Promotion Centre, Nepal’s trade deficit with China swelled to Rs 38.2 billion in 2009-10 from Rs 11 billion in 2005-06.
Source: http://www.ekantipur.com/2012/07/08/business/china-agrees-to-import-nepali-citrus-fruits/356799/
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