Nepal marks trades successes through ITC support
As Nepal’s economy grows, the country faces a trade challenge. No longer considered among the world’s least developed countries, Nepal stands to lose some of the trade benefits that helped its economy grow.
With Nepal set to graduate from least developed country status in 2026, the country could access a new set of EU trade benefits, known as the Generalized Scheme of Preference Plus (GSP+).
Since February 2020, the International Trade Centre (ITC) has worked with small businesses in Nepal so that they know how to tap into those trade benefits. ITC, through the EU-funded Trade and Investment Programme (TIP), has placed particular attention on businesses that deal with coffee and Pashminas – both top exports to Europe.
As the TIP draws to a close, ITC Director of Country Programmes Ashish Shah visited the country to take stock of its achievements.
‘Over five years, our collaborative efforts through EU-Nepal Trade and Investment Programme, with a shared vision of economic prosperity, have yielded remarkable results across various sectors,’ he said at the closing ceremony in Kathmandu. ‘This success would not have been achieved without unwavering support and guidance from the Government of Nepal, strong support from the private sector, and generous financial assistance and partnership of the European Union.’
The TIP also worked with government officials to develop trade policies and to facilitate trade initiatives.
EU ambassador to Nepal, Véronique Lorenzo, said the TIP had enhanced trade and investment in the country. She reiterated the EU’s commitment to continue supporting Nepal’s graduation its status as a least developed country.
‘Our cooperation wishes to strengthen Nepal in the multilateral trade system,’ Ambassador Lorenzo said. ‘However, we must be aware that the graduation may affect Nepal’s trade, particularly exports to European and other markets.’
The ambassador noted that Nepal still needs to apply for the GSP+ programme, which requires the country to ratify international conventions on human rights, labour rights, environmental protection, climate change, and good governance.
During Shah’s five-day visit, he also met government officials, development partners, and business leaders, including:
• Govind Bahadur Karki, Secretary at the Ministry of Industry, Commerce and Supplies
- Amrit Bahadur Rai, Joint Secretary at the Ministry of Foreign Affairs, and appreciated the ministry’s support for ITC activities in Nepal.
- Jose Luis Vineusa-Santamaria, EU Head of Cooperation in Nepal
- Rob Fenn, UK Ambassador
- Torun Dramdal, Ambassador of Norway
- Jason Seuc, Director of the Economic Growth Office at the US Agency for International Development
- Hanaa Singer-Hamdy, UN Resident Coordinator
ITC stands ready to collaborate with Nepal and its partners as the country’s trade needs evolve. The work of TIP laid a strong foundation, including with the recently launched Business Guides on Exporting from Nepal to the EU, which unpacks European trade rules.
