HEADLINE NEWS THE RISING NEPAL (DAILY)

Entry into WTO to help Nepal: Minister

BY A STAFF REPORTER

Lalitpur, Nov. 21: Commerce Minister Ram Krishna Tamrakar today said that Nepal's accession to the World Trade Organisation (WTO) would benefit the nation in terms of industrial development, employment generation, resource mobilisation and economic growth.

"Nepal's entry into the WTO will not put the country at a disadvantage," Tamrakar told the inaugural ceremony of a two-day seminar on WTO, Globalisation and Nepal here this morning. "It will instead open new avenues for national development."

"The challenge before us, however, is to overcome the widely held fear that the nation will be at a disadvantage with its accession to the WTO," he said. "Besides, we should focus our attention on how we can attain international competitive edge in products that we export."

Readymade garments and carpets are Nepal's major exportable items in which Nepal presently enjoys quota facility. Experts show reservations that these items can compete in the international market once Nepal enters the competitive world trade regime, planned for early 2001.

"Keeping this in view, we asked for concessions for a few years during the first rounds of our negotiations with the representatives of other countries in Geneva a few months ago," Minister Tamrakar said. "And the response was positive."

Tamrakar confirmed that the government would give due consideration to any constructive suggestions put forward by the private sector as well as academic organisations to attain a competitive edge on the exportable items.

US Embassy's Deputy Chief of Mission Larry Dinger said that Nepal's accession to the WTO, adherence to sound national economic policies, and speedy decision-making would ensure greater access to the continually growing global economy and lead to better economic opportunities.

"Among the most significant benefits of WTO membership is the Dispute Settlement Body (DSB)," Dinger said. "For Nepal, the DSB is a potentially invaluable tool which can place you in a mush stronger position when negotiating trade disputes with much larger economies."

"For a landlocked country like Nepal, one distinct advantage of joining the WTO is that it entitles the member state with the right to transit facilities," NEFAS (Nepal Foundation for Advanced Studies) Executive Director Ananda Shrestha said welcoming the participants. "A perennial access to transit facilities will be no small achievement for Nepal in the light of its desire to open itself to the outside world."

But this in itself is not enough, unless Nepal raises its efficiency and international competitive edge in both product specialisation and diversification, he added.

President of the Federation of Nepalese Chambers of Commerce of Industry Pradeep Kumar Shrestha said that the country's accession to WTO would mean little unless the private sector knew the trade rules and strengthened itself to capitalise the opportunities.

He stressed on partnership between the government, academic experts and the business community to enhance efficiency to keep pace with the speedy global trade environment.

"We need a special policy to gain a competitive edge on the exportable items and to diversify our export trade," President of Nepal-USA Chamber of Commerce of Industry (NUSACCI) Narendra Kumar Basnyat said.

Organised jointly by NEFAS, and NUSACCI with co-operation of the American Embassy, the seminar will centre on the themes of WTO, Globalisation and Social Security, Foreign Policy Implications of WTO Membership, WTO and the Least Developed Countries, Effects of WTO Membership on Governance and WTO's Dispute Settlement.

The two-day seminar aims to carry out a follow-up to previous debates on the WTO and Globalisation initiated by NEFAS and to initiate discussion on the subject so as to provide input to policy making before Nepal enters the WTO.

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