Economy News The Rising Nepal (Daily)

'Preparations on WTO entry in final stages'

By A Staff Reporter

KATHMANDU, Aug 26: Before heading for the second round of negotiations to join the World Trade Organisation (WTO), Nepal must first complete its exercise on issues related to intellectual property rights and trade, said WTO experts Sunday. The negotiations begin in Geneva on September 9.
Nepal has so far not made its position clear on intellectual property rights (IPRS) and TRIPS. It needs to formulate more than 30-35 rules and regulations to address trade related issues.

The Ministry of Industry Commerce and Supplies, however, claims that all preparations to integrate the Nepalese trade regime with that of the WTO are in the final stages. The task related to tariff binding to protect the domestic industries has been completed.

"The second round of negotiations will be crucial from the point of fulfilling the other WTO requirements," says Prachand Man Sherestha, joint secretary at the ministry. "If Nepal fails to hammer out solutions during the upcoming meet, the process of obtaining WTO membership will be further delayed," he told The Rising Nepal.

Nepal answered 362 plus queries of the Geneva-based WTO in April 1999, however it still wants Nepal to clarify its position on various issues including the TRIPS and IPRS.

Speaking at a workshop Sunday, Shrestha said, "Joining the WTO is not our sole goal. We should try to protect the interests of the Nepalese stakeholders."

He also noted that the government has upgraded and amended the existing legal framework to tune it with world trade practices. "But we need technical assistance and a transitional period to enhance our capacity. We are asking for support from our development partners."

Shrestha further said that a "common voice of the region" will help support Nepal to obtain more leeway.

Said Prakash Bahadur Gurung, Assistant Minister for Industry Commerce and Supplies, given the present global trade scenario, protection of intellectual rights is important. Hence, the government has brought out the Copyright Act to address the problem.

He said such a provision was necessary to protect Nepal's handicraft in the world market. "We will clarify our positions on TRIPS and IPRS in the upcoming meeting in Geneva," he said.

Second vice president of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) Rajendra Khetan said that the government should join hands with the private sector to prepare a framework on TRIPS and IPRS. "Though it is a crucial issue in the WTO, the government has not given due attention towards such critical issues," he added.

WTO expert Bijendra Man Shakya, presenting a working paper on "International Trade and WTO System: A Nepalese Perspective" stressed the need to develop competitive strength in those areas in which Nepal can reap more benefit.

A least developed country like Nepal may not be able to take instant benefit by entering into the WTO club, but it is essential in order to go along with international trade practices. "And we should develop out competetitive edge as well," he added.

Shakya also stressed the need to focus on areas in which Nepalese stakeholders could take more benefit." WTO is a body that prompts free and fair trade and helps enhance economic growth in the LDCs," he said.

Tribhuwan Dev Bhatta, a consultant on corporate and trade law, while presenting his paper stressed the need to formulate necessary acts and regulations on TRIPS and IPRS.

Hiramani Ghimire, under secretary at the Ministry of Industry, Commerce and Supplies, said that the TRIPS Agreement had been a major challenge for the developing countries and LDCs. The TRIPS agreement is under review, which is mandated in the agreement itself, he added.

Kalyan Krishna Tamrakar, president of the Handicraft Association Nepal (HAN), stressed the need to formulate necessary legislations to preserve Nepal's handicraft in the world market.

Nepal had applied for General Agreement on Tariffs and Trade (GATT) membership in 1989. It submitted the Memorandum on Foreign Trade Regime in July 1998.

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