National 9 (Spotlight Weekly)

Diversifying Trade

Nepal Britain Chamber of Commerce and Industry helps to promote diversification of trade

By A CORRESSPONDENT

At a time when Nepal's foreign trade volume continues to shrink and a large number garment, carpet and handicraft industries are on the verge of closure, the Nepal-Britain Chamber of Commerce and Industry (NBCCI) held its annual convention by reaffirming its commitment to tap the market in the United Kingdom.

Although the bilateral trade volume between Nepal and Britain is still negligible, there is an immense possibility for growth. In the last few years, business groups from both countries have taken a few steps to explore the market. Some Nepalese distilleries import materials from the United Kingdom. Nepal's carpet industry, which imports sheep wool from Australia and New Zealand, has identified the United Kingdom as a potential market.

Khetan (center) at NBCCI AGM : Promoting trade

In the last few years, Nepalese carpet producers have visited the United Kingdom to explore the market there. Germany is one of the largest markets for Nepalese carpets, in the same way the United States is for garments. "We have been exploring ways to promote bilateral trade. The government should give adequate attention to labor reform, revenue and local administration and politics to realize the goal of national prosperity," said Rajendra Kumar Khetan, renowned industrialist who has been re-elected as NBCCI president.

Political instability in the country has badly hurt industrial production and other sectors. Battered by the September 11, 2001 terrorists attacks, Nepal's international trade is yet to see any possibility of recovery. The upsurge of Maoist violence has turned the situation from bad to worse. The tourism industry is facing a major crisis and other industrial sectors have a similar experience.

"There is a serious need to solve the political crises as they are severely hurting the country's economy," said Khetan, after his re-election for another three-year term.

Political leaders shared his views. "We are well aware about the situation and our party has already affirmed its support for any move taken by the business community to improve the situation," said K.P. Sharma Oli, politburo member and deputy leader of the CPN-UML.

United Kingdom is the oldest friend of Nepal and it has been supporting the kingdom in various areas for more than a century. Whether in the area of development aid or human resources development, the support and cooperation of United Kingdom has been immense. In recent times, the United Kingdom has been supporting Nepal in quelling the Maoist insurgency, while continuing its development objectives.

The United Kingdom has come to the rescue of Nepal whenever the kingdom has faced trouble. In the trade and business sector also, the initiative taken by the British government has been remarkable. "We will continue to support the private sector to expand the trade volume between two countries," said Keith George Bloomfield, British Ambassador to Nepal, addressing the meeting.

Expansion of Nepal's trade with the United Kingdom will depend on the competitiveness and quality of Nepalese products. Nepalese industries need to improve the quality of their products to compete with other countries of the region. While other countries in the neighborhood have been making consistent efforts to grasp the market, Nepalese industries are yet to take the necessary steps.

During his first tenure as NBCCI president, Khetan made considerable efforts to explore the market and identify products. The challenge for his new term will be to translate the commitments into action by improving the trade volume between the two countries.