Book Review (Spotlight Weekly)

On Trade Facilitation

The book highlights the importance of trade facilitations

By A CORRESPONDENT

As Nepal has already secured the membership of World Trade Organization (WTO), it has opened new opportunities and possibilities for international trade and businesses in view of new rules, regulations and regimes.

"The biggest change in the conduct of international relations has been the near universal recognition of economics lying at the center of relationship between countries. Political relations provide the foundation and economics the frame for the sustenance of a large and complex structure of diplomacy of the 21st century," writes editor Pandey in the preface of the book titled "Trade Facilitation: Nepal's Priorities" and published by the Institute of Foreign Affairs.

"In today's globalized world of increasing global interlinkages of the markets in goods, services, capital and finance, economics is not only at the center-stage of diplomacy but issues such as foreign trade, external investments, financial flows, aid, bilateral and multilateral economic negotiations and technology exchanges influence the overall relations between nations."

Based on paper presented and discussions held at the seminar organized by the Institute of Foreign Affairs (IFA) with the collaboration of the South Asia Watch on Trade, Economics and Environment (SAWTEE), the book consists of articles written by Nepal's prominent economists and other scholars.

In the last one year, Nepal has seen many changes in the trade sector as Nepal has joined the South Asian Free Trade Area and signed BIMST-EC - an FTA. With joining these organizations, Nepal has also secured new opportunities.

Presenting paper on "Trade Facilitation: Nepal's Priorities" professor Dr. Bishwambher Pyakuryal writes the importance of trade priorities in the region. "Removal of procedural impediments in international trade by ensuring a continued flow of information to the exporters and importers is a necessary pre-condition in any Trade Facilitations (TF) schemes," states professor Dr. Pyakuryal. "The government-mandated trade procedures have escalated the costs of tariffs in the LDCs. Unresolved issues in TF, a brief statement of development perspectives of TF, its costs and benefits, various other issues of Nepal's TF and its priorities and impediments are other features discussed in this paper."

In another paper titled "Reforms Needed Under the Customs Administration", Krishna Hari Baskota, director general of Customs Department, writes about the existing system on customs administrations and its limitations. Baskota, among others, highlights the efforts taken to improve the situation.

Former Royal Nepalese Ambassador to European Union Dr. Durgesh Man Singh in his article "Role of Missions in Economic Cooperation" states, " The basic objectives of Nepal's foreign policy was to see that foreign influence both political as well as economic modernization, was sought to be kept at bay, or at best the minimum. Wherever they were placed, essentially at the very rudimentary and limited scale, were understood to pursue this very limited task."

Participated by various experts on trade liberalization and facilitations, the book is first of its kind, which explains Nepal's position and state of trade with special emphasis on the need of the country to utilize its diplomatic organs for better trade deal. The experts also suggest the way to increase the bilateral trade.

"Trade facilitation is very important in the present competitive environment. The twin process of globalization and liberalization has made it necessary for countries around the globe to adopt measures by which trade could be facilitated in order to bring down all associated costs, which then could go a long way in enhancing the competitiveness of any product at the international product," said Prachanda Man Shrestha, joint secretary at the Ministry of Industry, Commerce and Supplies.

As the dry port is in operation in Birgunj, the commentators also argue the need to enhance the infrastructure for smooth trade facilities.