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17 April 2011 ~ Comments Off

Nepal, US clinch landmark trade, investment pact

Anil Giri – AHN News Correspondent

Kathmandu, Nepal (AHN) – Nepal and the United States clinched their first bilateral trade agreement Friday, opening the doors for preferential entry of Nepali goods.

The Trade and Investment Framework Agreement (TIFA) will provide a forum for bilateral talks to enhance trade and investment, discuss specific trade issues, and promote more comprehensive trade agreements between the two countries.

The pact replaces 1947′s bilateral Economic and Trade Agreement between the two countries.

Deputy Prime Minister Bharat Mohan Adhikari and U.S. trade representative Ron Kirk signed the deal on behalf of their respective governments.

The deal opens the door to form permanent bodies to discuss bilateral issues and promote trade and investment between the two countries. Nepal’s main exports to the U.S. are Readymade Garments (RMG) and pashmina, a fine cashmere wool.

In 2010, U.S. exports to Nepal were about $28 million, with aircraft, machinery, and optic and medical instruments the leading categories.

The Nepali delegation also sought U.S. investment in energy and service sectors such as health, education, tourism, banking and finance.

Article © AHN – All Rights Reserved

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