Kathmandu, January 22:

Experts at a programme today urged for the identification of gaps in the trade competitiveness of the country inorder to sharpen its edge.

During a workshop on ‘Making of Nepal’s Trade Integration Strategy (NTIS) and Implementation of EIF’, Purusottam Ojha, Secretary at the Ministry of Commerce and Supply (MoCS) insisted on commitment to the formation of NTIS with the changes in the trade sector.

According to Ojha, NTIS 2003 should be given a new and updated framework with ample improvement in it. “We should now increase our supply side and competitiveness in the international arena,” said Ojha.

“Talking about trading groups is not enough, we need to be open toward service trade and think of taking benefits from it,” he said.

Nepal has bilateral trade agreements and membership in regional groups and World Trade Organisation (WTO) but its trade performance has been dismal in the recent past, said Dr Posh Raj Pandey, former member of National Planning Commission (NPC) — the government think-tank.

“Market access is a critical factor but it must be complemented by domestic policy

reforms, better institutions and trade capacity building,” Pandey said.

According to Pandey, the Nepal Competitiveness Study was made in 2003 by the

Word Bank (WB) on behalf of Integrate Framework (IF) working group at the request of the government.

The study identified various critical constraints. There are delays in customs and trans-shipment to India’s Kolkata port, high infrastructure costs, rigid formal labour market, weak policy and institutions in the areas of taxation and investment and trade promotion.

“Nepal’s trade sector is at an alarming stage in the international arena, we are having trade deficit. One of the causes for increase in trade deficit is the increased revenue,” said Dr Badri Pokhrel, joint secretary at MoCS.

“Work is on to identify different possibilities to end the trade deficit, Pokhrel said and added that the EU/WTO Project and ENTReC project would multiply trade in Nepal.

Pandey also offered suggestions for enhancing supply capabilities through the development of infrastructure, adaptation to new technology, entrepreneurship creation and skill development.

MoCS and Enhancing Nepal’s Trade-related Capacity (ENTReC) UNDP organised the workshop programme.