KATHMANDU: South Asia — home to almost a quarter of the world’s population — has negligible intra-regional trade due to non-tariff barriers, said speakers at the inauguration of South Asia China Trade Fair 2010 here today.

“South Asia has the potential to be an economic power by 2025,” said Surendra Bir Malakar, president of Nepal Chambers of Commerce (NCC).

South Asia accounts for only 2.5 per cent of the global GDP and two per cent of the world’s export,” he said adding that the region has attracted only 1.6 per cent of total foreign direct investment.

South Asia is still facing extreme poverty as over

40 per cent of its population is living on less

than $1.25-a-day. “The only way to uplift the region’s poor is to expand regional trade,” Malakar said. “Even after three decades of consolidated efforts, the region is still less integrated in trade.”

Nepal — situated between economic power houses India and China — could benefit, if it is successful in linking the northern neighbour China with the rest of South Asia.

“The fair can be a good opportunity for Nepal to prove it can function

as a an inland trade corridor for trade amongst South Asian countries

and China,” said China’s ambassador to Nepal

Qiu Guohong at the inaugural ceremony.

The fair, which is on

till April 10, has been

organised with the

motive of providing

trade and business opportunities to enhance strong relations among South Asian countries.

Local authorised companies representing China, India, Pakistan, Myanmar and Bangladesh are participating with products ranging from automobiles, electrical goods, power generators and household goods as well as office equipment.

“Once the peace process is settled, more countries would be willing to invest in Nepal and help develop its economy to greater heights,” he added.

A Chinese delegation covering 30 stalls is participating with varied

interests in hydropower, machinery, seeds,

construction, chemicals and textiles.

The Chinese business delegation is aiming for joint investments and appointing local dealers for their business while also interacting with representatives from other South Asian countries.

“We will soon be having an independent trade fair next month in Nepal as it has a very strong trade potential. It is essential to have trade fairs such as these to explore and reflect the trade potential of the country,” said Pakistan’s ambassador to Nepal Syed Abrar. The independent trade fair by Pakistan is also going to be held on May 12-16.

The organisers of the South Asia China Trade Fair are targeting to bring in around 60,000 visitors over the four-day period. There are 120 stalls exhibiting diversified products of which about 80 are from Nepal itself and the rest from other South Asian countries.

The fair organised by China Executive Council and managed by Direction Nepal was inaugurated by vice-president Parmananda Jha at Bhrikuti Mandap Exhibition Hall.