KATHMANDU: The United States President Barack Obama on Thursday signed a proclamation to implement the Trade Facilitation and Trade Enforcement Act (TFTEA) of 2015, which would create a trade preference programme for Nepal.

"The TFTEA officially provides duty-free treatment for dozens of types of imports from Nepal that meet specific eligibility criteria, including certain types of carpets, headgear, shawls, scarves, and travel goods," the US Embassy in Kathmandu said in a press statement today.

"The programme grants duty-free tariff benefits for certain Nepali exports not currently eligible for duty-free access to the United States’ market," the statement informed, "It also authorises a trade capacity building programme, focused on helping Nepal implement the World Trade Organisation’s Trade Facilitation Agreement."

The programme, designed to help Nepal’s economic recovery from the earthquakes that struck the country in 2015, is authorised for 10 years.

“The legislation provides a unique opportunity for Nepali businesses to expand their exports to US markets,”   US Ambassador Alaina B Teplitz said in the statement.

“These trade preferences will provide some support, but ultimately Nepal’s broader economic development will be achieved through policy reform that incentivises investment, an improved business environment and labour reform that supports all sectors,” she reminded.