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Trends, Structure and Drivers of Nepal’s Agricultural Trade

  • Ramesh SharmaEmail author
Chapter

Abstract

This chapter analyses the trends and structure of agricultural trade in general and with India, in particular, and discusses the drivers of recent trends in agricultural trade. It presents the results of Nepal’s trade competitiveness and export potential based on trade data and recommends a number of measures to respond to trade-related issues. The study depicts a high comparative advantage for most of the exported agricultural items from Nepal with almost perfect complementarity in the agricultural export profiles of both India and Nepal. However, Nepal’s export potential in the Indian market is not very encouraging, and in most cases, the binding constraint to trade potential of Nepal is its limited export capacity and not the lack of opportunities in the Indian market.

Abbreviations

(Agricultural Trade Chapter)

ADS

Agricultural Development Strategy (Nepal)

ATF

Agreement on Trade Facilitation (WTO)

CBS

Central Bureau of Statistics (Nepal)

CIF

Cost Insurance and Freight

CoO

Country of origin

CTH

Change in tariff heading

FoB

Free on Board

GNDI

Gross National Disposable Income

GoI

Government of India

GoN

Government of Nepal

HS

Harmonized System

ICBT

Informal Cross-border Trade

IGC

Intergovernmental Committee (SAFTA)

IGSC

Intergovernmental Subcommittee (SAFTA)

ITP

Indicative Trade Potential

LDC

Least-developed country

MoAD

Ministry of Agricultural Development

MoCS

Ministry of Commerce and Supplies

MRA

Mutual Recognition Agreements

MT

Metric ton

NLSS

Nepal Living Standards Survey

NOM

Non-originating materials

NRB

Nepal Rastra Bank

NTB

Non-tariff barrier

NTIS

Nepal Trade Integration Strategy

NTM

Non-tariff measure

p.a.

Per annum

PTM

Para-tariff measure

RCA

Revealed Comparative Advantage

RoO

Rules of origin

RoW

Rest of the world

SAARC

South Asian Association for Regional Cooperation

SAFTA

South Asian Free Trade Area (SAFTA)

SARSO

South Asian Regional Standards Organization

SL

Sensitive list

SPS

Sanitary and Phytosanitary (WTO)

TBT

Technical Barriers to Trade (WTO)

TCI

Trade Complementarity Index

TEPC

Trade and Export Promotion Centre (Nepal)

TLP

Tariff Liberalization Program (SAFTA)

$

US dollar

References

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Copyright information

© Springer Nature Singapore Pte Ltd. 2019

Authors and Affiliations

  1. 1.Economist, formerly with Food and Agriculture Organization (FAO)KathmanduNepal

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