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The US and Nepal have signed a framework agreement aimed at enhancing trade and investment between the two countries and promoting more comprehensive bilateral economic pacts.
The accord, which will replace the 1947 bilateral Economic and Trade Agreement, was inked here on Friday by the US Trade Representative, Mr Ron Kirk, and the visiting Nepalese Deputy Premier and Finance Minister, Mr Bharat Mohan Adhikari.
The new 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 US and Nepal.
“We now have an institutional framework for discussing trade and investment issues and learning more about each other’s legal, regulatory and trading regimes,” Mr Kirk said.
“The United States looks forward to deepening its relationship with Nepal and breaking down any and all barriers that may prevent our producers, exporters and ranchers from selling their products in Nepal,” he said in a statement.
In 2010, US exports to Nepal, which gained membership of the World Trade Organisation in 2004, were about $28 million. The top export categories to Nepal were aircraft, machinery and optic and medical instruments.
The US-Nepal Council on Trade and Investment, created pursuant to the TIFA, will address a wide range of trade and investment issues, such as capacity building and technical assistance, intellectual property rights, worker rights, environmental protection and removing barriers to bilateral trade.
The Council is a permanent body which will meet regularly and, when appropriate, involve the private sector and civil society from both countries in discussions.
The US has TIFAs with many key trading partners. In Asia, it has signed TIFAs with countries like Afghanistan, Pakistan and Sri Lanka, while it addresses trade and investment issues with India through the US-India Trade Policy Forum.
Meanwhile, the State Department welcomed the visit of Mr Adhikari here to participate in a multilateral conference on Disaster Risk Reduction in Asia, which has been co-hosted by the two Governments, the United Nations and the World Bank.
“We also welcome the signing on April 15 of the United States-Nepal Trade and Investment Framework Agreement (TIFA),” it said in a statement.
“US officials were pleased to hear from the Deputy Prime Minister of the Government of Nepal’s commitment to completing the final implementation of the peace process and the drafting of a democratic Constitution (in that country), it said.
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