Nepal to raise voice in favour of LDCs during Hong Kong ministerial meeting

December 9, 2005
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Experts have said that Nepal should raise its voice strongly in the ministerial meeting of the global trade regime World Trade Organisation (WTO) to be held in Hong Kong from 13 to 19 December in favor of Least Developed countries (LDCs).

Officials at the Ministry for Industry, Commerce and Supply said that Nepal will raise its concerns in the meeting through the common position of the LDCs.

They said that Zambia, on behalf of 32 LDC members, would put forth the issues raised in the Livingston Declaration in the ministerial meeting.

Other members of the LDCs will provide inputs to Zambia, if needed, in order to bolster the position of LDCs in the multi-lateral negotiations.

The LDCs will emphasise on the drastic reduction in the agriculture and export subsidies provided by the developed nations. They will also raise issues such as aid for trade, food aid and development dimensions as mentioned in the Doha Declaration.

32 LDCs met on Zambia on June to decide common agendas to influence the decision of global trading regime in their favour.

This is the first time Nepal is participating in the ministerial meeting of the WTO after its accession on 2003.

“Since the Nepalese delegates are participating in the conference as a full member for the first time, we are still in the learning process as to how a country like Nepal would benefit from the multi-lateral negotiations,” said Bharat Bahadur Thapa, secretary at the Ministry of Industry, Commerce and Supplies.

Talking to Nepalnews, General Secretary of Garment Association of Nepal, Uday Raj Pandey, informed that they had submitted a concept letter to the Ministry for Industry, Commerce and Supply containing issues to be raised during the ministerial meeting for the promotion of export of Nepalese goods.

He informed that they asked the government to raise three issues during the ministerial conference which are to make duty free access of goods of LDCs’ binding, to remove garment and textile sector from Non Agriculture Market Access (NAMA) agreement and form a separate committee for garment and textile sector.

“The Doha declaration had promised to provide duty free access of goods of LDCs’ to developed countries but developed countries are providing it only as per their wish, so all least developed countries including Nepal should raise their voice strongly in this regard,” he added.

The ministerial meeting is expected to finalize the Non Agriculture Market Access (NAMA) agreement, which will reduce tariff rates and create preferential market erosion, therefore Nepal should raise its voice to remove garment and textile sector from the NAMA agreement and also pressurize to form a committee to look after the issues of this sector, Pandey added.

Earlier the WTO had placed garment sector in a separate agreement and LDCs’ were receiving quota free access to developed countries but following the termination of the agreement from January 2005, the Nepalese garment sector is facing huge losses.

The garment exports has been dwindling with the termination of multi-fiber arrangement (MFA) from January 1 this year, which put the quota system of exports to US out of circulation.

Pandey further said that Nepal should raise issues of LDCs during the address of the Chief of the Nepalese delegation and during the meetings of the technical committees.

One of the members of the Nepalese delegation to the ministerial meeting and vice-president of Confederation of Nepalese Industries, Rajendra Khetan, told Nepalnews that Nepal is collectively raising the voices with LDCs to influence the decisions of the ministerial meeting for the welfare of LDCs.

The main issues to be raised by the LDCs will be NAMA agreement, Technical Assistance to LDCs and trade facilitation measures.

Stating that the preparation for the meeting is very good, Khetan added that Nepal should raise all the issues in the frame of LDCs to influence the decision.

“As a first meeting as a member, Nepal will have an opportunity to know how to sustain in the global trading regime as a LDC member and how to work together for the benefit of the country,” he added.