Kathmandu, Feb. 23: Formal talks on accession of Nepal to the World Trade Organisation will be initiated from May this year, according to the Ministry of Commerce.

All countries in South Asia except Nepal and Bhutan have joined the wto. This apex world trade body includes member countries at various stages of economic development from all the continents.

China has been  effortful to obtain membership since the past 13 years.

According to a report from afp,   president of wto mike Moore, who has just wounded up a 3-day visit to China expressed the hope that that country would  secure full  membership by the end of this year.

Nepal will complete all formalities for membership within 5-6 months, commerce Minister Ram Krishna Tamrakar said adding that we will not face problems like China.

Following the stalemate over trade and transit agreements between Nepal and India, Nepal sought membership of gatt which later transformed into the wto.Nepal has been attending meetings of wto as an observer since its inception.

Nepal has adopted a market-oriented liberal economic policy since 2048 bS.

The Kingdom has opened up  the hotel, insurance, communications and tourism sectors in line with wto provisions for opening at least one  sector for foreign investment.

Nepal has also been adhering to the wto requirement of treating all commodities as domestic ones after clearing custom duties.

The just concluded unctad conference in Bangkok expressed its commitment to providing the poor countries technical aid and cooperation for their economic advancement.

International agencies such as undp, imf, wb, unctad and  International Trading Centre have to extend cooperation for capacity building in the poor nations in keeping with the Geneva accord struck in 1997.

With accession to wto, nepal can be guaranteed transit facilities.

Nepal can get some concessions as a least developed country, and also see some joint ventures coming here. The trade deficit can be narrowed if exportable items are produced on a mass scale, under secretary at the Ministry Jeebraj Koirala said.

Wto membership also paves the way for technology transfer for Nepal through the global market and this will be of help for improving the competitiveness of domestic products, he adds.

Through implementation of the wto agreement, Nepal could gain trading opportunities and become eligible to take part in dispute settlement bodies in defence of its rights and interests.

Wto will facilitate effective participation in multi-dimentional trade negotiations in support of  the trade and financial interests of member countries.

The agricultural sector, the mainstay of the Nepalese economy, will be largely affected as will be items now exported under the quota system.

Indigenous investors may be discouraged since no member country of wto can be descriminated against.

Economist Dr. Govinda Koirala is of the opinion that poverty could become more widespread and economic disparities wider after accession to wto due to competition with foreign products, inability to take decisions unilaterally, pressure of foreign investment and opening up of  the domestic market to foreigners.

Some are opposed to the advent of the wto. They argues that it is a strategy of  the leading industrial countries of the world to seek investment opportunities in developing countries as there is no more scope of expansion in their own countries.

Nobody can remain aloof from the wto which most nations of the world have joined, and about 2 dozen more nations are queuing up for membership.

Nepal is heavily depended upon neighbouring  India because of the open border and also faces widespread poverty. There are equal possibilities of rising  poverty and market prices if the role of the state is minimized, Dr. Koirala says.

Nepal has to ponder this matter in view of the low prospects for the export of Nepalese products.

If infrastructures are developed in accordance with the targets of the Ninth Plan, trade promoted and simplified, exportable products identified and exports boosted, Nepal can benefit tremendously from accession to wto, he said.