December 28: Experts have suggested diversification of products and market to boost Nepal’s exports. Such a revelation was made on the basis of the findings of two separate studies presented during a seminar on “Trade policy and economic diplomacy in Federal Nepal” organized by the South Asia Watch on Trade, Economics and Environment (SAWTEE), in collaboration with The Asia foundation (TAF) on Thursday.

Presenting the findings of a study, Former Secretary at the Ministry of Industry, Commerce and Supplies (MoICS), and SAWTEE researcher Neelu Thapa recommended identification and development of products along with the need for product and market diversification to boost Nepal’s exports.

The study highlighted the need of technical support and capacity building programs and recommended strong coordination within the three tiers of governments for effective implementation of trade policies

Speaking at the inaugural session of the seminar, MoICS Secretary Toyam Raya said that Nepal’s future trade policies must be formulated through proper and adequate consultations among all the three tiers of the government as well as the private sector. Diplomatic missions play a vital role in promoting exports, he added.

Similarly, Bharat Raj Paudyal, secretary at the Ministry of Foreign Affairs (MoFA), said that federalism can be leveraged to address the major issues that plague Nepal’s exports including weak intergovernmental coordination, supply-side constraints, poor adoption of technology, weak production capacity, lack of trade policy coherence, and finally poor implementation of policies.

According to a statement issued by SAWTEE, he also pointed out that economic diplomacy cannot function in isolation, hence collaboration and coordination between various stakeholders are essential.

Dr Posh Raj Pandey, chairman of SAWTEE, pointed out that while Nepal has accorded the highest priority to export promotion, the export performance in the past decade has been dismal, primarily because of poor supply capacity.

SAWTEE’s Executive Director Dr Paras Kharel said that Nepal stands on the verge of graduating from the LDC category (in 2026) and therefore trade and economic diplomacy carry special importance in charting the post-graduation landscape.

The panelists, including former policymakers, emphasized on the need to make trade policy more focused.

The private sector representatives including Neeru Rayamajhi Khatri, president of the Federation of Women Entrepreneurs Association of Nepal (FWEAN), Shanta Baskota Koirala, director of Kanchanjangha Tea Estate and Research Centre (KTERC) and   Rajendra Timilsina, an entrepreneur associated with Himalayan Natural Food Product and Export Pvt Ltd, drew the attention towards the need to integrate trade policy to promote entrepreneurship. They suggested increasing access to technology, infrastructure, knowledge, and capacity building activities of the entrepreneurs.

Urging the policymakers to take advantage of the federal structure, Former President of Nepal Freight Forwarders Association Rajan Sharma emphasized on the need to allow sub-national governments to play a role in enhancing the supply-chain.

Another study recommended strong partnership between government agencies for the utilization of economic diplomacy and the need to establish and strengthen the institutional arrangement for economic diplomacy.

Former Ambassador Dr Dinesh Bhattarai and SAWTEE’s Research Officer Swastik Aryal presented the findings of the study on economic diplomacy for trade facilitation and export promotion in the context of federal Nepal.

Prof Shambhu Ram Simkhada, a former ambassador, emphasized that focus should be laid on high-value niche products instead of mass production of low-value products for export.

Former President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Suraj Vaidya gave an insight into the challenges faced by the private sector in trade such as lengthy bureaucratic processes.

Trade and economic diplomacy expert Rabi Shankar Sainju highlighted the importance of infrastructural development, better linkages between buyers and suppliers, and effective diplomacy to remove protectionist measures applied by other countries.

The event saw the participation of current and former policymakers, trade experts, diplomats, researchers, academicians and journalists, among others, added the statement.