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ADB_book_18 April.qxp - Himalayan Document Centre - icimod

ADB_book_18 April.qxp - Himalayan Document Centre - icimod

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goods. Most imports will be within the duty range of10–20%. Nepal agreed to progressively implementthe Agreement on Customs Valuation in accordancewith the action plan, and full implementation willstart from January 1, 2007. Nepal will implement fullythe provisions of the Agreement on Sanitary andPhyto-sanitary Measures by January 1, 2007. Nepalwill prepare an action plan, to be implemented instages after it adopts the Food Act andimplementation of the Codex Alimentarium. It willestablish and operationalize a single enquiry point.Nepal will progressively implement the agreementon Technical Barriers to Trade in accordance with anaction plan and implement those provisions fully byJanuary 1, 2007. Nepal has agreed to incorporate allthe substantive provisions of the Trade-RelatedIntellectual Property Rights Agreement in its newIndustrial Property (Protection) Act to bepromulgated no later than January 1, 2006.Nepal has not become a member of theInternational Union for the Protection of New PlantVarieties. Nepal seeks to adopt an effective suigeneris system for the protection of plant varieties asprovided under Article 27.3 (b). In answeringquestions about the benefits to Nepal from WTOmembership, Shrestha (2004) points out that this willavoid the risks of non-membership, as well asprevent any unilateral decision by a trading partneragainst Nepal. He further points out that Nepal willneed to amend or enact 40 laws, although WTOrequired compatibility only in customs valuation,technical barriers to trade, sanitary and phytosanitarymeasures, and intellectual property rights.This was to be achieved over a period of four years.Regarding questions of import surges affectingdomestic products, he did not believe that this wouldoccur. Regarding subsidy for some of the primaryproducing sectors, some level of subsidy was stillpossible and there were provisions to address theproblems of the primary sector through investmentsin infrastructure, research, and human resourcesdevelopment. At present Nepal’s protection levelsare nowhere near the levels permitted by the WTO,so there is no question about WTO membershipreducing subsidies to farmers.Nepal–India Trade Treaty of 2002India has been and will continue to be Nepal’s mostsignificant trading partner because of Nepal’slandlocked position with India enclosing it on threesides. The new trade treaty is far more restrictivethan the earlier one and is likely to create manyuncertainties for Nepal. The most significantdevelopment has been that India has imposedquantitative restrictions on four items—vegetableghee, acrylic yarn, copper oxide, and zinc oxide—based on rules of origin, quota allocation, and nontariffbarriers (NTCS 2003).Nepal’s Own Trade RestrictionsAs a WTO member Nepal must inform WTO aboutany ban notifications coming into effect.(i) Nepal has banned the following products frombeing exported (FNCCI 2004):(a) Articles of archaeological and religiousimportance;(b) Conserved wildlife and related articles: wildanimals, musk, bile, and any part of wildanimals, snake skin, lizard skin;(c) Drugs, marijuana, opium, hashish;(d) Metals and jewellery: valuable metals andjewelry (exceptions permitted);(e) Articles of industrial importance, explosivematerials, and related materials used in theproduction of arms and ammunition;(f) Industrial raw materials: raw hides and skins(including dry salted), raw wool, allimported raw materials, parts and capitalgoods;(g) Other products: turmeric has been banned;and(h) Export to India: all goods imported fromcountries other than India.(ii) Nepal has banned the following products frombeing imported (FNCCI 2004):(a) Products injurious to health: narcotic drugs;liquor containing more than 60% alcohol;(b) Arms and ammunition and explosives(except under license): materials used inproduction of arms and ammunition, gunsand cartridges, caper without paper, arms,and other explosives;(c) Communications equipment (except underlicense);(d) Valuable metals (except under license);(e) Beef and beef products;(f) Plastic rags and recycled plastic goods;(g) 1<strong>18</strong> azo dyes harmful to the environment;and(h) Any other product designated by theGovernment.Chapter 12: Environment and Trade<strong>18</strong>1

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