Future Implications for NepalIncreasing trade under stringentenvironmental conditionsThere is little doubt about the increasing value oftrade, both internally and externally, but trade cannotbe a panacea for all problems of underdevelopmentand how trade impacts different development goalsneeds to be studied continuously over time. Onlythen can appropriate policies be targeted to dealwith specific problems. The Nepalese economy hasbenefited immensely from growing internaleconomic integration permitting specialization andtrade between regions. It has also benefited fromincreasing external trade, which has made rapidstrides in recent times. However, Nepal’s trade islopsided from the point of view of limited exports,few markets, and a rapidly widening trade gap. Inaddition, due to increasingly stringent environmentalstandards by developed countries, Nepal’s exportsface serious market access problems. There is alsotough competition in some of the exports from otherSouth Asian countries that have many advantagesover Nepal.Improving quality of tradeWhile international trade is important and for manycommodities domestic markets may not providecomparable scales of demand, the poor quality ofdomestic trade is often reflected in internationaltrade as well. Not much importance has been givento the quality of domestic trade. In fact many of thesanitary and phyto-sanitary conditions can be evenmore appalling in domestic markets. Increasinginternal and international trade means greaterquality control at home also.Better understanding and awareness ofWTO requirementsNepal is a member of WTO and there is little point indebating this issue; now better understanding aboutwhat is expected from the traders in Nepal is needed.There are many ongoing discussion areas about this,some of them contentious. Nepal must do itshomework and prepare for each discussion well inadvance to negotiate in the country’s best interests.Improving technical standards andquality assurancesShrestha and Shakya (2002) and Sharma and Karkee(2004) both emphasize this point. The technicalrequirements for quality assurance have nowreached a level where many exporters not only lackthe skills, expertise, and the infrastructure to meetthem but do not really know what is required andwho to turn to for help. Cost considerations areanother set of critical issues. Experience inBangladesh and India, particularly in the fishingindustry, has revealed that compliance with qualitystandards not only requires substantial capitalinvestment but can also entail very high annualoperating expenses (Chaturvedi and Nagpal 2003).The Nepal Bureau of Standards and Metrology isthe national body for the development of Nepalesestandards, adoption of international standards,providing quality assurance, certification, inspection,testing, accreditation, and harmonization procedureswith the standards in Nepal’s exporting regions.Nepal has some 600 standards, but only five relatedto safety and public health in export trade aremandatory—the remainder are voluntary (Shresthaand Shakya 2002). Standards acceptability abroadand their enforcement domestically will be a majorchallenge for export efforts in Nepal as all the majorexporting countries are imposing increasinglystringent standards. The establishment of a SouthAsian Regional Standards Organization is a verypositive step, and Nepal should work with others tomake this organization well recognized andaccepted internationally.Compliance with MultilateralEnvironmental AgreementsNepal has signed and ratified many differentMultilateral Environmental Agreements. Some likeCITES and the Convention on Biodiversity have welldefinedfocal points, but others need stronger actionand monitoring. While multilateral environmentalagreements related international organizations willnot have the same effect as the WTO, environmentalstandards are expected to get much stiffer in thedeveloped countries (Chaturvedi 2003), forcingcountries like Nepal to take stronger action on thedomestic front as well. Developing the institutionalcapacity and resources to move ahead on thedifferent multilateral environmental agreementsneeds stronger attention.Trade-related Intellectual PropertyRightsThe five-year period allowed for countries like Nepalto introduce legislation and other measures to meetthe provisions of Trade-related Intellectual PropertyRights (TRIPS) is already at hand. Nepal has onlyrecently announced new laws regarding patents,copyrights, and similar. However, the broaderimplications of this agreement are still hotly debatedboth nationally and internationally (Boyer 2001,190 Environment Assessment of Nepal : Emerging Issues and Challenges
Chaturvedi 2003, Adhikari 2004). The long-termimpacts on national biodiversity, genetic pool, localfood security, and protection of local innovation andtraditional knowledge are still being discussed. Withthe collapse of American leadership on internationalenvironmental issues, Europe now leads inpromoting new environmental standards (Boyer2001) and it is not clear how this will proceed.Adequate capacity and resources for research,analysis, information, local registration, andmaintaining a local registry are important practicalaspects for the future. This subject is still developing,and Nepal must do a significant amount ofhomework as it shares a common endowment andheritage in genetic resources, medical tradition, andagricultural practices with many South Asiancountries.Trade Environment SurveillanceWe know very little about the complex relationshipbetween trade and environment. Interest in thissubject grew only after the WTO agreement, whichmade it necessary to improve understanding of thetechnical aspects of trade and environment.Ignorance in this respect can be very costly in termsof the loss of export markets. Understandingdomestic trade and its environmental aspects alsoneeds to be significantly improved. In the long runthe need to improve domestic standards is veryapparent, especially regarding agricultural products.Nepal is a signatory to many different types of tradingregimes—bilateral, regional, and international. It isnot yet clear how each of these arrangements isserving the interests of the nation and what impacteach has on the environment. Unless trade andenvironment are closely monitored in their differentsettings, our capacity to negotiate better economicand environmental deals may be severelycompromised in the future.BibliographyAdhikari, D.R. 2004. “From Pollution to Responsibility.” InThe Kathmandu Post. 6 June. EnvironmentKathmandu.Available:http://www.environmentnepal.com.np/articles_d.asp?id=255Adhikari, R. 2004. “TRIPS Agreement: Implications forBiodiversity and Poverty in Nepal.” Kathmandu:South Asia Watch on Trade, Economics andEnvironment (SAWTEE)Ahmed, S., and Z. Sattar. 2004. “Impact of TradeLiberalization: Looking at the Evidence.” Economicand Political Weekly, 39(36): 4059–67.Andrew, D., K. Dahou, and R. Steenblik. 2004. “AddressingMarket Access Concerns of Developing CountriesArising From Environmental and HealthRequirements: Lessons From National Experiences.”OECD Trade Policy Working Paper, No. 5, Paris:Organisation for Economic Co-operation andDevelopment (OECD). Available:http://webdomino1.oecd.org/olis/ 2003doc.nsf/43bb6130e5e86e5fc12569fa005d004c/028bb89ef4f06073c1256f19003c65dd/$FILE/JT00169927.PDFBanskota, M. 2005. “Sustainable Human Development.” InThe Environmental Perspective: General Overviewand Nepal’s Experience. Paper prepared for UnitedNations Development Programme Nepal.Bardhan, P. 2001. “Social Justice in the Global Economy.”Economic and Political Weekly 36(5 and 6): 467–480.Bhagawati, J. 2001. “Growth, Poverty and Reforms.”Economic and Political Weekly 36(16): 843–846.Boyer, D. 2001. “Trade: The Connection BetweenEnvironment and Sustainable Livelihoods.” WorkingPaper, No. 5, Oxfam America, Boston. Available:http://www.oxfamamerica.org/newsandpublications/publications/ideas_at_oxfam/art5071.html/?searchterm=working%20paper%205Busse, M. 2004. “Trade Environment Regulation and theWorld Trade Organisation.” World Bank PolicyResearch Working Paper, 3361. Washington, DC: TheWorld Bank.Clean Energy Nepal (CEN), and Environment and PublicHealth Organisation (ENPHO). 2003. Health Impactsof Kathmandu’s Air Pollution. Kathmandu.Chaturvedi, S., and G. Nagpal. 2003. “WTO and Product-Related Environmental Standards: Emerging Issuesand Policy Options.” Economic and Political Weekly38(1): 66–74.Chaturvedi, S. 2003. “Agricultural Biotechnology andEmerging Trade Regime at WTO: Some Issues ofConcern.” In Trade and Biodiversity, edited by P.Balakrishna, and E. Warner, Colombo: The WorldConservation Union (IUCN), Regional BiodiversityProgramme, Asia.Consumer Unity & Trust Society (CUTS). 1999. “Trade andEnvironment—An Agenda for DevelopingCountries.” Briefing Paper No. 2, CUTS <strong>Centre</strong> forInternational Trade, Economics and Environment,Jaipur. Available: http://www.cuts-international.org/no2-99.pdfDhakal, S. 2003. “Air Pollution—Suffocating City.” SpotlightVol. 22 No. 25, January 03–09. Kathmandu. Available:http://www.environmentnepal.com.np/articles_d.asp?id=91Dhakal, S. 2004. “Biodiversity for Security.” In Spotlight,24(17). Available: http://www.nepalnews. com.np/contents/englishweekly/spotlight/2004/nov/nov26/national3.htmFederation of Nepalese Chambers of Commerce andIndustry (FNCCI). 2004. Nepal and the World: AStatistical Profile 2004. Kathmandu.Chapter 12: Environment and Trade191
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About the OrganisationsAsian Develo
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© 2006 International Centre for In
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AcknowledgementsWe would like to ex
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PM2.5PAHRSSAARCSACEPSEASO 2TSPUKUND
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Chapter 6: Energy Resources 65Intro
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List of FiguresFigure 2.1: People a
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Table 6.1: Energy Consumption and P
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forests are also used for infrastru
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as data gathered by different agenc
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Table 2.1: Population Growth Rates
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mortality rates for rural and urban
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Agglomeration village in the centra
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soil erosion, and depletion of wate
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provision remains inadequate becaus
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Malnutrition remains a serious obst
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Table 2.24: Existing and Projected
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Table 2.28: Income Poverty Indicato
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Table 2.31: Change in Employment St
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In 2004, the average annual househo
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Mountain areas have the most food i
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Schaffner, U. 1987. “Road Constru
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Table 3.1: Agricultural Economic De
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Table 3.4: Estimated Soil Erosion R
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B. PradhanImpacts of land degradati
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Carson, B. 1985. “Erosion and Sed
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The trend of forest coverage in the
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BiodiversityState of BiodiversityNe
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The Government has given legal prot
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Different ways of maintaining biodi
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———.2004. State of the Enviro
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Appendix 4.1: Table continuedMajor
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Appendix 4.2: Protected Plant and W
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Table A4.2.3: Nepal's Share in Plan
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to intense weathering, and percolat
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Table 5.5: Water Supply and Water T
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Table 5.9: Water Quality of Shallow
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species are reported to be endanger
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Ministry of Water Resources (MOWR).
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Definition, Forms, and UnitsEnergy
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Table 6.5: Hydropower PotentialRive
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Chilime Hydroelectric Project: An E
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load occurs from 6 pm to 9 pm with
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assessment of wind energy and lack
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Review of Dams and Development by t
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IUCNElizabeth Khaka, UNEP-NairobiRu
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therefore reflect the three guiding
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is a seasonal dust storm. Anthropog
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Figure 7.3: Average Air Quality, Ja
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matter, hydrocarbons, and NO x (Nae
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Figure: 7.9: Vehicle Registered in
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Brick Kilnchlorofluorocarbons (HCFC
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Climate ChangeA region’s climate
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Figure 7.14: Mean Annual Precipitat
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Table 7.3: National Ambient Air Qua
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India. Available: http://www.cleana
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———.1999. “Ambient Air Qual
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Appendix 7.1: World Health Organiza
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Table 8.1: Criteria for Urban Statu
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accommodate the rapidly increasing
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managing solid waste. They are part
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In most municipalities, hazardous w
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in worsening public health conditio
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objects of archaeological, historic
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Min BajracharyaB. PradhanVehicles a
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Department of Health Services (DOHS
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Table 9.1 describes the major highl
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the period to up 2017. The document
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earthquakes; and awareness raising
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Sub-regional LinkagesOther developi
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Figure 9.1: The Key Environmental I
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(iv)(v)(vi)plants, and other non-ti
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environmental governance can be bet
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can vary considerably. Both sides h
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Dhungel, D.N., and A.B. Rajbhandari
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Table A9.1.2: Industry-Specific Tol
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