The US has started implementing a trade preference programme for Nepal under which different types of products that meet eligibility criteria will be imported duty-free from the Himalayan nation.
The Nepal Preference Programme is authorised for ten years and designed to help Nepal’s economic recovery from the earthquakes that struck the country in 2015, according to a statement by the US Embassy. Trade Facilitation and Trade Enforcement Act of 2015, was signed by US President Barack Obama yesterday.
It will also help Nepal in making disaster resilient buildings.
Though the move is a very generous and supportive step for Nepal, it can be seen as another step by US for its Asian pivot point approach. It may make a opening for US in the Asian region, close to China and India.
Also, the exports by Nepal could also be done by Indian states in the Himalayan region. This may also increase the economic competition.
(inputs from PTI)
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