Assessment of Trade and Competitiveness Barriers to Nepal’s Export Sector


By Rabi S. Sainju

Nepal’s balance of trade continues to be plagued by the problem of ever-growing imports but stagnant exports. Significant gaps and barriers in trade have impacted the export sector and the ever-escalating trade deficit worsens the economic situation. This assessment paints an overall picture of exports by comparatively examining the direction of foreign trade, cost of trade, and logistics performance across neighboring countries. It then illustrates both tariff and nontariff barriers ranging from taxes imposed on Nepali goods by other countries to the Government of Nepal’s own restricting regulations and procedures respectively, along with poor infrastructure as serious impediments to growth. Cross-examining the gaps and constraints when it comes to the export potential for the country’s 10 most exported products, this study provides recommendations on much-needed policy reform and interventions.
Posted November 1, 2021
Related locations: Nepal
Related programs: Inclusive Economic Growth