Context
In 2010, the Nepalese Ministry of Commerce and Supplies joined with international and bilateral donors to formulate the Nepal Trade Integration Strategy (NTIS). NTIS, the Nepalese Government’s roadmap for export-sector development, sets out short to medium-term priorities for trade-driven inclusive growth. NTIS is the government’s key instrument for leveraging trade-related development cooperation – Aid for Trade – with multilateral and bilateral donors and thus for significantly improving the country’s trade capacity and performance. The strategy is part of the Enhanced Integrated Framework (EIF), an Aid-for-Trade initiative backed by several donors.
Objective
The Government of Nepal and the private sector are better able to implement the Nepal Trade Integration Strategy (NTIS) designed to foster Nepal’s inclusion in regional and international markets.
Approach
NTIS improves the political, legal and regulatory framework for companies as well as their access to trade-facilitating services. As a result, Nepalese companies’ international competitiveness and trade performance increase.
The project is currently geared to small and medium-sized companies exhibiting export and employment potential in three value chains: honey, medicinal and aromatic plants and silver jewellery.
Commissioned by Germany’s Federal Ministry for Economic Cooperation and Development (BMZ), GIZ is assisting the Nepalese Ministry of Commerce and Supplies (MoCS) and other partners with project implementation. In addition to the National Implementation Unit set up by MoCS, other partners include the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the government’s Trade and Export Promotion Centre (TEPC).
The project covers three areas of activity:
Strengthen the private sector and business service suppliers in specific value chains
Private and public-sector actors in three value chains – silver jewellery, honey and medicinal and aromatic plants – work together in core groups. The project assists them to draw up and roll out action plans while strengthening their specialist and coordination skills. These measures raise their international competitiveness and make it easier for them to access international markets, ultimately increasing the level of exports.
Promote coordination between the public and private sectors
To strengthen cooperation between the public and private sectors in trade-related matters, the project is promoting the introduction of consultancy mechanisms, e.g. on new legislation or changes to the law. By engaging in dialogue, business and politics – together with academia and civil society – identify and break down tariff-related and non-tariff-related trade barriers. Other key topics for public dialogue include trade-related property rights and environmental and quality standards.
Build the capacity of the National Implementation Unit to roll out the Nepal Trade Integration Strategy (NTIS)
The National Implementation Unit of the Ministry of Commerce and Supplies is receiving support in developing specific capacity to enable it to implement the Nepal Trade Integration Strategy (NTIS). This includes individual and institutional competences for resource mobilisation, monitoring and evaluation, improved information exchange and organisational development.