WTO/EIF Support Programme

Programme description

Title: Supporting Nepal’s implementation of its WTO commitments and the Enhanced Integrated Framework (WTO/EIF Support Programme)
Commissioned by: German Federal Ministry for Economic Cooperation and Development (BMZ)
Country: Nepal
Lead executing agency: Ministry of Commerce and Supplies (MoCS)
Overall term: 2010 to 2012

Context

In April 2004 Nepal became the 147th member of the World Trade Organization (WTO). Despite its weak institutional resources and performance, lack of technical know-how and limited financial resources, Nepal negotiated a relatively comprehensive accession package. Nevertheless, with increasing global economic integration, the country's balance of trade has worsened dramatically in recent years. If Nepal is to benefit from existing and newly created market access opportunities that are opening up thanks to its WTO membership, an enabling environment will have to be created for producers and exporters, and the relatively weak supply chains will have to be strengthened for the export sector by implementing appropriate measures.

The WTO established the Enhanced Integrated Framework (EIF) in 2005 to provide support in the planning and implementation of sector-wide approaches to trade promotion. A fund of up to USD 250 million for a period of 5 to 10 years will be used to support 47 of the world's least developed countries (LDCs) as they expand their trade. Since November 2010 Germany has been the EIF Donor Facilitator at the political level, with the WTO/EIF Support Programme working at the functional level. The Donor Facilitator acts at an important interface between the EIF Secretariat in Geneva, the Nepalese Government, and other donors in Nepal.

Objective

The capacities, resources and effectiveness of the Nepalese Government have been strengthened, so Nepal can improve its business environment through the strategic implementation of its WTO commitments and the EIF.

Approach

The project covers four areas:

  1. The project is assisting the Planning and International Trade Cooperation Division (PITCD) within the Ministry of Commerce and Supplies (MoCS) in establishing a monitoring system for implementation of Nepal's WTO commitments with a focus on technical barriers to trade (TBT) and the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS).
  2. The project is helping the business community and their main business service providing agencies to understand the pros and cons of different options for product differentiation, such as labelling, certification, branding and geographical origins. Action plans will then be developed and implemented in cooperation with the WTO Focal Points within Nepalese ministries. The project supports the implementation, in pilot projects, of parts of these action plans.
  3. Mechanisms are being created for public–private dialogue in the context of Nepal's accession to the WTO and implementation of the Nepal Trade Integration Strategy (NTIS). Awareness should be raised in multi-stakeholder discussions about the need for government and business to take action collectively.
  4. The project supports the National Implementation Unit of the Ministry of Commerce and Supplies (MoCS-NIU) in fulfilling its tasks. The NIU has a key role to play when it comes to the implementation of the NTIS at technical level. These tasks include management of trade-related technical assistance/aid for trade (TRTA/AfT), resource mobilisation and monitoring, PR work and communication, and support for other bodies within Nepal's EIF implementation structure, such as other ministries, the National Planning Commission and others.

The project also performs the role of EIF Donor Facilitator.

Results achieved so far

The group of 15 WTO Focal Points in various ministries have received advice and training so as to be able to carry out their mandate. The project is also supporting the MoCS as it fulfils its coordinating role with regard to implementing the WTO commitments and the NTIS. A joint action plan was developed to implement these WTO commitments, and first parts of that plan have been implemented.

National TV and radio programmes addressing the issues of 'trade policy' and 'WTO membership' have been produced and broadcast in cooperation with the South Asia Watch on Trade, Economics and Environment (SAWTEE). The importance of these issues has also been confirmed by all relevant actors in the context of a public–private dialogue.

Action plans on medicinal plants and silver jewellery have been developed in cooperation with private sector representatives in order to implement the NTIS jointly as a pilot project.

Those involved in the project have access to a website with information on the status of implementation of Nepal's WTO commitments, and progress made with the NTIS. The site also provides a lot of other information.

Additional information