Agreement
of Cooperation signed between FNCCI & Bhutan CCI
With a view
to promote the development of trade and economic relations between
the Kingdoms of Bhutan and Nepal and taking into consideration
the similarity of the objectives in terms of promoting trade,
industry, representation of interests of respective business communities,
receiving and disseminating market information, the two apex Chambers
of Bhutan and Nepal have signed an agreement of cooperation in
Thimphu on 14 March 2003.
Both the apex
Chambers having shown keen interests and equal desires to further
and enhance mutually beneficial trade and economic cooperation
between the business communities of the two friendly countries
have executed this Agreement during the first visit of the Delegation
from the Federation of Nepalese Chambers of Commerce and Industry
(FNCCI) to the Kingdom of Bhutan.
FNCCI Ex-officio
Vice President Suraj Vaidya and BCCI President Dasho Ugyen Dorji
signed the Agreement in the presence of Lyonpo Khandu Wangchuk
Minister for Trade & Industries of Bhutan.
As per the
agreement the FNCCI and BCCI will keep constant and close contact,
exchange of information in regards to trade, investment, technical
know how transfer, economic cooperation and each other's periodical
publications.
Like wise
FNCCI and BCCI will explore and exchange the opportunities of
cooperation in trade, agri-business, tourism, environment and
other fields of mutual interests. Each party will encourage and
assist its members, as and when required, to cooperate with the
respective counterparts in their endeavors to promote joint ventures
between the two friendly countries.
The agreement
envisages to form a Joint Economic Council hereinafter referred
to as JEC with the following Terms of Reference (TOR):
Investigate
and identify the fields for mutual cooperation and support.
Maintain a
continuous dialogue for the mutual benefits of the business communities
of the two friendly countries.
Study the
process of trade, investment and other forms of economic transactions,
identify the barriers in growth and suggest concrete and actionable
measures to the respective governments.
Prepare concrete
suggestions of policy and procedural measures for consideration
by the respective governments of both the countries.
Do any work
as may be required and requested to each other.
The JEC will
have two co-chairpersons and four members as may be nominated
by each side. The JEC meetings will be chaired by the co-chairperson
of the country where such a meeting is held.
The recommendations
prepared by the JEC will be submitted to the respective governments
of Bhutan and Nepal by the JEC jointly or separately as and when
such necessities arise.
As per the
agreement the FNCCI and BCCI will promote trade and economic linkages
between Bhutan and Nepal, particularly for the development of
small and medium size enterprises and will look into possible
cooperative endeavors involving third parties within the purview
and policy frame-work of each country.
Meanwhile,
a 20 member delegation of the FNCCI led by its Ex-officio Vice-President
Suraj Vaidya has returned from Bhutan after completing their visit
from March 12 to 16.
During the
visit the delegation met with Bhutanese Prime Minister Lyonpo
Kinzang Dorji, Foreign Minister Lyonpo Jigmey Y. Thinley, Minister
for Trade and Industries Lyonpo Khandu Wangchuk and other high
level officials of tourism and Power Department, Revenue and customs
Department and ABTO.
The meeting
held between the delegation and the Bhutan Chamber of Commerce
& Industry found out that some goods produced in Nepal have a
market prospects in Bhutan. The meet decided to work towards creating
on environment for simpler and easy trade.
The need to
promote trade by encouraging visits between the two countries
by simplifying the customs regulations of both the countries was
also discussed.
The FNCCI
has expressed satisfaction over the accomplishments of the delegation.
Nepal-India
Economic Cooperation at the private sector level striving ahead
The cooperation
and collaboration between the apex business organisations of Nepal
and India; FNCCI and ClI is marching ahead with renewed vigour.
The cooperation which started from May 1995, when the two organisation
signed a cooperation agreement to form a Joint Task Force to make
specific strategic recommendations to the governments of India
and Nepal for promotion of bilateral trade and investment has
already made considerable contributions in taking the economic
and business relationship between the two countries to newer heights.
The joint recommendations submitted to the Prime Ministers of
both the countries were instrumental in shaping the way the trade
and investment between the two countries are carried out. Since
then the two organisations have formed a Joint Economic Council,
which does not only look into the trade issues arising between
the two countries, but makes positive contribution in resolving
other economic issues. The JEC has become a reference point for
both the governments. The JEC has elaborately discussed on the
issues and made recommendations keeping in view the legitimate
interests of both the countries. The JEC has already had 12 meetings
and more than 40 meetings of several joint task forces and working
groups had taken place.
The cooperation
between the two organisations is not confined to trade issues.
The two organisations have had the experience of collaborating
in areas like quality, standards, environment, HIV-AIDS, corporate
social responsibility, trade fairs and so on. The two organisations
have already formed a joint group on hydroelectric power development
in Nepal. The group has decided to organise a roundtable conference
/ seminar on hydroelectricity in Kathmandu for making best use
of the complementarities. The JEC has also formed Task Forces
for expediting the Railway Arrangement and effective operation
of the ICD at Birgunj and Quarantine Check Posts with reduced
fees.
There have
been regular exchange of delegations between the two organisations.
Each organisation has been also active in organising special programmes
for the Heads of State or Heads of the Government.
The two organisations
recently have agreed to execute a number of promotional programmes
in near future. It is expected that a high level team of Indian
businessmen headed by CII President will make a visit to Nepal
in near future. Such visits apart from ensuring continued exchange
of opinions between the two countries and organisations will also
provide the opportunity to potential Indian investors, to gain
a first hand experience and knowledge on the potentials of investing
in the improved business climate in Nepal.
The two organisations
are also looking at how Nepalese, Indian and Chinese businesses
could collaborate for promotion of stronger business ties among
the three countries and export from Nepal, in particular.
FNCCI and
CII have also decided to give a further boost to Nepal-India economic
cooperation and for this Nepal-India Economic Summit will be organised
in Kathmandu.
The two organisations
have drawn up concrete proposals to cooperate in issues like child
labour, corporate governance, environment etc.
The FNCCI
is working for entrepreneurship incubation programmes along the
line of Bharatiya Yuba Shakti Trust being promoted by CII. In
this regard, the CII will be extending technical support to the
FNCCI on how such programmes could be made successful.
The two organisations
have also drawn up a proposal to organise a joint trade fair in
Kathmandu. CII has been regularly organising fairs in big ways
in India and abroad.
The FNCCI
is also planning to organise a number of Investment Promotion
Seminars in the state capitals of India in cooperation with CII.
These seminars will focus on specific areas where Nepal has comparative
and competitive advantage. The two organisations apart from continuing
to work together in policy issues are marching ahead in collaborative
endeavors in areas like hydropower, tourism etc.
An export
promotion seminar with the objective of promoting Nepalese export
to India was also jointly organised by FNCCI and TPC on 13th March
2003 in Kathmandu.
World
Tourism Entrepreneurs to gather in Nepal
The SKAL Asian
Area Assembly, a representative organization of hotel, travel
agencies and other industries related to tourism is to host in
Kathmandu in the end of May the global conference of SKAL group
members.
Tourism entrepreneurs
from around 100 countries are expected to take part in the conference
to discuss and exchange views on various projects, working strategy
and share experiences. This was stated at press gathering organized
by the SKAL members recently in Kathmandu.
Nepal
Promotion Centre Established in Germany
Nepal Promotion
Centre (NPC) has been established at Wiesent Martiniplatte near
Munich, stated a pres release issued by NPC in Germany/Europe
in Kathmandu on February 3, 2003.
"Established
and to be operated, funded entirely by Implementing Experts Group
(group of Nepalese entrepreneurs, professionals and artisans)
and Heribert Wirth, Founder Chairman of a German social organization
Wasser fur der Welt (Water for the World), NPC will endeavour
to contribute in the economic and social development of Nepal
and also to strive for the promotion of trade, investment, tourism
and technological development between Nepal and Germany/Europe,"
read the press communiqué.
According
to NPC, it will organize various promotional programmes during
summer months (May to October) and is to be operated from the
popular Himalayan Pavilion which has been transported and re-erected
recently at Wiesent-Matiniplatte by Implementing Experts Group
and Herbert Wirth. The Pavilion which stretches along 25 hectares
of land, presents together Syambhunath Stupa and Changunarayan
Temple.
Rising
input cost hits agro-output
Nepal's overall
agriculture productivity has always failed to match its immense
potential due mainly to ever-rising cost of agro-inputs, states
a report recently prepared by the government.
The soaring
cost of various agro-inputs including irrigation, fertilizers
and seeds among others has adversely affected the entire agriculture
sector, which has been generating income to almost 83 percent
of the population.
The report
prepared by Nepal Agriculture Research Council (NARC) was presented
at the 9th regional steering committee meeting organized by Rice
Wheat Consortium in the capital.
The report
has also stressed on the need of increasing agro-productivity
of the country as the arable land for per person in Nepal has
decreased by almost 500 square meters in last 40 years. "There
is an immediate need of increasing productivity of the country
to counter the rising fear of food insecurity due to the gradual
decrease in production," cautions the report of Nepal.
Garment
export to US surges
Export of
garments to the United States, which absorbs almost 85 percent
of the total garments exported abroad from Nepal, surged in February.
Such an increment comes for the seventh straight month.
Export data
released by Garment Association Nepal (GAN) recently reveals that
exports to the US increased by over 72 percent in February this
year as compared to the exports of the same month last year.
Entrepreneurs
hope that the latest series of upturn would sustain in the longer
run. The upturns come at a time when a US senator is drafting
a bill to allow preferential entry to Nepali garments in the US
markets.
Garment exports
to the US has been on an upturn since August 2002, prior to which
it had declined for thirteen consecutive months. However, despite
the increments over the last seven months, the dollar value of
exports is not yet up to the mark of 2000 and 2001.
Handicraft
exports declined
The gloom
running in the handicraft industry, which mostly represent self
employed small and medium enterprises (SMEs), continued during
the first half of the current fiscal year with exports recording
a decline of 7.15 percent.
Exports of
the handicraft goods during the period was valued at Rs. 1.48
billion, while it was Rs 1.58 billion during the like period last
year, according to a figure released by Handicrafts Association
of Nepal (HAN).
The overall
export figure of handicraft goods was pulled down largely by a
decline of over 26 percent recorded in the export of pashmina,
which is the third largest exports of the country and the largest
handicraft item. Pashmina export comprises some 70 percent of
the total handicraft exports in general.
Hit by the
global slowdown and domestic turmoil, pashmina exports plunged
to Rs. 675.61 million during the period against the export of
Rs. 916.03 million recorded during the like period last year.
