In­creas­ing Ex­ports to China

Southasia - - Briefing -

China has re­cently risen as Nepal’s fourth largest ex­porter dur­ing the first five months of 2012/13. The ex­ports from Nepal to China have in­creased by over 250 per­cent, a stag­ger­ing fig­ure that hints at the hid­den po­ten­tial of China’s land­locked neigh­bor. The other three main ex­port­ing coun­tries of Nepalese goods in­clude In­dia, the USA and Bangladesh.

Nepal’s top five ex­ports to China in­clude medic­i­nal herbs, an­i­mal hide and skin, wheat flour, metal statutes, and car­pets. How­ever, the ex­port of medic­i­nal herbs, the chief ex­port to China, has in­creased by 478 per­cent. This sud­den rise is a di­rect re­sult of a sub­stan­tial com­mer­cial­iza­tion of medic­i­nal herbs farm­ing in Nepal. Ac­cord­ing to data gath­ered by the Trade and Ex­pert Pro­mo­tion Cen­ter (TEPC), from Jan­uary to May 2012, China ex­ported goods worth Rs. 1.21 bil­lion from Nepal as com­pared to Rs. 342.4 mil­lion in the same pe­riod last year, show­ing an in­crease of 36.7 per­cent. This comes at a time when Nepal, mired by po­lit­i­cal in­sta­bil­ity, is look­ing to cor­rect its bal­ance of pay­ments and sta­bi­lize its eco­nomic struc­ture, which has taken a hard hit due to na­tional pol­i­tics.

In terms of other ex­ports, the eco­nomic re­ces­sion in Europe, the main mar­ket for Nepali car­pets, com­pelled Nepal to re-pri­or­i­tize and ex­plore Chi­nese mar­kets. The ex­port of car­pets to China, there­fore, in­creased by Rs. 68.9 mil­lion. The lib­eral trade poli­cies of China and Nepal, al­low the two neigh­bors to eas­ily im­prove their bi­lat­eral trade re­la­tions.

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