Nepal, China agree on duty free treatment

KATHMANDU - China and Nepal on Friday signed an agreement, according to which China has agreed to provide a 97 percent duty free treatment for major export products from Nepal.

The duty free treatment will be applied to 8,030 major export items of Nepal.

The memorandum of understanding was signed by Secretary of Ministry of Commerce and Supply Narayan Gopal Malego and Chinese Ambassador to Nepal Wu Chuntai.

China has been the second largest trading partner of Nepal in import, and seventh largest in export.

Secretary of Ministry of Commerce and Supply Narayan Gopal Malego expressed appreciation to China's assistance as beneficial to reduce the trade deficit and to boost economic growth.

Malego said, "This letter of exchange will not only expand bilateral trade but will also guarantee export of Nepali products to China."

Nepal mainly exports pashmina, food items and different agricultural products to its northern neighbor while it imports garments, electronic goods and machinery items.

On the occasion, Chinese Ambassador to Nepal Wu said the agreement is a positive mark for the Nepalese exporters to enhance business.

Nepal exported the products worth $2.5 billion China on 2013.