Kathmandu. Kathmandu: Prime Minister’s Economic Advisor Dr Yubaraj Khatiwada has stressed the need to attract more FOREIGN direct investment (FDI) of the US to Nepal to increase foreign trade with the US.
Speaking at an interaction on ‘Nepal-US Trade: Opportunities and Challenges’ jointly organised by Nepal Garment Association, Nepal-USA Chamber of Commerce and Industry and Nepal Carpet Manufacturers and Exporters’ Association in Kathmandu on Wednesday, Dr Khatiwada, who is also the former Finance Minister, stressed the need to attract more investments to Nepal from there to increase trade with the US.
According to him, this investment strengthens the value chain of our products while emphasizing US foreign direct investment. Which gives a new height to exports. Along with investment, modern technology also comes, which will help make our products more competitive in the global market.
Khatiwada said Nepal could benefit a lot from bilateral investment agreement with the US if it could pursue trade relations. According to him, Nepal should be able to take forward the tax agreement (DTA) even if there is a need for tax agreement (DTA) as investment increases in the future.
Khatiwada said, “If you want to promote trade with the US and find the trade market, then the US FDI must be promoted. Promoting FDI will increase exports due to the effect of value change. Technology will also come with FDI. Trade competition will also increase. If we go to a bilateral investment (BIT) with the US, we can take advantage of that trade relationship. Even if we have to do DTA as the investment increases tomorrow, we should be able to take that forward as well. ’
Arguing that Nepal’s bilateral trade relationship should be non-reciprocal, khatiwada said nepal was making progress from least developed countries to developing countries and it should convince the US and other large trading partners about nepal’s situation and the need for favourable treatment for goods exported from Nepal.
According to Khatiwada, the FATF has blacklisted countries to do business in different countries of the world, including the UNITED States. Khatiwada said the country should be removed from the grey list as soon as possible by effectively implementing the recommendations given by the FATF.
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