The world’s second largest economy China Friday added more Nepali products to its zero-customs duty list, taking the number of Nepali products enjoying the facility to above 8,000.
An agreement on ease of access for more Nepali products to the Chinese market was signed on Friday to help Nepal bring down its burgeoning trade deficit with China, which crosses millions of dollars annually.
China’s Ambassador to Nepal Wu Chuntai and Secretary at the Ministry of Commerce Narayan Gopal Malego signed a Letter of Exchange in Kathmandu on Friday, December 5, 2014.
According to the new agreement, 8,300 Nepali products will receive duty-free facility into China. The deal will be fully implemented by the end of 2015.
Previously, China extended the facility to 4,721 Nepali products in 2007 and in 2012, 7,787 Nepali products were on the list.
While most of the goods on the list are agriculture-based, some non-agricultural products are also in the list.
China is Nepal’s second largest trading partner after India. In the current fiscal year, Nepal has so far exported products worth $23.2 million to China while importing products worth $695 million.
Nepal and China first inked a deal on economic and technological support on July 2006.