Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S20101.3 Capacity Development Actions and ProposedShort- to Medium-term PrioritiesActions identified by the NTIS team to support the four capacity development objectives are consolidated inthe Action Matrix (Part I and Part II) presented in this study immediately after Chapter 12 and reproduced inthe Executive Summary as well.As suggested by the Action Matrix, the business of developing a competitive export supply for the futurecan be wide-ranging and demanding. Many areas of capacity development are needed. But capacitydevelopment takes time and can be resource (human and financial) -intensive. Furthermore, the resourcesneeded to develop capacity–be they domestic or from ODA–are limited, and their use must be prioritized.The multiplicity of required actions may lead to confusion as to where to begin. And the risk is that confusionmay lead to inaction. And, yet, policymakers are under pressure to respond to short-term needs of incomeand job creation.Ultimately, it is for Nepalese policymakers to chart a course through a rather rich agenda of actions, weighingin some of those factors and others as well. Nevertheless, the background studies prepared under the NTISdo suggest a possible short- to medium-term strategic course that would prioritize some key actions or areasof actions, as follows:1. Nepal should focus its short- to medium-term efforts on the proposed list of 19 export potential goodsand services--and among those, possibly even more so, on the groups of agro-food exports and serviceexports;2. Nepalese trade negotiators should take deeper knowledge of the attractive destination marketsidentified for each of the 19 export potentials in the NTIS and ensure favourable market accessconditions in those markets. In most cases, this would include enhanced bilateral negotiations (possiblyregional also). An appropriate agenda for such would need to be developed, with supportive analyticalwork as required. India, other SAARC countries, China, selected Gulf and Middle East countries shouldbe priority targets;3. Efforts to build a competitive export supply capacity in agro-food could focus initially on setting upa number of Good Agricultural Practice (GAP), Integrated Pest Management (IPM) and QualityManagement System (QMS) in selected agricultural commodities to be accompanied by Third PartyCertification (TPC) programmes to enhance the quality and quantity of supply and lower the currentburden of Sanitary and Phytosanitary (SPS) certification for exports. NTIS 2010 proposes four sectorsthat could become initial targets for such programmes: tea, lentils, cardamom, and ginger. Suchefforts could be supported by the introduction of Geographical Indications (GIs) for some of thosecommodities. Progress on regulations under the new Plant Protection Act, on amending the currentFood Act, on reviewing the Pesticides Act and Pesticides Rules should also be accelerated;4. The creation of a Board of Investment should be accelerated. Nepal is missing out on opportunitiesto attract FDI, including the FDI aimed at potential export sectors. There should be some alignmentbetween targeted sectors for investment campaigns and potential export sectors promoted under theNTIS;5. Except for the businesses located in Kathmandu valley, trade information and trade support servicestrickle down rather poorly to businesses in most regions, including those in the export potential sectorsthat should be targeted. A Trade Support Network (TSN) should be organized and developed with aninitial strong focus on building the capacity of product associations in the export potential sectors. Are-definition of Trade and Export Promotion Centre’s (TEPC) functions and mission and its restructuringshould be accelerated as part of this effort;NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT3