Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Changes in the Nepalese goods export basket have been accompanied by a change in destination markets.Table 1.3 shows the 20 largest importing markets of Nepalese goods. Besides the dramatic rise in theimportance of the Indian market for Nepalese exports, the table shows the declining (or slow growing)importance of traditional ‘Northern’ export markets—EU, US especially—and the growing importance of newmarkets, especially those of the Asian and the Middle East and Gulf regions.Table 1.3Nepalese Goods Exports by Destination, 2004 and 2008, in US$1,0002008 Goods2004 Goods Import 2004 % shareNo. Importing CountryImports fromfrom Nepal of totalNepalTotal 684,209 953,6372008 %share of total% AnnualGrowth 2004-081 India 342,883 50.1 632,095 66.3 15.52 EU 128,260 18.7 127,349 13.4 -0.23 USA 156,140 22.8 92,302 9.7 -12.34 Canada 11,328 1.7 14,559 1.5 6.55 Turkey 4,532 0.7 14,412 1.5 33.56 Japan 7,570 1.1 11,229 1.2 10.47 Switzerland 7,768 1.1 6,767 0.7 -3.48 China 8,231 1.2 5,983 0.6 -7.79 UAE 434 0.1 5,011 0.5 84.310 Egypt 0 0.0 4,782 0.5 very large11 Australia 1,706 0.2 4,204 0.4 25.312 Philippines 15 0.0 3,647 0.4 294.913 Sri Lanka 78 0.0 3,566 0.4 160.014 Hong Kong 1,238 0.2 3,426 0.4 29.015 Sudan 8 0.0 3,350 0.4 352.416 Singapore 2,558 0.4 3,264 0.3 6.317 Bhutan 0 0.0 2,975 0.3 very large18 Malaysia 282 0.0 1,975 0.2 62.719 Pakistan 3,710 0.5 1,450 0.2 -20.920 Mexico 986 0.1 1,419 0.1 9.5Source: ITC Trade MapBlue: 30% or more increase; Yellow: decline1.4 Export Expansion and ‘Inclusive’ GrowthAn expansion of Nepal’s export base offers considerable opportunities to promote ‘inclusive growth’.A simulation exercise carried out in Nepal Trade Competitiveness Study 2 shows that growth in manufacturingand export sectors, which account for a reasonable portion of Nepal’s current export basket, can havepotentially significant, positive effects on the urban poor. Perhaps even more importantly, a switch fromtraditional subsistence agriculture to high value tradable crops (such as spices, herbs, tea, fruits, andvegetables, as identified later in this study) could have a major impact on the poor. These crops are producedin different regions; spice such as ginger production is more evenly distributed, except in far-western areas,2Ministry of Industry, Commerce and Supplies, 2004NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT7