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N T I S2010Table 8.3Selected Recent SPS-related Bans on Agricultural Exports from Nepal*Product Type of ban PeriodGingerHoneyLentilsIndia banned imports from Nepal due to plantquarantine issues and later due to trade policyEU and Norway banned imports from Nepaldue to lack of monitoring programmes forpesticides and other residuesIndia banned imports from Nepal due toquality tests and fumigation requirementsDisruption occurred in 2004Banned since 2002/03,though partially circumventedby one producer/exporterFor approximately one yearin 2003/04Approximate value ofexports lostNRs 1.6 billionNRs 76 million(approximately NRs 9.4million for eight years)NRs 100 million* Source; Report No: 48346-NP Project appraisal document on a proposed credit in the amount of SDR 7.2 million(US$10.71 million equivalent) and a proposed grant in the amount of SDR 6.3 million (US$9.29 million equivalent) toNepal for a Project for Agriculture Commercialization and Trade (PACT) May 05,2009.8.3 WTO SPS Enquiry Points in NepalNepal has largely complied with the WTO requirements in setting up its SPS enquiry points and in notifyingthe relevant WTO structures of relevant legislation, regulations, border crossings, and so on. Websites havebeen set up for all the SPS enquiry points, and addresses/contact details for these were more or less up todate, with the exception of the details for the Nepalese plant protection contact point on the InternationalPlant Protection Convention (IPPC) website. The main SPS website for Nepal is slightly out of date and needsrevisiting.Figure 8.1Structure of SPS Enquiry Points in Nepal 2WTO - SPS, Biosafety and Biodiversity Inquiry / Contact / Focal Points in Nepal - January 2010Ministry ofAgriculture andCooperativesMinistry ofForests and SoilConservationDepartment of FoodTechnology and QualityControl (DFTQC)Department of LivestockServices(DLS)Department ofAgriculture(DoA)WTO/ SPSContact PointCODEXContact PointOIEContact pointIPPCContact PointBiosafety andBiodiversityfocal point2Acronyms refer to the following: CODEX is the commonly used acronym for the CODEX Alimentarius Commission hosted by FAO and jointlyrun by the FAO and WHO. CODEX sets minimum standards for foods and food safety. The OIE is the commonly used acronym for the WorldOrganization for Animal Health, a Paris-based body under the WTO SPS Agreement that is responsible for setting trade standards in animalsand to some extent in animal products. Post-mortem animal products are a grey area and there is some collaboration between the OIEand CODEX on standards in fresh meat products, in particular to residues in meat and some meat-borne zoonoses. The IPPC refers to theInternational Plant Protection Convention, which is hosted by FAO at its Rome headquarters and is responsible for international standards intrade that affects plant health.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT189
N T I S2010GeneralNepal’s general and specialist SPS enquiry points are maintained within the MoAC. The Ministry has fourdepartments respectively dealing with food technology (DFTQC), animal health (DoLS), crop production(MoAC), and cooperatives (Department of Cooperatives, DoC). The general SPS and CODEX Alimentariusenquiry points are maintained by the DFTQC. CODEX is the international food standards-setting body runjointly by the Food and Agriculture Organization (FAO) and the World Health Organization (WHO). TheOrganisation International pour les Epizooties (OIE) animal health contact point is maintained by the DoLS.The plant health (IPPC) contact point is maintained by the DoA. This is shown in Figure 8.1. A brief explanationof the acronyms and functions of the corresponding WTO organizations is given in the endnote to Figure 8.1.WTO SPS Enquiry Point: DFTQC, Legal Status and OrganizationThe DFTQC is the designated WTO SPS enquiry point for Nepal. An SPS central coordination committee hasbeen formed headed by the Secretary, MoAC, with representation from MoCS, MoFSC, MoHP, as well asthe Animal and Plant Quarantine offices within the MoAC. The private sector members of the Federation ofNepalese Chambers of Commerce and Industry (FNCCI) also work with government and also function as themain lobbying organization on behalf of business. A website has been launched by the DFTQC to disseminateinformation about SPS matters in general. This has links to the other specialized SPS enquiry points. 3The SPS enquiry point at the DFTQC is part of a complex that includes food testing laboratories as well asthe headquarters building. New laboratory and head office buildings are under construction with assistancefrom the Japan International Cooperation Agency (JICA). The upgrade of laboratory equipment, training,and a wide range of supporting activities are underway at the DFTQC and the NBSM with funding by theEU and implementation by the United Nations Industrial Development Organization (UNIDO), UNESCAP andPhysikalisch-Technische Bundesanstalt (PTB, the national metrology institute of Germany). 4 The currentheadquarters building is inadequate for the purpose and the new one will have facilities for holding workshops,training sessions, and other larger meetings, as well as better library facilities for CODEX and other relatedliterature. There are interactions with WHO Food Safety (FOS) programme that supported the drafting ofa national food safety policy, which became available at the end of 2006 and probably needs further publicdiscussion and consultation. The WHO FOS programme covers the food safety dimension of public health, butfunding under this programme is limited.In addition, the department has been given considerable assistance to attend regional and international SPSmeetings. As part of general awareness-raising within Nepal, the DFTQC has been circulating the scheduleof these meetings to interested parties so that they can attend them, if they so desire. The DFTQC also hasestablished the National SPS Committee with representation from a range of members, including the MoHP,MoCS, and the FNCCI. There are plans to set up 17 subcommittees for different commodities, but, as yet,these are not functional.3http://www.spsenquiry.gov.np/. This site has links to both the plant (http://www.ppdnepal.gov.np/) and animal health (http://www.dls.gov.np/) websites dealing with SPS issues.4Anonymous (2009), Revisit of Indicative Timeline by NBSM/DFTQC as per decision of the Technical Committee Meeting – Submitted toProgramme Steering Committee Meeting, 30 July 2009 (Amended based on stakeholder comments and discussion, 20 August 2009) Annex II. -Indicative Timeline (20 August 2009).190NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT
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Nepal Trade Integration Strategy 20
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Table of ContentsForewordAbbreviati
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Table 2.17 Acreage and Production o
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List of BoxesBox 2.1 A Nepalese IT
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LoD Limit of DetectionM&E Monitorin
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Chapter 1Trading Environment, Expor
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N T I S20101.3 Capacity Development
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N T I S2010Table 1.1Balance of Paym
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N T I S2010Changes in the Nepalese
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N T I S20101.5 Expanding an ‘Incl
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N T I S2010 Index 4 measures the po
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N T I S2010Table 1.9Impact of 19 Ex
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N T I S2010Table 1.10Geographical D
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N T I S20101.7 Declining Importance
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N T I S2010negotiate for the inclus
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N T I S2010Types of Exported Produc
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N T I S2010Table 2.2Large Cardamom:
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N T I S2010Index 4: Socio-economic
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N T I S2010Index 1: Export Performa
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N T I S2010exporters. Nepal permits
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N T I S2010RankCountryExports Nepal
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N T I S2010like China and Australia
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N T I S2010The opportunities for pr
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N T I S2010Lentils are subject to o
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N T I S2010Production Capacity: Nat
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N T I S2010Gender Impact: This sect
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N T I S2010Export Prospect: Accordi
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N T I S2010Cost and Quality of Infr
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N T I S2010Attractive markets for T
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N T I S2010Market Access Conditions
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N T I S2010Gender Impact: The respo
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N T I S2010Information from industr
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N T I S2010RankCountryTable 2.26Att
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N T I S2010# Botanical Name 41 Spec
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N T I S2010Current Export Destinati
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N T I S2010significant attention fr
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N T I S20109) Silver JewelryBackgro
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N T I S2010Availability and Quality
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N T I S2010Attractive Markets for S
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N T I S2010Production Capacity: Nep
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N T I S2010ii.iii.required for the
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N T I S201012345678910# Name of Ste
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N T I S2010Export Prospect: Accordi
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N T I S2010Gender Impact: Female wo
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N T I S2010The value added of those
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N T I S2010sheep population, which
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N T I S201013) TourismBackgroundTou
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N T I S2010Index 2: World Market Co
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N T I S2010There are also about 24
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N T I S2010Index 1: Export Performa
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N T I S2010Index 2: World Market Co
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N T I S2010Contribution to Skill De
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N T I S2010Types of Exported Servic
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N T I S201016) Health ServicesBackg
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N T I S2010medical services are bei
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N T I S201017) Education ServicesBa
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N T I S2010should be interpreted ca
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N T I S2010foreign students. The me
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N T I S2010Under mode 4 (presence o
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N T I S2010Index 4: Socio-economic
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N T I S2010generate revenue of US$3
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N T I S2010monopsony power. Several
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N T I S2010The possibility of direc
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N T I S2010Dairy Products, specific
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Chapter 3Access to the Indian Marke
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N T I S2010The Nepal-India Trade Tr
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N T I S2010Most issues reported abo
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N T I S2010Nepalese Domestic Issues
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N T I S2010India’s view is that t
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Chapter 4Access to the Chinese Mark
Page 152 and 153: N T I S2010products must be wholly
Page 154 and 155: N T I S2010The findings discussed h
Page 156 and 157: N T I S20104.5 Other Impediments to
Page 158: N T I S20104.7 Recommendations: Cha
Page 161 and 162: N T I S2010inflow between 2000 and
Page 163 and 164: N T I S2010Industrial Parks and SEZ
Page 165 and 166: N T I S2010Lack of up-to-date polic
Page 167 and 168: N T I S2010Apart from the critical
Page 169 and 170: N T I S2010capabilities in all five
Page 171 and 172: N T I S20105.5. Combining Investmen
Page 174 and 175: Chapter 6Trade FacilitationN T I S2
Page 176 and 177: N T I S2010In the 2005 Trade Facili
Page 178 and 179: N T I S2010The latest phase of impl
Page 180: N T I S2010improve efficiency. Few
Page 183 and 184: N T I S2010Figure 7.1Future Organog
Page 185 and 186: N T I S2010EU countries, special pr
Page 187 and 188: N T I S2010Act 1980. So far, 130 fi
Page 189 and 190: N T I S2010The current projects inc
Page 191 and 192: N T I S2010The NBSM as a secretaria
Page 193 and 194: N T I S2010Many more organizations
Page 195 and 196: N T I S2010Table 7.8Existing Nepal
Page 197 and 198: Table 7.9Standards Issues for Ten E
Page 199 and 200: N T I S20107.14 Priority Actions an
Page 201: N T I S2010It is not clear what amo
Page 205 and 206: N T I S2010a crucial part of the PR
Page 207 and 208: N T I S2010residue limits (MRLs) ar
Page 209 and 210: N T I S2010The viral diseases chirk
Page 211 and 212: N T I S2010SPS issues Affecting Tra
Page 213 and 214: N T I S2010Indian phytosanitary sta
Page 215 and 216: N T I S20108.5 Conclusions and Reco
Page 217 and 218: N T I S2010Simpler requirements suc
Page 219 and 220: Table 8.4Summary of Export Environm
Page 221 and 222: N T I S2010To register a patent, a
Page 223 and 224: N T I S2010breaches of law. The Nep
Page 225 and 226: N T I S2010Intellectual Property is
Page 228 and 229: Chapter 10Barriers to Service Trade
Page 230 and 231: N T I S2010Constraints in the touri
Page 232 and 233: N T I S2010Table 10.2Nepal GATS Com
Page 234 and 235: N T I S2010locations favourable for
Page 236 and 237: N T I S2010Barriers to Exports of H
Page 238: N T I S2010Institutional IssueThe s
Page 241 and 242: N T I S2010 Strengthening sub-natio
Page 243 and 244: N T I S2010Observations from enterp
Page 245 and 246: N T I S2010Nepal Ginger Producers a
Page 247 and 248: N T I S2010 Helping paper manufactu
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Page 251 and 252: N T I S20105. Also related to the a
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N T I S2010The key principles inclu
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N T I S2010That being said, Nepal h
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N T I S2010Nepal Business ForumOn M
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N T I S2010Third, capacity developm
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N T I S2010expected to emerge from
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N T I S201012.7 Possible Options fo
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N T I S201012.8 RecommendationsThe
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N T I S2010GoN / MoF (2009), Econom
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N T I S2010Thapa, Ajit N.S. (2006).
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N T I S2010NEPAL TRADE INTEGRATION
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N T I S2010MainOutcomes Recommended
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N T I S2010NEPAL TRADE INTEGRATION
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N T I S20102. GINGERStrengths Tradi
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N T I S20104. LENTILSStrengths High
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N T I S20105. TEAStrengths Very fav
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N T I S20106. INSTANT NOODLESStreng
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N T I S2010 Review, simplify, and i
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N T I S20109. SILVER JEWELRYStrengt
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N T I S201011. CHYANGRA PASHMINA PR
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N T I S201013. TOURISMStrengthsNatu
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N T I S201015. IT AND BPO SERVICESS
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N T I S201017. EDUCATION SERVICESSt
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N T I S201019. HYDRO-ELECTRICITYStr
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Appendix 1Methodology for Export Po
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N T I S2010B. Data SourcesThe analy
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Appendix 2Market Attractiveness Ind
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N T I S2010Rank13) Tourism1 Germany
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Appendix 3Updated Legislative Actio
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N T I S2010specified management sys
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N T I S2010than pesticide residues
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Appendix 5Malaysia GAP (Skim Amalam
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N T I S2010E. Document ControlQMS d
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Appendix 7Good Agricultural Practic
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