Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Actions for Addressing SPS Issues in Nepalese ExportsThere is ample evidence that the SPS-related trade measures imposed by Nepal’s trading partners arehampering exports of SPS-sensitive exports. In terms of the available evidence, these measures are fair and,therefore, the correct response is to address them, if possible, in a pro-active manner. Many of these issuesarise out of the nature of agricultural production and marketing in Nepal and, therefore, it is in the interestsof all to support efforts to achieve consolidation in this area. The development of cooperatives and marketingassociations take in hand a large number of other development goals into which addressing the identified SPSconstraints fit neatly. Indeed, some SPS goals such as the introduction of GAPs are truly crosscutting.Issue 1: Consolidating SPS support activities within Government.Together with the consolidation of the production and marketing of export commodities it is important toseriously consider consolidating GoN efforts to address SPS issues. There are overlapping interests betweenall the SPS contact points for all the commodities examined with the potential for dispersed and uncoordinatedefforts on the part of the GoN. There is, thus, a strong case to be made for revisiting the FAO proposal madeto Nepal for consolidating the relevant portions of the DFTQC, PPD, DoLA, and the Biosafety Contact Point atthe MoFSC into a Biosecurity Agency. Therefore, a revisiting of progress at the DoLS (a second PVS audit tomeasure progress since the earlier benchmarking exercise) and PPD (a second PCE) followed by a biosecurityreview is strongly recommended.Issue 2: Finalize Legislative Reviews.There is an urgent need to revisit the Pesticides Act of 1991, together with the Pesticides Rules 2050 (1994)to ensure that all the crop protection remedies already in place under this Act comply with the most stringentMRLs of Nepal’s trading partners. The DoLS needs to engage with the OIE to help review animal healthlegislation. Although not urgent from a trade perspective, thought must be given to policy and possiblelegislation on bees as this will have to be addressed at some point in the future.Issue 3: Develop a clear policy on TPC.In a sense the technical issues in this instance are clear. The requirements for TCP are market-driven andNepal’s exporters must, in essence, fall in line with the requirements of their customers. By extension theGoN must, in turn, support needs of exporters. Support for TCP must be sustainable, i.e. there must be amarket-led demand for it, and supporting services (notably food testing laboratories) must be based on a clearbusiness plan and needs; otherwise, they risk becoming white elephants. The issue is crucial in terms of longtermsupport for SPS-sensitive exports (Table 8.4). A possible approach to TCP is discussed in greater detailin Appendix 4: Good Agricultural Practices, Food Safety and Quality Management Systems in the Context ofThird Party Certification of Nepalese Food Exports.Issue 4: Develop an enabling environment for food production and processing.The current public health environment in Nepal needs attention. Problems include access to clean air andpotable water and treatment/disposal of water and solid waste. While not directly an SPS concern, it mustbe noted that one of the aims of the SPS Agreement is the worldwide dissemination of common standardsof public health. Furthermore, and more pertinent, is the significant handicap imposed on businesses andsmallholders that have to develop in-house systems and infrastructure to provide what in many other countriesis a public good.NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT205