Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S20101.6 Attractive Markets and Market AccessThe detailed analyses presented in Chapter 2 include an identification of the ten most attractive marketsfor the 19 export potentials. The most attractive markets for goods exports are identified on the basis of acomposite index, including: The size of the importing market for each good or service The rate of import growth in individual markets Ad valorem tariffs imposed on Nepalese exporters in individual markets The tariff advantage or disadvantage between Nepalese exporters and their top five competitors inthose markets.The most attractive markets for services exports are identified on the basis of more limited data with acomposite index, including (in the best case): The size of the importing market The rate of growth of the individual markets Some measure of market openness whenever availableThe findings of this analysis for the twelve goods export potentials and four of the seven services exportpotentials are summarized in table 1.10 (see additional detail in Appendix 2). The table is in two parts. Part1--‘top 10 attractive markets by region’ (top 20 for labour services)—shows the growing importance of ‘new’markets, especially from the Middle East and Gulf regions as well as the South Asian and South-East and EastAsian regions, in terms of agro-food potential exports (half of the most attractive markets) and service exports(three-fifths of the most attractive markets). Traditional ‘northern developed markets’ remain primary exportdestinations for many of the craft and industrial goods export potential (three-quarters of the most attractivemarkets). Part 2--‘tariff advantage’–applies to goods export only and shows that, in the great majority (87.5per cent) of cases, Nepalese goods exporters do not benefit from a significant tariff advantage against theirdirect competitors. This is so either because they are competing with exporters from other LDCs that benefitfrom similar tariff advantages or simply because tariffs are very low as a result of rounds of multilateral tradenegotiations. This confirms that the competitive advantage of Nepalese exporters must increasingly be basedon their supply capacity (costs, productivity, and quality) and their ability to meet standards and address otherNTBs.Table 1.11 identifies the top ten potentially most attractive markets for the Nepalese export potential sectorsreviewed in table 1.11. More detailed data for each sector is presented in Chapter 2 under each sectorprofile.14NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT