Nepal-Us Trade: Exports and its Determinants after Nepal's Accession to the WTO

Abstract

This study attempts to evaluate exports of Nepal to the United States after Nepal's accession to the WTO. Nepal-US trade is crucial from Nepal's view point because the US is still the second largest export destination of Nepal. Thus, it is pertinent to study the exports of Nepal to the US which has declined tremendously after Nepal accessed to the WTO. Empirical results show that exports to the US is affected due to policy variables rather than real factors. Expiration of MFA is key element that reduced Nepal's exports to the US.GSP also influenced Nepal's exports to the US tradenominally however, the impact is negative.Consequently,for exhasal so influenced the exports to the US but not as expiration of MFA. Yet uncertain, the government of Nepal is lobbying to include textiles and apparel products into GSP privilege to the US market to accelerate Nepal's exports again. Since, there is no significant increase in exports to the US, conclusion of Trade and Investment Framework Agreement will only be the remedy to increase it.