Nepal : Canada To Lift Taiffs On Nepalese Garment

To boost its struggling export market Canada is planning to lift tariffs on Nepalese garments and textiles.

Canada currently imposes duty of between 18 and 35 per cent on such imports from Nepal.

The agreement, which takes effect from 2004, was signed recently by Lava Kumar Devkota, secretary in Nepal's commerce ministry, and Canadian Ambassador Peter Sutherland.

The decision was part of an initiative launched last year by Canadian Prime Minister Jean Chretien "to reduce poverty in the world's poorest countries," Sutherland said in a statement.

Nepal's exports to Canada, topped by garments, handicrafts, carpets and pashmina products, were worth 3.5 million US dollars in 2002.

Imports from Canada to Nepal accounted for 3.39 million dollars and included food products, machinery and medical instruments, according to the commerce ministry.

"This arrangement is expected to provide great relief to the Nepalese garment and textile industries as it comes at a time when Nepal's exports recorded a downward trend because of internal and international political developments," said industrialist Shyam Prasad Pokharel.

Nepal has been ravaged by a seven-year Maoist insurgency, although the rebels and government have been observing a ceasefire since January 29 and are holding peace talks.