Nepal’s WTO Trade Policy Review: UK Statement
Source: gov.uk (2025-11-18)

UK statement for Nepal’s World Trade Organization Trade Policy Review. Delivered on 17th and 19th November 2025.

Chair, let me welcome the Nepalese delegation, led by Commerce and Industry Secretary Dr. Ghimire, to its 3rd Trade Policy Review and thank both the government of Nepal and the WTO Secretariat for their Reports. I would also like to convey my appreciation to our discussant, the Ambassador of Japan, whose valuable contributions have deepened our conversation today.

Starting with the bilateral relationship between the UK and Nepal, with over 200 years of diplomatic ties, including a formal Treaty of Friendship, UK-Nepal relations are characterised by partnership and respect for each other’s national interests.

Bilateral trade relations have been modest but significant, trade totalling £271 million in the four quarters to the end of Q1 2025, with the UK primarily importing goods like handicrafts and clothing from Nepal, and exporting machinery, electronics and pharmaceuticals. The UK has remained one of the top development partners of Nepal, bilaterally and through multilateral banks and agencies. Our Development Partnership majors on support to the private sector ecosystem, alongside investment in human capital across health, education, governance and climate resilience.

We note that Nepal has concerns about the implications of moving out of the LDC category. While we recognise this concern, it is a positive sign of Nepal’s economic growth, which trade has been a key part of. More broadly, the UK’s Developing Country Trading Scheme will continue to provide preferential access to Nepal’s exports post-graduation until 2029. We were pleased that members were able to deliver two outcomes ahead of MC13 to support smooth transitions for LDCs, and we recognise the LDC group is hoping for another outcome at MC14.

Furthermore, the UK has been working with Nepal through the Nepal in Business programme to support efforts to grow, attract investments, improve productivity and global competitiveness, which will all support sustainable graduation in Nepal.

The UK is committed to supporting Nepal’s education priorities. Building on recent discussions at the Education World Forum and the British Council’s Going Global Conference, the UK stands ready to help Nepal expand access to high-quality higher education. Through the UK’s regulator, the Quality Assurance Agency (QAA), the UK has an initiative which aims to strengthen Nepal’s Transnational Education sector by developing a future-ready regulatory and quality assurance framework. The goal is to ensure that Transnational Education provision in Nepal is robust, credible and aligned with international standards.

The UK recognises there are challenges in this, such as restrictions on foreign university affiliations and limitations on new course approvals, which continue to hinder the growth of the Transnational Education sector. We are eager to work alongside Nepalese policymakers, regulators and institutions to co-develop solutions that are locally grounded and globally aligned.

The UK commends Nepal’s ambition to promote a low-carbon future, and the use of green energy, particularly green hydrogen, to achieve this goal. The UK is supporting this ambition through the Green Growth Nepal programme that aims to achieve green, resilient and inclusive growth by mobilising international green finance and supporting Nepal’s government to attract and implement climate-resilient investment projects.

While we have welcomed these forward-facing goals and the improvements in the business environment, we believe Nepal can go further to improve and attract international investment. Ensuring streamlined customs processes and institutional dispute settlement mechanisms, simplifying the complex tax structure and removing restrictions on the repatriation of profits, will go a long way to improve investor confidence in Nepal.

In the WTO, Nepal punches above its weight in discourse on global trade. Ambassador Subedi’s skilled chairship of the Committee on Trade and Development last year, and of the Council for Trade in Services this year, demonstrate steady leadership in forward-looking areas in the WTO. In addition, Nepal has been providing valuable contributions to the discussions on development as the focal point for the LDC Group and played an important role in the taskforce on the future of the Enhanced Integrated Framework. We welcome too Nepal’s proactive engagement in the Dispute Settlement Reform negotiations. In Nepal, we always find a constructive, solutions-oriented, and open-minded partner.

The UK recognises Nepal’s efforts to advance trade and gender equality, and promote women’s participation in trade, working collaboratively with the Women Entrepreneurs’ Associations and the private sector. Further, the UK would like to highlight the Nepal Trade Integration Strategy 2023, which centres gender and social inclusion as one of its core values. The UK would welcome hearing more about Nepal’s experience on trade and gender equality at the Informal Working Group on Trade and Gender.

Nepal’s adoption of the Agreement on Fisheries Subsidies, and its ambition to modernise its Intellectual Property regime to align with the TRIPS Agreement also shows its continued commitment to the values of the multilateral trading system. The new Industrial Property Bill will introduce a new Council to oversee the formulation and implementation of IP policies with representatives from the government, civil society, and experts. The UK supports the goal to build a resilient and harmonised intellectual property ecosystem and has been leveraging our expertise to combat piracy and counterfeiting.

We would encourage Nepal to consider broadening its participation in WTO Agreements. Nepal is not currently part of the Agreement on E-Commerce, Investment Facilitation for Development or the Services Domestic Regulation Joint Initiative. We would welcome Nepal joining all of these agreements. We also encourage Nepal to consider joining the Multi-Party Interim Appeal Arbitration Arrangement (MPIA).

In closing, Chair, we would like to thank Nepal for its time and cooperation in this important exercise and for its ongoing efforts with us both bilaterally and here in the WTO.