With US President Donald Trump imposing high customs duties on goods from 185 countries, while the world economy is in turmoil, it is seen that Nepal can get a comparative advantage. Experts in international trade have said that there is an opportunity to benefit because Nepal is charged less customs duty compared to neighboring countries like India, Bangladesh, and China. However, they suggest the government to take an immediate diplomatic initiative for this.

Whatever goods Sri Lanka, India, China, Bangladesh etc. are exporting to America, Nepal is exporting the same goods even if the quantity is small. Now, when exporting to America, there will be a lot of customs duty on the goods of that country, while only 10 percent customs duty has been set for Nepal. Former Commerce Secretary Purushottam Ojha says that when America imposes higher customs duties on countries like India, China, Bangladesh, and Cambodia, it will be easier for Nepalese goods to compete.

The Trump administration has imposed 54% tariffs on Chinese products, 49% on Cambodian products, 44% on Sri Lankan products, and 37% on Bangladeshi products. Similarly, Indonesia has been charged 32 percent, Vietnam 46 percent, Pakistan 29 percent and India 26 percent. 

Poshraj Pandey, an expert in international trade affairs, says that market access will be easier for Nepal when customs rates are different. "It indirectly makes indigenous products competitive. But to increase exports, production capacity should be increased," he says, "For that, investment should be expanded. Its future also depends on the policy decided by the US. If we increase our exports, America can raise the tariff again.' 

According to the data of the customs department, America is the country that exports the most from Nepal after India. In the financial year 080/81, products worth 17 billion 31 crores were exported from Nepal to America. In that year, carpets worth 6.38 billion rupees, churpi worth 2.76 billion rupees and ready-made garments worth about 2 billion rupees were exported to America. Up to February of the current financial year, exports worth 11.37 billion have been made. 

Currently, the US has set zero customs duty on 77 items for Nepal. A Comprehensive Trade and Investment Agreement (TIFA) was signed between Nepal and the US in May 2068 to expand trade, investment and technical cooperation and strengthen economic relations between the two countries. After the earthquake of 2072, the United States has given duty-free facilities to Nepal on 77 items under the 'Harmonized Tariff Schedule'. Such facilities are available in handicrafts, shawls, travel materials etc. But the export of these goods in America has not increased. According to the data of Trade and Export Promotion Center, exports of 2 billion 96 million in 5 years to 77 items with zero duty. 

According to former Commerce Joint Secretary Ravi Sainju, 78 items worth Rs 78 crore were exported in 2018. 52 crores in 2019 and only 31 crores in 2020. Similarly, 64 crores were exported in 2021 and 71 crores in 2022. "The export of the facilitated products should have been extensive, but we could not increase quality production, we could not take advantage of the facilities. Now these items also incur customs duties, said Sainju. 

America's facility is in the production of small and medium entrepreneurs. But former assistant secretary Sainju says that because of the possibility of questioning the quality of production in small quantities, exports have not increased. The difference in customs duty has also brought an opportunity. There is a lot of potential if we can increase the quality of production,' he said, 'It is necessary to create an environment for production and export together with the government and the private sector.'

77 The United States used to levy customs duties on Nepali products other than goods. According to the Readymade Garments Association, before readymade garments, the customs duty was up to 18% on cotton garments and 25% on polyester garments. It is not yet clear whether the customs duty will be maintained at 10 percent or will have to be paid at the same rate as before. According to the association, ready-made garments are exported from Nepal worth 7 billion annually, of which 37 percent is exported to America. 

Nepal has to depend on neighboring countries for raw materials for most of the products it exports. "If the government provides some facilities for the import of raw materials, exports to the US can be increased," said former assistant secretary Sainju, "but the policy of the US is not clear." Bangladesh has taken the lead to discuss with America.

Executive Director of Trade and Export Promotion Center Sharad Vikram Rana has said that it is necessary to change the government policy in order to make use of the opportunity to export to America. "Customs fees are very different between the countries that Nepal competes with. This shows the huge potential of exports," he said. "Government should come up with a policy to encourage the morale of the export sector. There should be facilitation in importing raw materials, simplification of credit, and support in infrastructure.

Federation of Industry and Commerce President Chandra Dhakal said that there is a good opportunity for Nepal. Our products compete with Bangladesh, Cambodia, India and China. If Trump imposes high customs duty, we have some benefit," he said. "If this policy is stable, it will benefit Nepal's exports." Bhimkumar Giri, Secretary General of Readymade Garments Association, said that after high customs duty is imposed on goods from other countries, it will be easier for Nepali products to compete. "Due to customs, Nepalese goods used to be 27 percent more expensive in the international market. Nepalese businessmen can benefit a lot after America increases the tariffs for other countries. Now we are hopeful that exports will increase," he said, "but 60 countries are lobbying to reduce tariffs. Nepal government also had to do marketing.'