How and Why DPs Should Support Implementation of NTIS 2010? Chandra Ghimire Joint Secretary Ministry...
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Transcript of How and Why DPs Should Support Implementation of NTIS 2010? Chandra Ghimire Joint Secretary Ministry...
How and Why DPs Should Support Implementation of NTIS 2010?
Chandra GhimireJoint Secretary
Ministry of Commerce & [email protected]
Presented toGoN-Donor Consultation Meeting on EIF/NTIS Implementation
Kathmandu, Nepal2010 Nov 1
Outline of the Presentation
• Objectives of today's Meeting• Why Trade is a Must?• Briefing on EIF & Nepal• NTIS 2010 in Nepal• Mainstreaming of Trade in Nepal• Implementation Approach uphold• Implementation Mechanism Placed• Commitment expected from DPs to implement
NTIS
Objectives of Today’s Meeting
• Briefing DPs about EIF and NTIS 2010• Briefing DPs about implementation status of EIF &
NTIS in Nepal• Make sure DPs mainstream trade by including
trade in their Nepal assistance strategy• Obtaining DPs’ support commitments for NTIS
implementation• Selection of Donor Facilitator for new phase
Why TRADE is a must ? • "Inclusive Growth" is a pre-requisite for alleviating poverty, • Trade is an engine of "Inclusive Growth",• Export is a triggering factor for Trade, since:
– Nepal has comparative & competitive advantages in certain goods & services,
– Nepal's own internal market small but huge markets available in its two giant neighbors with miracle growth
– Value addition seems in certain goods to be very high– Market access available through multilateral, regional and bilateral
arrangements– Being a LDC special privilege i.e. DF (zero-tariff in EC, Australia, Canada,
HK, India, China, Japan, USA etc.)
Growing Trend of Trade DeficitsTrade Deficit of Nepal
-81.9 -136.9-178.5
-222.4
-315.5-400
-300
-200
-100
0
100
200
300
400
500
Fiscal Year
NR
s. i
n b
illio
n
Exports Import Trade Balance
Nepal became WTO Member
What Approach the Best Serving?
• By increasing supply side capacity of the country
• By promoting the goods & services with high value addition
• By focusing on 'inclusive growth', i.e. employment & income, supporting marginalized areas & groups
NTIS 2010 in effect to serve these approaches
• Poor capacity to capitalize the opportunity of WTO accession and various RTAs/FTAs;
• Poor mainstreaming of trade;• Steadily growing trade deficit over last FYs;• Poor implementation of DTIS 2004 and needs of
updating it as per changed contexts;• Challenge of 'Inclusive Growth‘ as TYP for poverty
alleviation & peace dividend;• Economic agenda in shadow in the current
transition;
Backdrop of NTIS 2010
• National trade strategy to enhance 'supply side capacity' for Nepal's space in global market;
• Prioritized strategy launched by PM himself on 24 June 2010
• An outcome of analysis & consultation with: National stakeholders i.e. Government agencies, business
organizations FNCCI, CNI, CoC, product associations, national International experts, DPs But led by GoN
What is NTIS?
• Field surveys, National and ITC data based analysis and consultation undertaken
• China and India visited by experts;• 19 goods & services identified as priority items;• 10 potential destination markets identified;• Plus 5 other goods suggested;• 3-5 years period for implementation;• Engaging of multiple agencies, i.e., GoN's 17
ministries/agencies as well as business organizations
Salient Features of NTIS 2010
• Having 4 strategies:
• Strengthening trade negotiation
• Strengthening NTB related domestic capacity
• Strengthening supply capacity of "inclusive exports"
• Strengthening capacity for managing AfT & TRTAs • Having 87 cross cutting actions and 171 product/service
specific & total 268 actions to be implemented
• Continued consultation process
• National stakeholders: Government agencies and departments, private sector organizations etc.
• Development partners (GTZ, DFID, USAID, Japan, ADB, World Bank, Finland etc.)
Salient Features of NTIS 2010
19 Priority Export Potentials
Agro-Food
1 Cardamom
2 Ginger
3 Honey
4 Lentils
5 Tea
6 Noodles7 Medicinal & Essential
Oils
Craft and Industrial Goods
8 Handmade Paper
9 Silver Jewelry
10 Iron and Steel
11 Pashmina
12 Wool Products
What the Goods & Services to Export?
Services
13 Tourism
14 Labor Services
15 IT & BPO Services
16 Health Services
17 Education
18 Engineering
19 Hydro-electricity
Others Potential Exports
20Transit Trade Services
21 Sugar
22 Cement
23 Dairy Products
24 Transformers
What the Goods & Services to Export?
Export Potential and Socio-Economic Impact of 19 Products and Services
# Sector
Nepali exports,
2008 (US$ 1,000)
Index 1: Export
performance
Index 2: World market
conditions
Index 3: Domestic
supply conditions
Overall export potential
Socio-economic
impact
Agro-Food
1 Large cardamom 21,329 high low high high medium2 Ginger 8,130 medium low medium medium medium3 Honey 500 low medium medium medium medium4 Lentils 22,258 medium high high high medium5 Tea 16,805 high low medium medium high6 Instant noodles 10,390 high medium high high low7 Medicinal herbs / oils 11,000 low medium high medium high Craft and Industrial Goods
8 Handmade paper 4,000 low low high low high9 Silver jewelry 9,519 low high medium medium medium
10 Iron & steel products 149,394 high high high high medium11 Pashmina products 22,074 medium medium high medium medium12 Wool products 16,450 medium high medium medium high
Services
13 Tourism 352,000 high high high high high14 Labor services 2,448,000 high high medium high high15 IT & BPO services 10,000 medium medium medium medium medium16 Health services n/a low medium low low low17 Education services 10,000 medium low low low low18 Engineering services n/a low medium medium medium low19 Hydro-electricity 0 low high medium medium medium
EIF Global Implementation Mechanism– At Global Level:
• EIF Secretariat at WTO Geneva• Nepal represents LDCs in the EIF Board since 2010
– At National Level:• National Steering Committee (NSC)• Focal Point (FP)• National Implementation Unit (NIU)• TWGs as Extended NIUs in 5 ministries • Donor facilitator (DF)
EIF Implementation Arrangement in Nepal
NSC
Focal Point Technical Committees (TCs)
Technical Committees (TC)
1. Agriculture, agro-industry, NTFP, and SPS 2. Private Sector Development (Manufacturing, SMEs, SEZ/EPZ and TBT) 3. Legislation and Intellectual Property Rights (IPRs)4. Services and taxation5. Cross-Cutting Issues and Trade-related Infrastructure Development Technical Sub-Committees (TSC)
To be constituted by TC as required.
NIU
Donor Facilitator
TSCs
NECTRADE 2010
Implementation Approach of NTIS• NSC: as the APEX BODY for overall guidance & inter agency
coordination• Focal Point: as LEADING the initiatives of MoCS• NIU at MoCS: as NTIS EXECUTING, RESOURCE MOBILIZING & FACILITATING
• 5 Extended NIUs (TWGs): as FORMULATING & IMPLEMENTING projects• Sectoral ministries/agencies: As IMPLEMENTING PARTNERS• Business associations: as STAKEHOLDERS involved in the NSC &
various implementation activities• M&E mechanism:
– Via existing national M&E system– Objective based M&E indicators yet to develop
Implementation Status• Tier 1 Project placed in to address capacity issue of
MoCS and relevant ministries/agencies
• Developing of project proposals underway for Tier 2
• TORs for NIU/Extended NIUs & their staffing done
(govt officials appointed for NIU/Extended NIUs)
• Consultation workshops/meeting held with
concerned stakeholders
Additional Strength Acquired
• Matching budget from MoF• National driven: GoN at steering seat • NIU rich with vibrant staff team• Inter agency coordination through NSC & NPC• M&E as per national M&E mechanism• Accountability as per its national system• Implementing role of concerned ministries well
respected
Mainstreaming of Trade in Nepal• 2nd TYP has included TRADE as one of its 6 pillars• One of the focuses in the coming budget: addressing
trade deficit • A clear budget line for NTIS implementation being
considered• Mainstreaming of trade in sectoral plans, e.g., underway
the process of Agriculture • To intensify the mainstreaming, senior officials of
concerned ministries are being re-orientated
Q is What about mainstreaming of trade in DPs' priority?
What Commitments from DPs required?
1. DPs' engagement in Nepal’s trade developmentA. Those who already involved in the formulation:
– Urged strong & continued commitments for the NTIS implementation
B. Those who not yet:– Urged to include trade in their Nepal Assistance
Strategy and support the NTIS implementation
What Commitments from DPs required?2. What we need?
– TRTAs– Aid for Trade– Ideas & experiences sharing– Coordinated delivery of the inputs from DPs
3. Why we need that supports?– DCs are committed in global forums to provide
LDCs with AfT & TRTAs– Nepal in its politico-socio-economic transformation
What Commitments from DPs required?4. DPs support to meet resource gap, since:
a) Nepal already mainstreamed trade into its national development agenda
b) The NTIS is in place and GoN highly committed priority-wise and resource-wise to implement it
c) But resource-wise Nepal alone is unable to afford to implement it
5. Selection of DF to support the process of the NTIS implementation
Functions of the DF
1. To Assist GoN/MoCs and coordinate donor responses to the NTIS Action Matrix,
2. To harmonize required interventions, including exploring out funding for NTIS implementation,
3. To support the NIU and the FP, including formulation and appraisal of Tier 2 projects,
4. To facilitate GoN in linking with DPs,
Functions of the DF5. To provide DPs with regular updates on the progress
on the EIF and NTIS implementation,
6. To assist NIU in creating knowledge and understanding on the EIF & NTIS process,
7. To support GoN in strengthening institutional mechanism arranged for EIF/NTIS implementation, i.e. NSC, FP, NIU and TWGs,
8. To assist NIU in managing ODA as for effective implementation of the EIF/NTIS,
Suggested Criteria for DF• The DF should be actively engaged in the field of
TRADE,
• The DF should sufficiently allocate financial resources & HRs to undertake the role,
• The DF should be resident in the country,
• As the functions grow, a LEAD DF and additional DFs (e.g. strategy wise) may be required,
• Such additional DFs could be arranged upon joint consultation with GoN and local DPs,