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Nepal Conducts General Trade Policy Review in November 2025

Nepal held policy review meetings in November 2025 to assess trade policy effectiveness and recommend improvements across all sectors including agricultural products, textiles, processed foods, pharmaceuticals, and manufactured goods

NEPAL – GENERAL TRADE POLICY

Nepal Undergoes WTO Trade Policy Review

Officials assessed trade rules across all major sectors in November 2025.

17 & 19 Nov 2025 Review meeting dates
WT/TPR/M/478 Official document symbol

What happened

WTO review held to assess Nepal’s trade policy effectiveness.

Policy assessed across agriculture, textiles, food, pharma and manufactured goods.

No new tariffs or restrictions were introduced during the review.

Who it affects

Nepalese policymakers will receive future recommendations from the WTO.

Exporters in all sectors may see policy adjustments based on the review’s findings.

Key dates

17 Nov 2025 — first review meeting held.
19 Nov 2025 — second review meeting held.
Nepal — WTO General Trade Policy Review

Compliance Analysis: Nepal’s Trade Policy Reforms and Sectoral Compliance Framework (2025)

Direct Answer

Nepal’s November 2025 Trade Policy Review (TPR) highlights a multi-sectoral compliance framework underpinned by the Trade Policy, 2025, the Strategic Plan of the Commerce Sector for Smooth Transition to a Developing Country, and the Nepal Trade Integration Strategy (NTIS) 2023–2028. These instruments mandate policy, institutional, and infrastructural reforms to enhance export competitiveness, diversify trade, and ensure regulatory alignment with Nepal’s Least Developed Country (LDC) graduation in November 2026. Key sectors—agriculture, textiles, processed foods, pharmaceuticals, and manufactured goods—are governed by sector-specific strategies (e.g., Agriculture Development Strategy 2015–2035) and cross-cutting policies (e.g., National Start-up Policy, 2024; Industrial Policy) to address trade deficits, productivity gaps, and market access barriers1, 2.

Regulation Analysis

1. Core Trade Policy Instruments

Nepal’s compliance framework relies on the following primary regulations, each targeting distinct trade challenges:

RegulationKey RequirementDeadline/ThresholdAuthority
Trade Policy, 2025– Enhances market access for goods/services in bilateral/regional markets1.
– Prioritizes export diversification (agri-food, specialized manufacturing) and import management1.
– Aligns with LDC graduation by negotiating extended trade preferences post-20261.		Adopted 2025; ongoing implementationMinistry of Industry, Commerce and Supplies (MoICS)
Strategic Plan of the Commerce Sector– Implements policy, institutional, infrastructural, and structural reforms to boost production, productivity, and quality1.
– Focuses on supply chain efficiency and cross-border trade facilitation1.		FY2024/25–FY2028/29MoICS; Department of Commerce
Nepal Trade Integration Strategy (NTIS) 2023–2028– Identifies 32 exportable goods and 5 service sectors (e.g., agri-food, specialized manufacturing)1.
– Targets trade deficit reduction via domestic productivity enhancement1.		2023–2028MoICS; Trade and Export Promotion Centre (TEPC)
National Action Plan for Trade Deficit Reduction, 2022– Aims to narrow trade gaps through export competitiveness and import substitution1.2022–ongoingMoICS; National Planning Commission (NPC)
Agriculture Development Strategy (ADS) 2015–2035– Targets self-sufficiency and net exporter status in livestock2.
– Mandates gender-inclusive policies: 27% of agri-businesses and 23.8% of land owned by women (2025)2.
– Links to Women, Business, and Law Score (improved from 49.4 in 2015 to 80.6 in 2023)2.		2015–2035Ministry of Agriculture and Livestock Development (MoALD)
National Start-up Policy, 2024– Builds entrepreneurial ecosystems to support innovation-driven growth in trade sectors1.2024–ongoingMoICS; Start-up Board Nepal

2. Sector-Specific Compliance Requirements

A. Agriculture, Forestry, and Fisheries

  • Trade Competitiveness:
    • ADS 2015–2035 mandates self-sufficiency in livestock and export-oriented production2.
    • Financial support schemes (e.g., agriculture/livestock insurance, loans) are coordinated by MoALD via a Coordination Committee chaired by the Secretary, with annual reviews2.
    • Climate resilience: Policies address natural disasters (floods, landslides) disrupting production2.
  • Gender Inclusion:
    • 23.8% of agricultural land and 27% of agri-businesses are women-owned (2025)2.
    • Policy amendments (2015–2023) improved women’s access to mobility, pay, entrepreneurship, and assets2.

B. Textiles and Manufactured Goods

  • Export Concentration:
    • Textiles accounted for 33.5% of total exports in FY2023/24, followed by base metals, prepared foods, and vegetable products1.
    • NTIS 2023–2028 targets diversification beyond textiles to reduce export concentration risks1.
  • Infrastructure Reforms:
    • Special Economic Zones (SEZs) and Export Processing Zones (EPZs) are being expanded to improve competitiveness1.
    • Trade-related infrastructure (grading stations, quality labs, quarantine systems) is being modernized1.

C. Processed Foods and Pharmaceuticals

  • Trade Fluctuations:
    • Processed foods are a key export category, but imports of mineral products (21.9%) and machinery (18.2%) dominate1.
    • Policy interventions (e.g., Agriculture Development Strategy, NTIS) aim to substitute imports (e.g., wheat, crude oils) with domestic production1.
  • Regulatory Alignment:
    • E-commerce Act, 2025 and Customs Tariff Act, 2024 streamline cross-border trade for processed goods1.
    • Anti-dumping, countervailing, and safeguard measures were enacted for the first time to protect domestic industries1.

D. Foreign Direct Investment (FDI) and Trade

  • Trade Policy, 2025 impacts FDI by:
    • Improving export infrastructure (SEZs, EPZs)1.
    • Strengthening supply chains and trade negotiation capacity1.
    • Inter-policy coherence with investment-related policies (e.g., Industrial Policy)1.
  • Sixteenth Periodic Plan (FY2024/25–FY2028/29):
    • Prioritizes green investments and sustainable development to attract FDI1.

3. LDC Graduation and WTO Compliance

  • Post-Graduation Strategy:
    • Nepal is negotiating extended trade preferences (e.g., unilateral trade preferences) through the LDC group at the WTO to mitigate loss of LDC-specific flexibilities post-November 20261.
    • Bilateral/regional trade agreements are being expanded to secure market access1.
  • WTO Commitments:
    • Nepal remains committed to the multilateral trading system, serving as LDC focal point on key issues1.
    • Trade Policy Reviews (TPRs) are used to align domestic policies with WTO rules1.

4. Monitoring and Enforcement Mechanisms

  • Annual Reviews:
    • Coordination Committees (e.g., MoALD’s Agriculture/Livestock schemes) conduct annual impact assessments2.
    • Programme Monitoring and Evaluation Frameworks are integrated into budgetary processes2.
  • Data-Driven Adjustments:
    • Trade-to-GDP ratio (declined from 49% in FY2018/19 to 41% in FY2023/24) informs policy recalibration1.
    • Export concentration indices guide diversification efforts1.

Summary Answer

Nepal’s 2025 trade policy framework is anchored in the Trade Policy, 2025, Strategic Plan of the Commerce Sector, and NTIS 2023–2028, which collectively mandate sectoral reforms to enhance export competitiveness, reduce trade deficits, and facilitate LDC graduation1. Key sectors—agriculture (ADS 2015–2035), textiles (NTIS 2023–2028), processed foods (Customs Tariff Act, 2024), and manufactured goods (Industrial Policy)—are governed by targeted strategies addressing infrastructure gaps, gender inclusion (27% women-owned agri-businesses), and supply chain efficiency1, 2. FDI is supported through SEZs, EPZs, and inter-policy coherence with investment regulations1. Post-2026, Nepal is negotiating extended trade preferences via the WTO LDC group to sustain market access1. Compliance is enforced through annual reviews (e.g., MoALD’s Coordination Committee) and data-driven adjustments (e.g., trade-to-GDP ratio monitoring)1, 2.

Sources

  1. ↩ Trade Policy Review Body – Trade policy review – Nepal – Minutes of the meeting – 17 and 19 November 2025 – Chairperson : H.E. Mr Kairat Torebayev — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=Q:/WT/TPR/M478A1.pdf&Open=True
  2. ↩ Trade Policy Review Body – Trade policy review – Nepal – Minutes of the meeting – 17 and 19 November 2025 – Chairperson : H.E. Mr Kairat Torebayev — SS / directdoc https://docs.wto.org/dol2fe/Pages/SS/directdoc.aspx?filename=Q:/WT/TPR/M478.pdf&Open=True
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