Nepal became a Federal Democratic Republic in 2008. In September 2008, the Government of Nepal (GON) announced the main priorities for the country: bringing the peace process to a logical conclusion, writing a new constitution, and accelerating the pace of economic development. Last year, USTR officials met with a delegation from the GON and discussed a wide range of trade and investment issues.
In 2008, USTR concluded the GSP Child Labor Review for Nepal as required under the GSP program. During the course of the review, USTR found that child labor, including bonded child labor, is being used in the handmade carpet industry in Nepal. However, the review also recognized that the Government of Nepal is taking steps to combat the occurrence of child labor, including bonded child labor. As a result of the progress Nepal is making, the GSP eligibility of the carpet products under review will remain unchanged at this time. As specified in the notice published in the Federal Register on January 18, 2008, the review will be repeated at three-year intervals. The U.S. Government has made several recommendations to the Government of Nepal on mitigating child labor violations.
U.S.-Nepal Trade Facts
Nepal is currently our 165th largest goods trading partner with $118 million in total (two way) goods trade during 2011. Goods exports totaled $40 million; Goods imports totaled $78 million. The U.S. goods trade deficit with Nepal was $37 million in 2011.
Nepal was the United States' 176th largest goods export market in 2011.
U.S. goods exports to Nepal in 2011 were $40 million, up 42.6% ($12 million) from 2010.
The top export categories (2-digit HS) in 2011 were: Aircraft (parts) ($6 million), Cereals (rice) ($5 million), Optic and Medical Instruments ($4 million), Special Other (low value shipments) ($4 million), and Machinery ($4 million).
U.S. exports of agricultural products to Nepal totaled $10 million in 2011.
Nepal was the United States' 132nd largest supplier of goods imports in 2011.
U.S. goods imports from Nepal totaled $78 million in 2011, a 28.0% increase ($17 million) from 2010.
The five largest import categories in 2011 were: Textile Floor Coverings ($35 million), Woven Apparel ($10 million), Headgear ($6 million), Knit Apparel ($4 million), and Leather ($4 million).
U.S. imports of agricultural products from Nepal totaled $1 million in 2011.
The U.S. goods trade deficit with Nepal was $37 million in 2011, a 15.2% increase ($5 million) over 2010.
U.S. foreign direct investment (FDI) in Nepal (stock) was $1 million in 2010 (latest data available), the same as in 2009.
There is no information on the distribution of U.S. FDI in Nepal.
Nepal FDI in the United States (stock) was not available in 2010.
*NOTE: No services trade data with Nepal is available.