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 164th largest goods trading partner with $110 million in total (two way) goods trade during 2013. Goods exports totaled $33 million; Goods imports totaled $78 million. The U.S. goods trade deficit with Nepal was $45 million in 2013.
Nepal was the United States' 178th largest goods export market in 2013.
U.S. goods exports to Nepal in 2012 were $33 million, down 11.6% ($3 million) from 2012.
The top export categories (2-digit HS) in 2013 were: Optic and Medical Instruments ($5 million), Aircraft (parts) ($4 million), Special Other (low value shipments) ($3 million), Manmade Staple Fibers ($3 million), and Perfumery, Cosmetics ($3 million).
U.S. exports of agricultural products to Nepal totaled $2 million in 2013.
Nepal was the United States' 125th largest supplier of goods imports in 2013.
U.S. goods imports from Nepal totaled $78 million in 2013, a 6.9% decrease ($6 million) from 2012.
The five largest import categories in 2013 were: Textile Floor Coverings ($35 million), Woven Apparel ($10 million), Art and Antiques ($6 million), Knit Apparel ($5 million), and Leather ($3 million).
U.S. imports of agricultural products from Nepal totaled $3 million in 2013.
The U.S. goods trade deficit with Nepal was $45 million in 2013, a 3.2% decrease ($2 million) over 2012.
U.S. foreign direct investment (FDI) in Nepal (stock) was $5 million in 2012 (latest data available), up 25.0% from 2011.
There is no information on the distribution of U.S. FDI in Nepal.
Nepal FDI in the United States (stock) was not available in 2012.
*NOTE: No services trade data with Nepal is available.