Nepal

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 160th largest goods trading partner with $113 million in total (two way) goods trade during 2008. Goods exports totaled $29 million; Goods imports totaled $85 million. The U.S. goods trade deficit with Nepal was $56 million in 2008.

Exports

Nepal was the United States' 181st largest goods export market in 2008.

U.S. goods exports to Nepal in 2008 were $29 million, down 1.5% ($4 thousand) from 2007.

The top export categories (2-digit HS) in 2008 were: Aircraft (parts) ($5 million), Electrical Machinery ($4 million), Machinery ($3 million), Manmade Staple Fibers ($3 million), and Optic and Medical Instruments ($3 million).

U.S. exports of agricultural products to Nepal totaled $3 million in 2008.

Imports

Nepal was the United States' 130th largest supplier of goods imports in 2008.

U.S. goods imports from Nepal totaled $85 million in 2008, a 5.6% decrease ($5 million) from 2007.

The five largest import categories in 2008 were: Textile Floor Coverings ($46 million), Woven Apparel ($14 million), Knit Apparel ($5 million), Precious Stones ($3 million), and Art and Antiques ($3 million).

U.S. imports of agricultural products from Nepal totaled $935 thousand in 2008.

Trade Balance

The U.S. goods trade deficit with Nepal was $56 million in 2008, a 7.6% decrease ($5 million) over 2007.

Investment

U.S. foreign direct investment (FDI) in Nepal (stock) was $1 million in 2007 (latest data available), the same as in 2006.