Cambodia and Nepal

on way to WTO

Cambodia Finishes WTO Entry Talks

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fter eight and a half year bid to secure membership, the heavily apparel export dependent and poor Southeast Asian nation, Cambodia, finally reached an agreement recently in Geneva to enter the World Trade Organization (WTO).

 In a time of harsh and fierce global competition, the survival of a country depends very much on the ability to capture the right opportunities and at the right time. Under the agreed entry terms, textiles and apparel import quotas that other WTO members apply on imports from Cambodia will have growth rates as provided for in the WTO Agreement on Textiles and Clothing (ATC) and shall be applied from the date of Cambodia’s accession. These growth rates would end when the ATC terminates in 2005. Under the terms of a bilaterial Cambodia-U.S. agreement, the U.S. had placed quantitative restrictions on 13 categories of apparel from Cambodia. In 2001, Cambodia’s apparel exports totaled $1.1 billion and accounted for a 72％ share of its total merchandise exports. Cambodian exports to the U.S. in 2001 reached $987 million, up 15％ from the year before and accounting for a 1.5％ share of U.S. apparel imports.

WTO Ministerial Conference approves Nepal’s membership

The WTO’s Ministerial Conference on 11 September 2003 approved by consensus the text of the Protocol for Nepal’s entry into the WTO. Nepal will be the second least-developed country (LDC) to joint the WTO, after Cambodia, through the full working party process.

 

Nepal still has to ratify the agreed terms and inform the WTO. Thirty days after that it will become a member. When these steps are complete, Nepal and Cambodia will bring the WTO’s membership to 148. Nepal applied to join the WTO in May 1989.  

Nepal has a population of 23 million and a per capita income of US$240. Agriculture is the main source of income and employment, and accounts for 41% of GDP and more than 80% of employment. Tourism is one of the most import services sectors and contributes about 12% of the total foreign exchange and 3.8% of GDP. Nepal has been increasingly developing hydroelectric energy resources. India is the most important trading partner of Nepal.

Nepal's clothing exports to the United States fell 18% in September to $8.5 million from $10.5m in the year-ago period. Exports to the US generates 80% of its total overseas apparel revenue. Prior to August's  1%  slip, exports had risen for 12 months in a row. The industry employs around 100,000 people.

Back to Index of October 2003