Although trade policies were modified significantly after the change of government, the country seems keen to open its economy further to foreign trade and develop its exports. In 2020, foreign trade represented 41% of GDP (World Bank, 2022), in relative decline. The average applied tariff rate is 14.2% and companies that export more than 90% of their goods are exempt from customs duties, excise duties, and sales taxes. The country is a member of WTO. However, significant barriers to the development of trade persist, including lack of skilled labour, advanced technology, and geographic accessibility.
Nepal’s exports are led by soybean oil (22.6% of all exports in 2020), nutmeg, mace and cardamon (5.5%) palm oil (5.1%) and tea (3.8%). According to OEC latest data (2022), India is by far the main trading partner with 70% of all exports in 2020 (followed by the USA with 10.3%) and 71.4% of all imports the same year (followed by China with 14.2%).
The Nepalese trade balance is structurally in deficit (USD -12.2 billion in 2019, the widest since 2014). In 2020, exports reached USD 2.49 billion USD while imports reached 9.91 billion USD, resulting in a deficit of 7.42 billion USD (WTO and World Bank, 2022).
Foreign Trade Indicators | 2016 | 2017 | 2018 | 2019 | 2020 |
---|---|---|---|---|---|
Imports of Goods (million USD) | 9,650 | 10,345 | 12,712 | 12,340 | 9,856 |
Exports of Goods (million USD) | 740 | 742 | 786 | 968 | 856 |
Imports of Services (million USD) | 1,250 | 1,591 | 1,774 | 1,687 | 1,074 |
Exports of Services (million USD) | 1,282 | 1,383 | 1,477 | 1,512 | 830 |
Imports of Goods and Services (Annual % Change) | 3 | 28 | 19 | 6 | -15 |
Exports of Goods and Services (Annual % Change) | -17 | 9 | 8 | 6 | -16 |
Trade Balance (million USD) | -8,002 | -9,365 | -11,916 | -11,021 | -8,700 |
Foreign Trade (in % of GDP) | 42 | 45 | 48 | 49 | 41 |
Imports of Goods and Services (in % of GDP) | 34 | 37 | 41 | 41 | 34 |
Exports of Goods and Services (in % of GDP) | 8 | 8 | 8 | 8 | 7 |
Source: WTO – World Trade Organisation ; World Bank - Latest available data.
Main Customers (% of Exports) |
2019 |
---|---|
India | 68.7% |
United States | 10.3% |
Germany | 3.0% |
Turkey | 2.5% |
United Kingdom | 2.3% |
China | 1.9% |
Bangladesh | 1.3% |
France | 1.3% |
Japan | 1.0% |
Italy | 0.9% |
Canada | 0.8% |
Australia | 0.7% |
Switzerland | 0.4% |
Netherlands | 0.4% |
Vietnam | 0.3% |
United Arab Emirates | 0.3% |
Denmark | 0.3% |
Hong Kong SAR, China | 0.3% |
Spain | 0.3% |
South Korea | 0.3% |
See More Countries | 13.2% |
Main Suppliers (% of Imports) |
2019 |
---|---|
India | 63.1% |
China | 15.7% |
Indonesia | 2.1% |
United Arab Emirates | 2.1% |
United States | 1.3% |
Canada | 1.0% |
Thailand | 0.9% |
Malaysia | 0.8% |
South Africa | 0.8% |
Switzerland | 0.8% |
Argentina | 0.8% |
Vietnam | 0.7% |
Ukraine | 0.7% |
South Korea | 0.7% |
Saudi Arabia | 0.6% |
France | 0.6% |
Germany | 0.5% |
Japan | 0.5% |
Australia | 0.5% |
Turkey | 0.4% |
See More Countries | 15.7% |
Source: Comtrade, Latest Available Data
Source: Comtrade, Latest Available Data
To go further, check out our service Import Controls and Export Controls
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1.8 bn USD of services exported in 2018 | |
---|---|
36.60% | |
25.79% | |
15.54% | |
13.46% | |
6.15% | |
2.44% |
1.8 bn USD of services imported in 2018 | |
---|---|
46.36% | |
34.67% | |
12.72% | |
3.61% | |
1.66% | |
0.98% |
Source: United Nations Statistics Division, Latest Available Data
List of tariffs and local taxes that apply to your product on our service Customs Duties and Local Taxes
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Latest Update: April 2022
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