Trade Policymaking in a Land-locked Developing Country: The WTO Review of Nepal

Kishor Sharma

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Abstract

Sandwiched between India in the south, east and west and the People's Republic of China in the north, Nepal is a small landlocked developing country. Its trade policy autonomy is constrained by land-lockedness and open border with India. Despite opening up the economy, it has not fully benefited from openness, perhaps partly due to poor governance and partly due to transit and customs-related problems. Although these are crucial issues for trade competitive, The Trade Policy Review of Nepal 2012 (TPRN-2012) is either very polite or lacks a comprehensive analysis on most of these. Since transit-related costs faced by landlocked developing countries can be substantial, just evaluating the progress made in liberalising tariffs and nontariff barriers can provide a distorted picture of the overall business climate. The future WTO review reports on these countries should have a separate section on transit-related issues to contribute to policy debate on the problems of landlocked developing countries. Despite this, the publication of TPRN-2012 is very timely given the emphasis placed in the current policy debate in the WTO and other international forums on the problems of landlocked developing countries.
Original languageEnglish
Pages (from-to)1335-1349
Number of pages15
JournalWorld Economy
Volume38
Issue number9
DOIs
Publication statusPublished - 2015
Externally publishedYes

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