Report by the WTO Secretariat

Nepal started to liberalize its trade and investment regime, unilaterally, in 1992 and became the first least developed country (LDC) to join the WTO through the full accession process in April 2004. Since then, economic performance has not resulted in the strong development Nepal needs. Key factors impeding higher rates of GDP growth include political instability (due to the transition process embarked upon after the internal conflict of 1996-2006) and supply-side constraints, notably energy shortages, poor infrastructure, and labour strikes. Recognizing the effective role of trade to achieve sustainable and inclusive economic growth, and to establish the conditions to reduce poverty and improve the living standard of its people, Nepal is taking further steps to create a more friendly business environment and help its exporters to become more competitive.