Kathmandu: The United States and Nepal have confirmed that the 8th Trade and Investment Framework Agreement (TIFA) Council Meeting will take place in Washington D.C. in 2025, signaling continued efforts to strengthen bilateral trade and investment ties. The announcement followed the successful conclusion of the 7th TIFA meeting in Kathmandu, where both sides made significant progress in addressing key economic issues and deepening cooperation.
At the 2024 Kathmandu meeting, co-chaired by Brendan Lynch, Assistant United States Trade Representative for South and Central Asia, and Gobinda Bahadur Karkee, Secretary of Nepal’s Ministry of Industry, Commerce, and Supplies, the delegations discussed a wide array of topics, including market access, investment opportunities, and regulatory reforms. The upcoming 2025 meeting in Washington is expected to build on these discussions, particularly around Nepal’s impending graduation from Least Developed Country (LDC) status and the future of the Nepal Trade Preference Program (NTPP).
Expanding US Market Access and Strengthening Investment
One of the central themes of the Kathmandu talks was Nepal’s request for an extension of the NTPP, set to expire in 2025. With the graduation from LDC status looming, Nepal is keen to maintain preferential market access to the US to support its export industries. The United States acknowledged Nepal’s concerns and agreed to consider the extension, which would provide critical economic relief as the country transitions from LDC-specific benefits.
In preparation for the 2025 talks, both sides will focus on ways to boost investment flows, particularly in the digital economy and IT services sectors. Nepal expressed a strong interest in attracting additional foreign investment, emphasizing ongoing reforms aimed at improving the country’s investment climate. The United States welcomed Nepal’s efforts and urged the country to maintain policy transparency and regulatory stability to ensure long-term economic growth.
Agriculture and Labor Rights: Major Breakthroughs Expected
The 2025 meeting is also likely to revisit key agricultural trade issues. In a significant breakthrough from the Kathmandu talks, Nepal agreed to remove import restrictions on US pork and poultry. The official acceptance of the US Food Safety and Inspection Service (FSIS) certification is expected in the coming months, a move that will unlock new trade opportunities between the two countries. By the time the Washington meeting takes place, both sides hope to have seen the full benefits of this agricultural agreement.
Another crucial focus area will be labor rights, with both the US and Nepal committed to advancing workers’ protections. The US has pledged continued support for Nepal’s labor reforms, which are seen as vital for ensuring sustainable economic development and attracting foreign investors.
Intellectual Property and Reinsurance in the Spotlight
The Washington meeting will likely see further progress on intellectual property (IP) protection, with Nepal committed to improving its IP administration. The United States has emphasized the importance of strong IP laws to attract investment in IP-intensive industries, and both sides will continue working on enhancing legal and institutional frameworks in this regard.
Additionally, the US urged Nepal to open its markets to global reinsurers, a proposal that is expected to feature prominently in the next round of discussions. By allowing global reinsurers to enter the Nepali market, Nepal can benefit from enhanced risk diversification and international best practices.
TIFA as a Platform for Deeper Cooperation
As the TIFA framework continues to evolve, both the United States and Nepal have committed to using it as a platform to address emerging challenges and opportunities in bilateral trade and investment. The Washington D.C. meeting in 2025 is set to be another crucial milestone in strengthening economic ties, as both nations explore ways to enhance cooperation in areas ranging from digital trade to environmental sustainability.
The success of the Kathmandu meeting and the anticipation surrounding the 2025 talks underscore the growing importance of US-Nepal economic relations. With both countries focused on building a stronger and more diversified trade partnership, the upcoming Washington D.C. meeting promises to be a pivotal moment in the evolving trade and investment landscape.
