Nepal’s Experiences on Implementation of the Integrated Framework (IF) & Enhanced Integrated Framework (EIF) Jib Raj Koirala Under Secretary, Ministry of Commerce and Supplies Government of Nepal 21 June 2010

Outline of the Presentation Objective Background of IF and EIF Structure of EIF IF and EIF in Nepal a Journey Achievements EIF Implementation mechanism in Nepal Problems faced by Nepal Challenges ahead Way Forward Expectations

Objectives Sharing Information Among Participants. Inputs for Effective Donor-Government Co-ordination Mechanism for EIF Implementation Consultation on Effective Operation of Tier and Suggestions for Tier 2

Background The (E)IF is a multi-Agency, multi-Donor program of technical assistance established in 1996 by the WTO Trade Ministers to accelerate the integration of LDCs into the global economy. Broadly speaking, it aims to improve the capacity of the LDCs to formulate, negotiate and implement trade policy…. enabling them to fully integrate into the multilateral trading system and to take up the market opportunities. Doha Ministerial Declaration of the WTO (2001) (Para 38):confirmed that technical cooperation endorsed a new strategy for WTO technical cooperation,instructed the Secretariat for implementation.

Background (Contd.) The Hong Kong Ministerial Declaration of the WTO (2005) also includes several issues related to aid for trade, particularly on Integrated Framework (Para ).

Structure of EIF –At Global Level: EIF Secretariat at WTO Geneva, led by Executive Director United Nations Office for Project Services (UNOPS) as EIF Fund Manager –National Level: National Steering Committee (NSC) Focal Point (FP) National Implementation Unit (NIU)

IF and EIF in Nepal: journey from 1998 to NTIS 2010 Nepal submitted her first proposal to get IF fund in 1998/1999 (but not received any technical assistance until 2004) Submitted next proposal in 2004 under revamped IF. Received around total US$ 703,000 under IF (US$ 38,000 under Window I and US$ 665,000 under Window II). Prepared Diagnostic Trade Integration Study in To implement recommendations (Action Matrix) of DTIS 2004, Nepal Window II Trade Related Capacity Building Project (NWII TRCB) was implemented in Only a few recommended actions of DTIS 2004 were completed/conducted under NWIITRCB Project (duration of the project was very short – only one year, and limited resources). Major activities recommended by DTIS 2004 were left because of limited resources available. A new ‘Enhancing Nepal’s Trade Related Capacity Project’ was designed/implemented ( ) to implement DTIS 2004 and remaining IF fund was transferred to it.

Nepal’s Journey (Contd.) The five intervention areas of ENTReC project are to: –increase competitiveness of Nepali exporters, –create a more empowered and engaged private sector, –enhance the rigor of analysis underpinning Nepali trade policy, –foster human development friendly investment, and –explore areas of future promises for Nepal’s trade-related economic growth. ENTReC Project is extended for one year period (July 2008 – June 2010) and contributed. –strengthening EIF national implementation mechanism, – Assist MOCS to develop of Tier 1 proposal to get EIF fund, and –to conduct trade related need assessment activities. – Helped update DTIS Action Matrix, now NTIS 2010 is ready for implementation.

Nepal’s Journey (Contd.) Other Technical Assistance: –European Commission (EC WTO Technical Assistance Project: Euro 2 Million): Objectives Strengthening of national SPS, TBT related organization capacity building of Ministry of Commerce and Supplies. (Steering Committee formulated and held four meetings, coordinator of the project appointed).

What achievements so far? Through IF fund with the support of UNDP : 1.Training and awareness programme (customs, standard, IP and Enterprises development training in Jumla Rolpa, Palpa Dhankuta, 2. Prepare Manuals (Pre-shipment inspection, GATT Valuation System) 3.Provided Equipment ( lab equip in Standards, CCTV in Custom and some computers in IP) 4.Technical Assistance,TA, in the process of Policy Formulation ( Draft prepared Trade, Industry, and Investment Policies.) 5.TA for feasibility Study (Transport/Transit (feasibility studies on alternative transit routes and ICDs.Export potential services Health, education etc). 6.Export promotion materials (Tea, honey, Pashmina etc). 7.Public Private sector dialogue (BCRT/ PPDF Nepal at FNCCI).

EIF Implementation Mechanism in Nepal: Government of Nepal (GoN) has constituted EIF National Steering Committee (NSC), under the Chairmanship of the Chief Secretary of the GoN, to initiate EIF in-country implementation. Secretaries of the GoN, high-level officials from the concerned agencies and representatives from the private sector are also members of the NSC. The first meeting of NSC held in June The GoN has already appointed the Secretary of Commerce & Supplies (MOCS) as EIF Focal Point (FP). In order to facilitate EIF process and establish an effective coordination between GoN and the donors, NIU was established at MOCS (headed by Joint Secretary). UNDP is taking a role of Donor facilitator. EIF Tier 1 fund has been received.

Problems faced by Nepal in mobilization of IF Limited resources from IF trust fund to implement actions recommended under DTIS Weak co-ordination and lack of capacity (intergovernmental, government-private sector and government-donors) to implement the reform measures. Inadequate response by local donors. Ambiguity of ownership for implementation of DTIS 2004 itself (responsible agencies not specified clearly, budgetary requirements are not in place, etc.).

Challenges Ahead Successful Implementation NTIS as updating DTIS (2010). Implementation of Tier 1 fund and get prepare for the Tier 2 resources. (Need assessment, establishment of coordination mechanism for development of Tier 2 proposals and implementation of DTIS 2009 action matrix.) Implementation and prepare of Projects/Programs in coordination with the concerned to achieve the actions recommended in NTIS 2010.

Way Forward To overcome such problems initiatives required at both global and country level. –Global level (EIF): Avoidance of cumbersome process, while access to the fund Reduce gap between pledged and disbursed amounts Proactive EIF Secretariat –Country level Effective functioning of institutional set up (NSC, FP, NIU and DF) Better co-ordination among stakeholders (Govt., Pvt. Sector, DPs) capacity building Awareness (including local DPs).

Expectations DPs-Active involvement for an effective NTIS Implementation. Donor Facilitator- Support in Tier 2 process and coordinate among Partners for continuous support All government agencies for a better coordinated approach Ensure Private sector participation in the process

THANKS