Although Nepal is set to graduate from its least developed country (LDC) status in 2026, it can still enjoy duty-free and quota-free access to the European Union (EU) market until 2029.
Currently, Nepal benefits from the Everything But Arms (EBA) arrangement under the Generalised System of Preferences (GSP), which allows for the duty-free entry of Nepali products into the EU. After graduating from LDC status in 2026, Nepal will transition to the Standard GSP and GSP+ arrangements, as the EBA will remain in effect for an additional three years. This was highlighted by experts during a four-day workshop that began on Sunday in Lalitpur, organized by the Ministry of Industry, Commerce and Supplies (MoICS) in collaboration with the Trade and Export Promotion Centre, and funded by the EU’s Trade and Investment Programme. The workshop aims to boost exports to the EU using the EBA scheme and to raise awareness among the business community regarding the implications of LDC graduation on preferential trade schemes.
The training is designed to equip trade sector stakeholders with essential knowledge about the regulations and procedures for exporting to the EU while maximizing the benefits of GSP arrangements. The International Trade Centre (ITC) has also produced a series of business guides detailing export requirements for five sectors with significant potential: medicinal and aromatic plants, textiles and garments, coffee, metal crafts, and felt products. “This training will provide valuable insights into both domestic and EU regulations for Nepali exporters, helping them leverage the trade preferences currently available and those to come after the country graduates from LDC status,” said Qasim Chaudry, a trade expert from the ITC.
Rajendra Singh, deputy director of the Trade and Export Promotion Centre, noted that traders would gain valuable knowledge about the EBA, GSP, and GSP+ opportunities available to Nepali exporters through this event.
The workshop gathers 55 stakeholders from the trade sector, including representatives from government agencies, business support organizations, sector associations, academia, and exporters (including small and medium enterprises), with the aim of training them on exporting to the EU market and developing master trainers to facilitate future training sessions.
