Trade Agreement

Agreements under the World Trade Organization (WTO)


Nepal became member of WTO in April 2004 becoming party to all the agreements included in this rules-based trading system. Nepal was the first least developed country (LDC) that completed the rigorous negotiations to accede to the WTO. Since all the acceding countries are obliged to accept the rules spelt one in the agreement, Nepal also is party to all of the agreements under WTO. There are 164 members of the WTO, which means Nepal can trade with these countries under WTO rules.

The direct benefits of joining WTO include non-discrimination, predictability and stability of the trading environment, increased market access and the opportunity to participate in multilateral trade rule-making and standard-setting. The basic rule of the WTO is to lower trade barriers, tariffs, import quotas, and regulations, with each other. Each member of the WTO grants each member Most Favored Nation status, which means that WTO members must treat each other the same. However, countries categorised as developing countries have some concessions compared to the developed counterparts. Moreover, lease developed countries receive more concessions and special treatment.

The broad three agreements under WTO are the General Agreement on Tariffs and Trade (GATT) (for goods), the General Agreement on Trade in Services (GATS) and Trade-Related Aspects of Intellectual Property Rights (TRIPS). Then there are other agreements and annexes dealing with the special requirements of specific sectors or issues.

Collection of the WTO Agreements

Nepal-related WTO information