Agricultural Trade Policies and Food Security in Nepal: A WTO Perspective

Inadequate trade infrastructure and recent export bans imposed by the largest trading partner India in major food staples has resulted in a high risk of food insecurity in Nepal. This study examines the potential adjustments to be made in Nepal's agricultural trade policies in line with WTO rules, so that these policies strengthen food security. The research is based on analytical, exploratory and interpretative in design. Researcher employs multi methods of research comprising desk review of existing policy documents on Nepal's agriculture trade, food security, and WTO provisions followed by the brief survey among farmers and consumers and a focus group discussion moderated with selected experts. Based on findings, researcher draws a conclusion that there is absence of a comprehensive Agriculture Act incorporating the pertinent policy issues of farmers, producers including supply chain management, agriculture financing, agriculture trade, self-sufficiency, food security, market access, subsidies, quality standards and such. Nepal has not yet been able to fully utilize the flexibilities provided to the LDCs under AoA. The bound tariff rates on market access is very much low in Nepal regarding the Agriculture products. Researcher recommends the concerned authorities to pass a comprehensive legislation on agriculture incorporating a separate Unified Agriculture Development Authority to look after the pertinent issues of agriculture. Tariffs on agricultural food products and forms of subsidies to protect the farmers in Nepal must commensurate with that of its largest trading partner India.