Market Access Barriers to Select Nepalese Agricultural Exports

This report by the South Asia Watch on Trade, Economics & Environment (SAWTEE) analyzes tariff and non-tariff barriers affecting five select Nepalese agricultural exports: tea, natural honey, floriculture, medicinal plants, and vegetable seeds. It examines market access across 12 international markets, distinguishing between the high tariff barriers found in neighboring South Asian countries and the high incidence of non-tariff measures (NTMs) in developed economies.

• Nepal's agricultural sector is the largest in its economy and the primary livelihood for approximately 80% of the population, although its contribution to GDP fell from 47.4% in 1990–91 to 39.2% in 2003–04.
• Agricultural exports from Nepal face significant tariff peaks in neighboring markets, with bound tariffs reaching as high as 200% in some countries, which the report suggests act similarly to quantitative restrictions by foreclosing export possibilities.
• While developed countries may not maintain high tariffs, they frequently employ non-tariff measures (NTMs). For example, the EU's stringent honey standards, based on the precautionary principle and requiring specific accreditation for laboratories, led to the delisting of Nepal as an eligible honey exporter over two years prior to the report.
• The Republic of Korea is identified as a highly protected market across several commodities, maintaining a bound tariff of 513.6% for green tea and applied tariffs for medicinal plants ranging from 8% to 754.3%.
• The report highlights 'dirty tariffication' and the use of non-ad valorem (specific) tariffs by developed countries, which increase protectionist impacts when world prices decline. For instance, 43.6% of EU and 40.4% of U.S. agricultural tariff lines contain non-ad valorem tariffs.
• To improve market access, the report recommends that Nepal press for the conversion of specific tariffs to ad valorem tariffs, the phasing out of export subsidies, and the use of the South Asia Free Trade Agreement (SAFTA) to negotiate the exclusion of LDC export interests from 'sensitive lists'.

APA

Adhikari, R., & Adhikari, K. (2005). Market Access Barriers to Select Nepalese Agricultural Exports. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/tkn_market_access_nepal.pdf

Chicago

Adhikari, Ratnakar, and Kamalesh Adhikari. Market Access Barriers to Select Nepalese Agricultural Exports. International Institute for Sustainable Development, 2005. https://www.iisd.org/system/files/publications/tkn_market_access_nepal.pdf.

Wikipedia

{{cite report |last1=Adhikari |first1=Ratnakar |last2=Adhikari |first2=Kamalesh |title=Market Access Barriers to Select Nepalese Agricultural Exports |publisher=International Institute for Sustainable Development |date=December 2005 |url=https://www.iisd.org/system/files/publications/tkn_market_access_nepal.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{adhikari2005market, author = {Adhikari, Ratnakar and Adhikari, Kamalesh}, title = {{Market Access Barriers to Select Nepalese Agricultural Exports}}, institution = {International Institute for Sustainable Development}, year = {2005}, month = dec, url = {https://www.iisd.org/system/files/publications/tkn_market_access_nepal.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }