The European Economic Community (EEC) was established in 1957 by six European countries - Belgium, France, Italy, Luxembourg, the Netherlands and the then West Germany to facilitate trade among themselves by eliminating the existing trade barriers. The economic entity was later converted into a political establishment viz., the Commission of the European Communities with a view to eventually merging into a single confederation having its own parliament and its own executive organ. Its membership increased from 6 to 12 by the early 80s by which time Britain, Ireland, Denmark, Greece, Spain and Portugal had also joined the EEC. Austria, Finland and Sweden joined the Community in its transformed shape of the European Union in January 1995.
With the ratification of the Maastricht Treaty (named after the Dutch city where it was negotiated) in 1993 and its subsequent coming into force, the then European Community has been transformed into the European Union. Some of the objectives of the 15-member Union are: a single currency, a European central bank, a common foreign policy, and a common defense force for the members of the Union. Eleven out of fifteen members have voluntarily opted to go for a single currency, Euro from January 1, 1999. Not participating in the Euro launch are, Britain, Denmark, Greece and Sweden. The Euro is ultimately expected to be an important currency along with US dollar and Japanese yen.
In April 2003, the European Parliament approved to allow membership to ten more European Countries.
For details: www.europa.eu.int
Nepal-EU Diplomatic Ties
After the establishment of the diplomatic relations in 1973, the European Union has shown considerable interest and has extended invaluable cooperation for the socio-economic development efforts of Nepal. The EEC joined the Nepal Aid Group in 1982 so as to coordinate its position with other donor countries. Besides economic assistance, the European Union has also taken keen interest in the problems of Bhutanese refugees in Nepal. The Commission of the European Communities established the EC Consultant Office in Nepal in May 1992 with a view to expanding bilateral contacts. Nepal established residential Embassy in Brussels and appointed the first Royal Nepalese Ambassador to the EEC in 1992. Mrs. Francine Henrich was appointed EEC’s first Ambassador to Nepal in November 1991.
An Agreement concerning establishment of EC delegation in Nepal has been signed on 13th of March 2002. Hon. Arjun Jung Bahadur Singh, Minister of State for Foreign Affairs of His Majesty's Government of Nepal and H.E. Christopher Pattern, Commissioner for External Relations of the European Commission signed the agreement on behalf of their respective government. With the signing of the agreement a full fledged EC delegation office has been established in Kathmandu.
European Commission assistance to Nepal dates back to 1997. In June 1996, the EC-Nepal Framework Co-operation Agreement was signed, which outlines the general conditions for development cooperation, between HMG and EC and the provision of EC technical assistance to Nepal.
The current Country Strategy Paper and National Indicative Program (CSP/NIP) covers the period 2002-2006. The EC has committed Euro 70 million for bilateral cooperation program during this period in three concentration areas:
Poverty Reduction
Consolidation of Democracy
Integration of Nepal into the International Economy
For Details:
www.europa.eu.int/comm/external_relations/nepal/csp/index.htm
www.delnpl.eu.int
Trade
BALANCE OF TRADE WITH INDIVIDUAL COUNTRIES
F. Y. 2003/04 |
| S.N. |
Countries |
Exports Value (Rs.) |
Import Value (Rs.) |
Balance (Rs.) |
| |
E. U. |
Rs. 7,540,692,760 |
Rs. 6,559,325,640 |
Rs. 981,367,120 |
| |
|
Euro: 84, 056, 326.00 |
Euro: 73,116, 955.00 |
Euro: 10,939,328.00 |
1 |
Austria |
89,374,494 |
368,689,920 |
-279,315,426 |
2 |
Belgium |
260,947,624 |
1,125,635,861 |
-864,688,237 |
3 |
Denmark |
128,550,201 |
339,538,171 |
-210,987,970 |
4 |
Finland |
6,486,802 |
48,715,070 |
-42,228,268 |
5 |
France |
581,761,717 |
675,531,693 |
-93,769,976 |
6 |
Germany |
3,567,035,651 |
1,977,895,741 |
1,589,139,910 |
7 |
Greece |
15,298,647 |
18,931,455 |
-3,632,808 |
8 |
Ireland |
5,427,719 |
14,960,211 |
-9,532,492 |
9 |
Italy |
589,369,859 |
451,516,382 |
137,853,477 |
10 |
Luxembourg |
1,043,734 |
24,736,644 |
-23,692,910 |
11 |
Netherlands |
286,167,768 |
229,288,639 |
56,879,129 |
12 |
Portugal |
28,874,165 |
1,600 |
28,872,565 |
13 |
Spain |
206,014,685 |
156,785,888 |
49,228,797 |
14 |
Sweden |
97,254,993 |
91,604,473 |
5,650,520 |
15 |
U.K. |
1,677,084,701 |
1,035,493,892 |
641,590,809 |
PERCENTAGE COMPOSITION OF REGIONS
IN THE TOTAL OVERSEAS EXPORTS OF NEPAL
F. Y. 2001/02 TO 2003/04
| Regions |
F. Y. 2001/02(2058/59) |
F. Y. 2002/03(2059/60) |
F. Y. 2003/04(2060/61) |
| |
Value |
% Comp |
Value |
% Comp |
Value |
% Comp |
European Union |
6,789,794,000 |
36.88 |
6,874,411,000 |
31.27 |
7,540,693,000 |
36.01 |
Euro |
75,686,033 |
|
76,629,261 |
|
84,056,326 |
|
MAJOR TRADING PARTNERS OF NEPAL
EXPORTS |
S.N. |
Countries |
F. Y. 2001/02 |
F. Y. 2002/03 |
F. Y. 2003/04 |
1 |
Germany |
4,043,218,000 |
3,555,327,000 |
3,567,036,000 |
2 |
U.K |
808,751,000 |
1,070,737,000 |
1,677,085,000 |
3 |
Italy |
566,557,000 |
530,869,000 |
589,370,000 |
4 |
France |
473,472,000 |
453,961,000 |
581,762,000 |
5 |
Switzerland |
382,823,000 |
|
306,255,000 |
6 |
Portugal |
|
414,680,000 |
|
7 |
Belgium |
295,140,000 |
|
|
| |
|
6,569,961,000 |
6,025,574,000 |
6,721,508,000 |
| |
Euro |
73,235,548.00 |
67,167,250.00 |
74,924,847.00 |
PERCENTAGE SHARE OF MAJOR COMMODITIES
IN THE OVERSEAS EXPORTS OF NEPAL
F. Y. 2003/04(2060/61)
S. N. |
Commodities |
Unit |
Quantity |
Share in % |
1 |
Woolen Carpet |
Sq.m |
1,648,918 |
26.1 |
2 |
Readymade Garments |
Pcs. |
38,994,326 |
45.6 |
3 |
Hides and Goatskin |
Sq.ft. |
6,627,864 |
1.4 |
4 |
Tea |
M.T |
1,002.2 |
0.5 |
5 |
Pulses (Lentils) |
M.T |
7,590 |
1.4 |
6 |
Cardamom (Large) |
M.T |
1,111 |
1.1 |
7 |
Sugar |
M.T |
9,250 |
1.9 |
8 |
Handicrafts |
|
|
2.1 |
9 |
Silverware & Jewellery |
|
|
1.5 |
10 |
Woolen & Pashmina Goods |
|
|
7.0 |
11 |
Towel |
|
|
1.2 |
12 |
Nepalese Paper & Paper Products |
|
|
1.7 |
13 |
Wooden Goods |
|
|
0.2 |
14 |
Others |
|
|
8.3 |
| |
Total |
|
|
100.0 |
Tourism:
Country of Nationality |
September |
% Change |
% Share '05 September |
Jan-September |
% Change |
% Share '05 Jan-September |
2004 |
2005 |
2004 |
2005 |
Austria |
382 |
395 |
3.4% |
1% |
1,737 |
1,375 |
-20.8% |
1% |
Belgium |
235 |
321 |
36.6% |
1% |
1,852 |
1,617 |
-12.7% |
1% |
Denmark |
169 |
127 |
-24.9% |
0% |
1,607 |
1,035 |
-35.6% |
1% |
France |
1,040 |
1,028 |
-1.2% |
4% |
10,118 |
7,019 |
-30.6% |
4% |
Germany |
1,430 |
1,593 |
11.4% |
6% |
8,944 |
7,732 |
-13.6% |
4% |
Israel |
654 |
892 |
36.4% |
3% |
2,824 |
2,469 |
-12.6% |
1% |
Italy |
566 |
634 |
12.0% |
2% |
6,707 |
5,298 |
-21.0% |
3% |
Netherlands |
562 |
492 |
-12.5% |
2% |
3,984 |
3,487 |
-12.5% |
2% |
Norway |
129 |
106 |
-17.8% |
0% |
967 |
757 |
-21.7% |
0% |
Switzerland |
347 |
334 |
-3.7% |
1% |
2,115 |
1,518 |
-28.2% |
1% |
Spain |
985 |
978 |
-0.7% |
4% |
6,914 |
5,153 |
-25.5% |
3% |
Sweden |
62 |
143 |
130.6% |
1% |
623 |
472 |
-24.2% |
0% |
U.K. |
1,572 |
2,090 |
33.0% |
8% |
14,170 |
13,691 |
-3.4% |
7% |
Sub-Total |
8,133 |
9,133 |
12.3% |
33% |
62,562 |
51,623 |
-17.5% |
28% |
To make more tourists to visit Nepal the followings are sought from the EC
1. Travel Advisory - Remove the tough travel advisory or at the least soften it
2. Insurance Issue -
3. Direct Access - Right now there are very few airlines connecting Nepal to Europe directly (only Austrian air is flying but only during season). European airlines need to be encouraged. HMG/Nepal will also cooperate
4. Joint Promotion - Assist Nepal for joint promotion be it press conference / advertisements / sales mission / tourism fairs etc. Matching fund concept can also be implemented
5. Human Resource Development - Assist Nepal in training much needed personnel from the tourism industry
6. Infrastructure Development - If possible extend cooperation in developing infrastructure specially in new tourism potential areas.
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