U.S. Envoy Addresses Nepal-USA Chamber

March 2, 2007                      

U.S. Ambassador James F. Moriarty today addressed the 12th annual General Meeting of the Nepal-USA Chamber of Commerce and Industry (NUSACCI).   He said it is "crucial" that economic reforms go forward in Nepal, and he also said recent Maoist actions have undermined business confidence. 
 
Here is the text of his remarks, as prepared for delivery:

I am pleased to be here tonight to address the 12th Annual General Meeting of the Nepal-USA Chamber of Commerce and Industry (NUSACCI) and to congratulate the Chamber on the publishing of its first ever Members Directory.  

U.S.-Nepal trade relations began almost 60 years ago, with the signing of the Agreement on Friendship and Commerce on April 25, 1947.  Trade and investment between the U.S. and Nepal is an important component of our bilateral relationship. 

I am gratified that, in spite of a decline in Nepal's economy, the United States has maintained its position as the second biggest importer of Nepalese goods and the second largest foreign investor in Nepal.   In 2006, U.S. imports from Nepal were nearly USD$100 million.  U.S. investments in Nepal totaled more than USD$250 million.

Since its inception in 1994, one year after the Government of Nepal initiated its economic liberalization program, the NUSACCI has played a vital role in helping Nepal modernize its trade and investment regime.   One of the Chamber's principal goals has been to help Nepal compete successfully on the world market.

Nepal achieved a major landmark in that regard when it became the 148th member of the World Trade Organization (WTO) in April 2004.   Nepal had joined the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) two months earlier in February 2004.  Despite persistent differences between some key members, the South Asian Free Trade Area (SAFTA), which came into effect in January 2006, also offers the promise of a potential step forward for Nepal in the global marketplace.

The NUSACCI has contributed to these accomplishments with persistent and concerted efforts, working by itself and with other important Chambers of Commerce, to change the regulatory structure in Nepal to bring it more in line with global trade and investment norms.    Just last November, NUSACCI and the U.S. Mission and USAID cooperated with the U.S.-India Chamber of Commerce to host a major hydropower conference in Kathmandu.   My colleagues at the U.S. Mission to Nepal and I are proud to have been partners with NUSACCI over these years.

In this time of political transition for Nepal, it is crucial that Nepal's economic reforms go forward.  If Nepal is to overcome its bitter legacy of poverty and conflict, economic opportunities must be created for all of Nepal's people, regardless of caste, gender, sect or age.  Nepal has a wealth of talent, but that talent has yet to be unleashed.  

While progress in the peace process, notably the signing of the Comprehensive Peace Agreement in November, encouraged both Nepali businesses and foreign investors, recent activities by the Maoists have undermined business confidence.   A Maoist Member of Parliament boasting that he was armed in Parliament, for instance, completely negates Maoist claims that they are committed to democracy.   Similarly, a front page photo of Maoists brandishing weapons at a rally, in undeniable violation of the Comprehensive Peace Agreement, sends exactly the wrong message.

As the Industrial Security Group, which groups several leading Embassies and their respective bilateral Chambers of Commerce and of which I am the acting chair, said in a statement two weeks ago:

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--The Maoist continuing use of violence and intimidation is in clear violation of their commitments under the Comprehensive Peace Agreement and at complete odds with their new status as members of the Interim Parliament.  

--We call upon the Maoists to cease these activities immediately. 

--If Maoist abuses and trade union militancy continue, Nepal's private sector will be choked and investment will cease.   If that happens, Nepal will be unable to generate the jobs and prosperity it needs to develop.

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The ISG also welcomed efforts by the Government of Nepal to address the genuine grievances of historically underrepresented groups.

The Nepal-USA Chamber of Commerce and Industry and the broader Nepali business community have a significant role to play in Nepal's transition.   We welcome the opportunity to continue to work with the NUSACCI and the Nepali business community at large toward a peaceful, prosperous and democratic Nepal.