Due to higher tariffs in 2026, potential 4% decrease in Export of Dog Chew from Nepal.

Nepal is set to graduate from the Least Developed Country (LDC) category by the end of 2026, following notable progress in the Human Asset Index (HAI) and the Economic Vulnerability Index (EVI). The country's graduation, determined through triennial reviews, was recommended in 2021, with an extended preparatory period until 2026 due to the COVID-19 pandemic. Despite challenges such as climate change and the pandemic, Nepal aims for a smooth, sustainable transition out of LDC-specific support, with a focus on minimizing export losses resulting from the removal of preferential tariffs.

The study, conducted by the International Trade Centre and the United Nations Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries, and Small Island Developing States, estimates that Nepal could face a 4.3% decline in exports due to tariff changes post-graduation. Sectors like apparel, synthetic textile fabrics, and carpets are expected to be particularly affected, with losses mainly impacting exports to China, the European Union, and Turkey.

To mitigate these impacts, the report suggests strategic measures such as targeted trade promotion and market diversification. The analysis recommends prioritizing actions based on the comparison between trade losses and untapped trade potential, offering concrete strategies for Nepal to navigate the challenges of LDC graduation.

In the context of specific products, such as Himalayan dog chews, the potential impact on exports may include higher tariffs and a potential 4% decrease in 2026 exports. It is crucial for Nepal to address these challenges by emphasizing policy priority in sectors like tourism, agribusiness, and hydropower, leveraging the country's natural comparative advantages for sustained growth and employment opportunities.

Bishow bandu sharma

Dog chew researcher