Government authorities in Nepal have confirmed that members of the American delegation, who attended a high-level bilateral meeting in Nepal, have agreed to lobby the US Congress for the extension of the law allowing duty-free entry of 77 goods produced in Nepal into the United States.

The US has granted duty-free access to 77 Nepali goods since 2016 under the Nepal Trade Preference Program (NTPP). The program is set to expire in December 2025, and the US Congress must decide whether to extend it. The law was initially passed in 2015 to support Nepal’s economy after the devastating earthquake.

After the 7th Trade and Investment Framework Agreement (TIFA) Council meeting between Nepal and the United States, held on Monday, Baburam Adhikari, joint secretary and spokesperson for the Ministry of Industry, Commerce, and Supplies, shared that the American government is committed to lobbying within the US Congress for the program’s extension.

"The US delegation assured Nepal that they will advocate for extending the NTPP and adding more items to the list of duty-free products," Adhikari stated.

The Nepali delegation was led by Govinda Bahadur Karki, secretary at the Ministry of Industry, Commerce, and Supplies, while Brendan Lynch, assistant US trade representative for South and Central Asia, led the US delegation. The TIFA Council serves as a bilateral mechanism to promote trade and investment between the two countries.

Nepali officials have also requested that the US extend duty-free benefits to 30 additional goods and services under the NTPP, including ready-made garments and information technology products. However, none of the 77 goods currently covered by the NTPP have yet been exported from Nepal. Private sector representatives argue that the program has focused on goods such as handicrafts, shawls, and travel materials, which already have low tariffs, leading to little impact on the competitiveness of Nepali exports.

The Nepal Readymade Garments Association has urged the inclusion of 15 specific items under the customs exemption, such as cotton shirts, pants, t-shirts, and synthetic garments for both men and women. These items, defined as "fast-moving and core competence" products, are believed to hold potential for boosting exports.

Since any expansion of the list of eligible products requires approval from the US Congress, Nepali officials are pushing for stronger lobbying efforts. "The extension of the law and the addition of new items is solely within the jurisdiction of the US Congress, so the US government cannot make direct decisions on Nepal's requests," an official noted.

"Supporting Nepal’s economic growth and mutual prosperity remains a top priority," the US Embassy in Nepal stated on social media. The Embassy further highlighted that after the 2015 earthquake, the US Congress passed the Trade Facilitation and Trade Enforcement Act, which included a special country-specific preference program to provide duty-free access to certain Nepali products, including handicrafts, shawls, and travel goods.