Discussions on a bilateral preferential trade agreement (PTA) have been under way since 2017.
During a virtual secretary-level meeting in 2020, both sides agreed in principle to pursue such an agreement. However, Nepal wants Bangladesh to first remove para-tariffs on Nepalese goods.
The latest talks will focus on bilateral trade and transit issues, including export-import facilitation.
Although Bangladesh is a nearby and potentially large market for Nepali products, para-tariffs have long constrained exports, Ministry of Industry, Commerce and Supplies spokesperson Netra Prasad Subedi was cited as saying by a Nepalese media outlet.
Despite both sides being members of the South Asian Free Trade Area (SAFTA), Nepal has struggled to benefit from preferential access to Bangladesh.
Nepal continues to face a widening trade deficit with Bangladesh.
ALCHEMPro News Desk (DS)
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