The 60th CACCI Council Meeting Concluded in Nepal
The Confederation of Asia-Pacific Chambers of Commerce and Industry (CACCI) at its 60th Council Meeting held on 18-19 May 2000 in Kathmandu, Nepal, called on governments in the region to undertake measures in support of capacity-building that will enable Asia's economies to meet the challenges of globalization and take advantage of the opportunities it offers.
The two day Council Meeting was attended by representatives of the national chambers of commerce and industry of Australia, Bangladesh, Hong Kong, India, Indonesia, Japan, Korea, Nepal, the Philippines, Russia, Sri Lanka, Taiwan, Thailand, and Vietnam inaugurated by Mahesh Acharya, Minister of Finance of Nepal.
Pradeep Kumar Shrestha, President, Federation of Nepalese Chambers of Commerce & Industry (FNCCI) gave the welcome address. Similarly Amb Jeffrey L.S. Koo Honorary President of CACCI has responded to the inaugural address of the minister. At the beginning of the inaugural ceremony opening statement was give by Ken W. Court, Chairman of the Advisory Board of CACCI.
The 60th Council Meeting of CACCI was hosted by the Federation of Nepalese Chambers of Commerce & Industry (FNCCI).
At the end of the meeting a press conference was also organised.
The joint communique published at the end of the meeting includes the following:
The 60th CACCI meeting discussed safety-net measures to cushion the pains of policy adjustments that countries in the region face as a result of their participation in the globalization process.
While reiterating its support for trade and investment liberalization and its conviction that free and open markets provide the most conducive environment for expansion and integration of the world economy, CACCI also noted that globalization have not brought prosperity and development to the same degree to all Asian nations, and to all sectors within these nations. CACCI therefore called on governments and business in the region to cooperate in dealing with the economic and social problems brought about by globalization, while taking care both to reverse the basic direction of development that CACCI said has been successful in the past.
CACCI also expressed its belief that the transition from the present situation in the region's developing economies is a complex economic and political process that needs to be managed carefully and prudently. Hence, it is important during this transition to support the process of liberalization by putting in place measures that will enhance its benefits, while facilitating adjustment, especially for the most vulnerable sectors.
CACCI therefore urged governments in the region to implement the following measures in support of capacity building:
a. Governments should ensure that all policies are consistent with a more liberal economic regime and promote the rapid growth of competitive sectors. Specifically, policies and policy biases that hamper the development of potentially competitive sectors, such as policies biased against the agriculture sector in developing economies and policies that encourage domestic cartels and monopolies, should be corrected. To achieve this, governments should review all relevant policies that have an impact on the economy and most especially, on those sectors that would be affected by trade and investment liberalization. These should include tariff, trade and industrial policy; policies affecting competition and fair business practices; direct and indirect subsidies; taxation; and policies governing the provision to all economic sectors of key services such as finance, transportation, telecommunications, energy and retail trade.
b. Governments should ensure that infrastructure spending is focused on areas that would produce the greatest benefit, most especially in terms of encouraging investment in globally competitive sectors that could absorb large numbers of human resources and contribute significantly to the success of structural adjustment. An appropriate and effective policy framework should be provided to encourage greater private sector participation in physical infrastructure development. Social infrastructure, especially education, health and skills development, is also important, as will be sustained environmental management.
c. Governments should formulate and implement policies that would promote the growth and development of small and medium enterprises (SMEs). These include policies that address issues related to SMEs' access to finance, markets, technology and information; policies and regulations that encourage the establishment and operation of enterprises, with a view to reducing red tape; policies that promote more efficient provision of key services, with a view to reducing the incidence of monopolies and cartels in key industries and services; and labour policies that would provide a more deregulated and favorable environment for SMEs to thrive. Where needed, governments should establish mechanisms to directly aid SMEs in raising capital.
d. Governments should promote and encourage programs that address weaknesses in human resources development. Governments should provide effective policy frameworks for expanded participation of the private/business sector in human resources development, especially in providing the work force with skills that correspond to the direction of structural changes in the economy.
e. Within the framework of APEC, especially its economic and technical cooperation (ECOTECH) framework, the various economics of the region should intensify collaboration in capacity building focused on enabling the less developed member economies to develop potentially competitive sectors more rapidly as they liberalize their trade and investment policies. Particularly, APEC should provide a mechanism for pooling resources and expertise in the areas of human resources and infrastructure development, as well as in the development of the agriculture and fisheries sectors in the less advanced economies.
CACCI called on developed countries to help developing countries build local capacities to realize the commercial and social dividends of globalization. For the least developed countries, this can include targeted foreign aid programs which help those nations build fundamental capacities for self sustained economic growth and development. For other developing countries, this should also include the widening and deepening efforts by developed countries to liberalize domestic and international markets for trade and investment (for example, by dealing with tariff peaks, non-tariff barriers, and unjustifiable subsidies), so emerging economies can better realize their competitive advantages in trade and commerce. CACCI also pointed out that an ambitious and comprehensive multilateral round of trade and investment liberalization would assist developed countries to realize the dividends of globalization by strengthening the binding rules of the global trading system.
CACCI encouraged international agencies, both governmental and private sector, to provide developing countries with advice on pro-market, efficiency enhancing and outward oriented commercial and economic policies. Sound education, training, health and public finance and governance policies and structures are necessary elements of such policy frameworks. Adjustment assistance, where legitimate and necessary, should help position developing economies to achieve self sustained economic growth and development, and not to create ongoing welfare-dependencies.
In line with its policy to set in place programs aimed at promoting the long term development of small and medium enterprises (SMEs), CACCI agreed to organize an SME trade fair in India in 2001. The project will feature two concurrent events: the Asia Pacific Exp. 2001, aimed at helping participating companies to showcase their products and promote joint ventures and marketing tie-ups; and the Asia-Pacific Business Forum 2001, which will look at international issues and identify strategies of interest to the region.
CACCI agreed to organise sometime in the near future a dialogue between the SAARC CCI and the ASEAN-CCI to provide a forum for the two bodies representing the business communities in the two regions to discuss trade and investment promotion issues and identify areas of possible cooperation.
CACCI, recognizing the need for an efficient and reliable trade matching system to facilitate and enhance trade activities among countries in the region, agreed to consider the possibility of supporting a complete trade matching system known as "Trade Tracker", an Internet based software application development and marketing by Digerati Pty. Ltd.
CACCI endorsed the findings of the two conferences held in conjunction with the "Asian Capitalism" project, of which it is one of the co-sponsors, and agreed to use these as basis for coming up with its own recommendations on where policy should move to ensure that the region:
a. avoid the same mistakes that led to the recent Asian crisis, and
b. Proceed with its growth and development with greater confidence and much better governance
CACCI agreed to hold its next Council meetings, as well as its 18th Conference, in Ho Chi Minh City, Vietnam on 30 November 1 December 2000, with the Vietnam Chamber of Commerce and Industry as host.
MoU signed between FNCCI & Korea CCI
With a view to further promote economic and commercial links between Nepal and the Republic of Korea, First Vice President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), Rabi Bhakta Shrestha and the Executive Vice President of the Korea Chamber of Commerce and Industry (KCCI), Kim Hyo Sung singed a Memorandum of Understanding (MoU) on May 18 this year in Kathmandu.
The President of FNCCI Pradeep Kumar Shrestha and the Ambassador of the Republic of Korea (ROK) to Nepal, Boo Hong Hwang were present during the MoU signing function.
Speaking on the occasion, FNCCI President Shrestha said that the MoU would assist greatly in expanding economic links further between Nepal and ROK. He further said, "The MoU would play an important role in helping to bring a balance in Nepal-ROK commercial transactions if we can increase Korean investments in potential sectors of Nepal".
The ROK envoy to Nepal, Boo Hong Hwang, while stating that the just recently signed MoU is of great significance in expanding bilateral trade, also stressed on the need to translate the articles of the MoU into concrete actions so that industrial and trade relations between Nepal and ROK will be further promoted.
Kim Hyo Sung, KCCI Executive Vice president, observed that his organisation would be trying its best to bring about a balance in bilateral trade by going for joint investment in Nepal's potential sectors. He also stated that the ROK is all for increasing economic relations between Nepal and ROK.
As per the MoU Nepal and ROK would be maintaining contacts for bilateral trade, joint investments, carry out activities to promote economic, technical ties, regularly keep both the nations informed about the economic development and foreign trade policies of each other and to exchange visits for further promoting trade and investment between Nepal and the ROK.
FNCCI team meets Indian Finance Minister
The Nepalese delegation led by president of Federation of Nepalese Chamber of Commerce and Industry (FNCCI) Pradeep Kumar Shrestha met with Indian Finance Minister Yashwant Sinha and Minister of State V. Dhananjaya at the Finance Ministry in New Delhi recently and discussed matters relating to the adverse affect on Nepalese export caused by the special additional duty levied on Nepalese goods exported to India and the state of confusion arising as a result of central VAT of India.
The delegation while in Delhi held discussion on matters relating to enhancement of regional cooperation and trade, and investment with president of SAARC Chamber of Commerce and Industry Qusim Ibrahim, office bearers of Federation of Indian Chambers of Commerce and Industry and PHD Chamber of Commerce and Industry.
The delegation had been invited by the Confederation of Indian Industry (CII) to take part in the national conference and annual general meeting of the CII held in New Delhi from April 25 to 27.
Agreement between FNCCI & FBCCI
Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) have reached an agreement to constitute a joint task force in order to study and present necessary recommendations on matters relating to the economic relationship between the two countries, policies, customs duty, tax provision, transit, transportation, etc.
The task force will present its report within this year.
An agreement to this effect was signed by FNCCI president Pradeep Kumar Shrestha and FBCCI president Abdul Awal Mintu in Kathmandu recently.
On the same occasion, an agreement was also signed between Mechi Chamber of Commerce and Industry and Panchagarh Chamber of Commerce and Industry of Bangladesh to enhance mutual cooperation.
President of Mechi Chamber of Commerce and Industry Pannalal Jain and president of Panchagarh Chamber of Commerce and Industry M. Dilwar Hussain signed an agreement on behalf of their respective institutions.
High level investment promotion body formed
A high level investment promotion directive committee has been formed under the chairmanship of Prime Minister Girija Prasad Koirala to act as a fast track committee with a view to make the promotion of domestic as well as foreign private investment effective in accordance with the open and liberal economic policies and the policy concerning privatization adopted by His Majesty's Government.
According to the Prime Minister's office, the deputy prime Minister, the ministers for construction and physical planning, water resources, finance and industry, the vice chairman of the National Planning Commission and the chief secretary have been designated members of the committee with the secretary at the Prime Minister's Office as member secretary.
The Prime Minister's Office will act as secretariat for the committee.
The committee will encourage and promote domestic as well as foreign private investment, sanction investment proposals, bring about necessary coordination in endorsement and implementation, follow up on and supervise the implementation aspect of such proposals, create an environment conducive to such proposals and issue necessary directives in this connection.
Tourists arrival down by 8%
The number of tourists coming to Nepal by air in the first four months of the year 2000 has reached 120,951.
Total tourist arrivals this year have decreased by about 8 percent compared to the number of tourist arrival in the corresponding period of 1999. The number of tourist arrival in the first four months of 1999 was 130,175.
Similarly, Indian tourists have decreased by about 38 percent in the first four months of 2000 compared to the corresponding period of 1999.
FNCCI, FJCC sign accord on economic ties
The Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Federation of Jordanian Chambers of Commerce (FJCC) signed an agreement recently for expanding economic relations between the two countries and identifying possibilities of investment.
FNCCI president Pradeep Kumar Shrestha and FJCC President Haider Murad had signed the agreement.
Speaking at the signing ceremony, Mr. Shrestha said Nepal has great potential for investment in the area of agriculture, hydro-electricity, tourism, information technology etc.
FJCC president Murad noted that Jordanian investors want to invest in Nepal and this will be fulfilled by the agreement.
Jordan wishes to import tea, coffee, fresh fruits, cereals, etc, from Nepal, he added.
The Jordanian delegation had come in Nepal in course of taking part in the Export Promotion Meeting 2000.
