Nepal after LDC Graduation: New avenues for exports

Nepal could lose 4.3% of exports because of tariff changes when it graduates from least developed country status in 2026. The removal of preferential tariffs will especially affect the apparel, synthetic textile fabric and carpet sectors. Losses will mostly occur in exports to China, the European Union, and Turkey.

This report suggests strategies such as targeted trade promotion and market diversification to materialize remaining export potential and counterbalance the expected impact of graduation on exports.