Trading Partner Portal: Nepal
Overview
Trade Overview
Napal is a land locked country that lies along the southern part of the Himalaya Mountain range, in between India and Tibet. It has a constitutional monarchy political system. In 2024, Nepal’s GDP totaled $42.91 billion and a population of 29.65 people.
Nepal hosts a variety of terrain, most notably its difficult mountain terrain, but also has low flat lands near the border of India, foothills, and mid-mountain region. Agriculture takes claim on close to half of the country’s export earnings, but it has seen the services sector as the largest contributor to national GDP, with it shifting away from agriculture.
U.S. – Nepali Trade
Goods imports form Nepal to the U.S. totaled $124 million, with textile and mill products being the number one import at $58 million. Other popular imports were processed foods ($31 million, apparel & accessories ($12 million), miscellaneous manufactures ($6 million), and other special classification provisions ($4 million).
California – Nepali Trade
California Nepal Trade has declined over the las few years with California goods exports to Nepal being $13 million in 2021 and dropping to $7 million in 2025. Top exports were chemicals ($3 million), agricultural products ($1 million), computer & electronic products ($1 million), non-electrical machinery ($605 thousand), and transportation equipment ($352 thousand).
Total imports form Nepal to California in 2025 was $20 million, showing a slight increase from $19 million in 2024. California is the number two importing state from Nepal, top commodities being textile mill products ($8 million), apparel & accessories ($3 million), used or second hand merchandise ($2 million), processed foods ($2 million), and chemicals ($1 million).
Trade Agreements
Trade Agreements
Nepal participates in multiple trade and cooperation agreements. It has ratified the South Asian Association for Regional Cooperation (SAARC) and Agreement on South Asian Free Trade Area (SAFTA) with Bhutan, India, Bangladesh, Pakistan, Sri Lanka, Maldives, and Afghanistan. Under SAFTA, Nepal and other members have pledged to cut tariff rates on a product-by-product basis, and more than 5,000 items are entitled to preferential duty treatment.
Nepal is the 147th member of the WTO and also is a member of the Bay of Bengal Multi-Sectoral Technical and Economic Cooperation agreement (BIMSTEC) with other members Bangladesh, Bhutan, Idia, Myanmar, Sri Lanka, and Thailand.
It has multiple treaties and bilateral trade agreements with seventeen countries including, China, Czech Republic, Pakistan, the United States, Russia, South Korea, to name a few.
It’s trade agreement with India is the most significant in terms of trade volume, as aside from some items, the trade treaty promises a unilateral duty-free regime with India.
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