Trading Partner Portal: Nepal
Overview
Trade Overview
Nepal is a land locked country that lies along the southern part of the Himalaya Mountain range, located between India and Tibet Autonomous Region of China. The country has adopted a federal republic system of governance since 2008. Nepal celebrates its national day on 20 September.
The country has rich cultural heritage and diverse geography. It is a multiethnic, multilingual, multi-religious country nurturing 142 ethnic groups that speak 124 languages. It hosts a variety of terrain, most notably high mountain terrain in the north, mid-mountain region, valleys, foothills, and low flat lands near the border with India in the south.
Nepal’s economy is primarily dependent upon agriculture. In recent years, its service sector including trade, tourism, banking and telecommunications has continued to grow, with the IT sector growing rapidly in recent years. Manufacturing and industries remain at a moderate level. Agriculture contributes 25% to the country’s GDP, whereas service sector and industry cover 62% and 13% respectively.
As of 2025, Nepal’s GDP totaled $45.51 billion, and with a population nearly 30 million, per capita income stands at $1,535.
U.S. – Nepali Trade
The U.S. and Nepal saw a total of $236 million in two-way goods trade in 2025. Total goods exports from the U.S to Nepal in that same year were $112 million with top exports being agricultural products ($51 million), chemicals ($14 million), computer & electronic products ($13 million), other special classification provisions ($10 million), and transportation equipment ($8 million).
Goods imports from 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 and Nepal have had a long-standing relationship, with a roughly 50,000 Nepali residents residing in California.
California and Nepal trade has declined over the last 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 from 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 secondhand 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.
Events
New California Nepal Consulate of San Francisco Visits CalChamber
(April 8, 2026) The CalChamber was pleased to welcome the new Nepal Consul General Mr. Lakshuman Khanal and the Deputy Consul General Mr. Rishi Raj Acharya. Among many topics discussed was the recent opening of the Nepal Consulate General in San Francisco together with the U.S. / California- Nepal relationship and related business opportunities.