EU-Nepal Trade and Investment Diagnostic

This report presents an analysis of Nepal’s evolving economic relationship with the European Union at a pivotal moment as the country prepares to graduate from Least Developed Country (LDC) status in 2026. It examines the implications of LDC graduation on tariffs, rules of origin, and regulatory compliance. It highlights both the risks of preference erosion and the opportunities associated with securing GSP+ status, upgrading value chains, and improving competitiveness. With the right policy reforms and deeper EU engagement, the report argues, LDC graduation can become a catalyst for Nepal’s transition toward a more diversified, higher-value, and sustainable growth path.