Economic Freedom of the World Country Audit: Freedom to Trade Internationally

This working paper takes stock of Nepal’s performance in the “Freedom to Trade Internationally” section of the Economic Freedom of the World Report. It analyses Nepal’s tariff regime and argues that high logistical costs, combined with poor infrastructure, limited testing and certification capacity, complex documentation requirements and tariff structure constrain Nepal’s potential to engage in trade. It also suggests some key policy reforms, particularly those that would reduce the cost of compliance and clarify inconsistencies across legislation regarding the role of freight forwarders.