South Asia Watch on Trade, Economics and Environment (SAWTEE)

22/09/2026

South Asia Watch on Trade, Economics and Environment (SAWTEE), with support from the International Labour Organization (ILO), organized a policy dialogue titled ‘Institutional arrangements for integrated development of textile and clothing sector’ on 22 September in Kathmandu. The event sought to build a shared understanding among stakeholders on the need for an integrated institutional arrangement to strengthen Nepal’s textile and clothing sector, which spans diverse subsectors but shares common value-chain linkages.

Participants pointed out that the institution's mandate and governance structure required careful design. Several stressed the need for clarity on whether the body's primary role should be coordination or promotion, and called for trade union representation, noting unions could contribute to improving worker productivity rather than being seen as adversarial to business. Others stressed that the council needed meaningful private-sector representation and real decision-making authority, cautioning against it becoming "another bureaucratic institution" burdened by administrative hurdles.

16/09/2026

SAWTEE with support from the International Labour Organization (ILO) organized a workshop titled ‘Strengthening Nepal’s felt exports: Assessing opportunities and challenges’ on 16 September 2026.
The programme explored the current state and export potential of Nepal’s felt industry including opportunities for accessing international markets and market diversification, strengthening competitiveness, as well as key challenges related to finance, labour, production, logistics, and raw material availability in the context of Nepal’s impending graduation from the least developed country (LDC) status. The discussion sought to identify concrete recommendations for strengthening the felt sector and harnessing its export potential.
Participants highlighted the need for the diversification of raw material import sources, export destinations, quality assurance certificates, a testing lab within the country, infrastructure readiness, and labour upskilling and availability, among others.
The programme brought together policymakers, producers and exporters of felt products, stakeholder associations, and researchers.
International Labour Organization - ILO Nepal

11/09/2026

High logistics costs, limited cross-border payment options, regulatory hurdles and weak digital readiness keep Nepali products off global online marketplaces.

A study by the South Asia Watch on Trade, Economics and Environment (SAWTEE) and the International Labour Organisation on Nepal’s garment sector shows that adopting e-commerce could increase exports of high-quality readymade garments by 25 to 35 percent.

“The export potential of garments shows that there is substantial potential for selling goods through e-commerce platforms,” said Ksh*tiz Dahal, senior research officer at SAWTEE.

International e-commerce platforms do not make advance payments until goods are sold, said Dahal. Nepal, however, cannot export goods to third countries without an advance payment certificate. “So, the advance payment system needs to be reformed,” he said.

De minimis provisions, which exempt shipments below a specific threshold from destination tariffs, could serve as a critical buffer for business-to-consumer exports, helping safeguard Nepali products as the country prepares for LDC graduation, he said.

Amendments to the Postal Act, 1963, Customs Act, 2007, and Export and Import (Control) Act, 1957, among others, have become important to ensure that the legal framework recognises digital trade, said Ravi Sainju, a trade expert and Vice chair at SAWTEE.

National rules, regulations and trade policies must be formulated in an integrated manner—from production and supply chains to the import of goods and their delivery to consumers—taking into account modern digital realities rather than being developed in isolation, he added.

High logistics costs, limited cross-border payment options, regulatory hurdles and weak digital readiness keep Nepali products off global online marketplaces.

11/09/2026

In his latest perspective paper, Dr. Paras Kharel, Executive director at SAWTEE, highlights how the destructive floods of August 2026 along Nepal’s primary northern transit route present a critical test for China’s Belt and Road Initiative (BRI). He argues that the future relevance of the BRI hinges on prioritizing resilient, all-season Sino-Nepali connectivity over grander geopolitical ambitions.

Download paper:https://sawtee.org/publications/Rasuwa%20floods_BRI.pdf

10/09/2026

" Resilience is an economic infrastructure, not merely an engineering standard."

Mr. Madhu Marasini, Senior Fellow at SAWTEE, highlights how the destruction at the Rasuwagadhi–Kerung border exposes critical vulnerabilities in Nepal’s overland connectivity with China. He calls for urgent emergency trade continuity, climate-resilient infrastructure, and digitized border management.

Read article: https://sawtee.org/category/opinion-in-lead/nepal-china-trade-after-the-bhotekoshi-disaster-need-for-resilient-connectivity

07/09/2026

SAWTEE is delighted to announce the launch of its 2026 Media Fellowship, a unique opportunity for Nepali journalists to explore Nepal’s debt landscape beyond oversimplified and attention-driven figures such as per capita debt.

Are you a journalist interested in looking beyond surface-level narratives to examine Nepal’s public debt landscape? This fellowship offers you the opportunity to explore the broader dimensions of public borrowing, analyze foreign-funded infrastructure projects, and deliver evidence-based reporting that enriches public discourse.

📅 Application Deadline: 04 October 2026
📌 Apply Now: https://sawtee.org/career

07/09/2026

On 26 August 2026, Nepal suffered one of its most devastating flash floods. SAWTEE stands with the nation in grief, extending our deepest condolences to all who lost loved ones.

Our hearts are with the affected families and communities, including those still waiting for news of their loved ones.

04/09/2026

Key insights from the interaction programme, “Unlocking exports through e-commerce” organized with support from the International Labour Organization (ILO) Nepal on 2 September 2026 Kathmandu.

Participants highlighted the need for improved facilitation of e-commerce exports, simplified cross-border digital payments, greater market diversification, and improved access to digital platforms. Discussions focused on key challenges, including digital payments, customs and logistics, digital literacy and market access.

04/09/2026

In August’s commentary, Ms. Dikshya Singh, Programme Coordinator at SAWTEE, analyzes the August 2026 Rasuwa flash flood—tracing its origin near the Nepal–China border down to the Terai plains. She details physical damage to border trade routes, port infrastructure, and regional hydropower, while examining economic impacts like climate reparations and community resettlement.

Read article: https://sawtee.org/category/commentary/anatomy-of-a-himalayan-disaster-the-rasuwa-flood-2026

04/09/2026

Newsletter out!

For August's, Opinon in lead, Dr. Paras Kharel, Executive Director at SAWTEE, explores how catastrophic floods in Rasuwa have severed key Nepal-China trade links and destroyed vital land-port infrastructure, underscoring the urgent need for a war-footing reconstruction effort and resilient border trade corridors. While in commentary, Ms. Dikshya Singh, Programme Coordinator at SAWTEE, analyzes the August 2026 Rasuwa flash flood—tracing its origin near the Nepal–China border down to the Terai plains. She details physical damage to border trade routes, port infrastructure, and regional hydropower, while examining economic impacts like climate reparations and community resettlement.

For news and other updates of August: https://substack.com/home/post/p-213531624