1.1.  Nepal's Second Trade Policy Review (TPR) at the World Trade Organization (WTO) covers the period between 2012 and 2018. Nepal joined the WTO on 23 April 2004 as the first least-developed country (LDC) through the full working party negotiation. Since 2012, Nepal has undergone significant transformation, which includes changes in the political system following the promulgation of the Constitution of Nepal in 2015. The review is being carried out at a time when Nepal has entered a new era of stability concluding its long political transition after a decade-long conflict. In this process, Nepal has set an exemplary model of conflict resolution through a unique home-grown and inclusive peace process.

1.2.  The current Constitution of Nepal was promulgated on 20 September 2015 through the Constituent Assembly. The Constitution laid a new foundation for Nepal's socio-economic transformation. It embraces the principles of democracy, federalism, secularism, and inclusiveness. It has provisions of three levels of government: federal, provincial and local. Accordingly, there are seven provinces and 753 local levels. Governments have been formed at all three tiers after the successful completion of elections in 2017.

1.3.  The Government of Nepal (GoN), which enjoys two-thirds majority in the Parliament, has a long-term goal of "Prosperous Nepal, Happy Nepali". To achieve this goal, the Government has set objectives of achieving high economic growth, balancing and strengthening the economy, and making it more inclusive and just, in the interest of all Nepali. The overall focus is on policies that promote innovation by developing a national economy to encourage trade, investment, production, and creation of employment.

1.4.  The Constitution promotes the role of the private sector in the economy and envisages that Nepal shall pursue policies to maintain competition and fairness in the market. In particular, the Constitution encourages foreign capital and technological investment as well as development and expansion of industries in areas of comparative advantage. This economic ecology is backed by the Constitution which provides a comprehensive list of thirty-one fundamental rights, including economic, social and cultural rights. The Constitution, therefore, is instrumental in fixing the politics and bringing the focus on economic development agenda through the realization of Nepal's long-awaited goals and aspirations.