Canada established diplomatic relations with Nepal in 1965 and have since shared a longstanding relationship (Government of Canada, 2013). During the period 2008-2013, two-way trade ranged from $15 million to $23 million per annum (Government of Canada, 2013).  As shown in table 2, in 2014 Canadian exports to Nepal totaled approximately $11 million and Canadian imports from Nepal totaled $13 million (Government of Canada, 2015). Table 3 shows the trade relationship between Canada and Nepal over the past few years.

 

Table 3: Bilateral Product trade (Canada – Nepal).

Source: Government of Canada- Fact Sheet- Nepal. http://www.canadainternational.gc.ca/india-inde/bilateral_relations_bilaterales/fs_nepal_fd.aspx?lang=eng

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

By examining a chart of different countries GDP- per capita in 2015, Canada is listed as the 29th highest, with a GDP of $45,000, whereas Nepal is listed 199th on the chart with a GDP of $2,400 (Central Intelligence Agency, 2014b). Because Nepal’s GDP is very small in comparison to Canada’s, it is important that all of the products being exported from Canada to Nepal are cost effective.