TRANSIT TREATY RENEWAL
End Of Uncertainty
The renewal of Indo-Nepal transit treaty for next seven years puts to rest the uncertainties haunting the business communities
By SANJAYA DHAKAL
When India refused to let the transit treaty renew automatically in January, there were various kinds of apprehensions and rumors floating around in Kathmandu . From the fears of transit embargo like 1989 to India ’s new arm-twisting tactics, the move had generated different shades of apprehensions. And since the political relations between the two neighbors had taken a nosedive since February 1, 2005 , these apprehensions were not seen as entirely misplaced.
However, the relatively easier and smooth manner in which the treaty – which was only extended for three months in January – was renewed for next seven years, have put all those apprehensions and uncertainties at rest.
In a surprisingly welcome move, the officials of the two countries announced the renewal of the transit treaty between Nepal and India on March 31 without big changes.
The bilateral treaty that had expired on January 6, was extended by only three months by India plunging the entire business community in the country into uncertainty. Without the assured transit facilities from India , the land-locked country could have suffered a tremendous setback.
But last week, the officials made the welcome announcement saying that the treaty has been renewed till January 5, 2013 . Letters for the renewal of the treaty were signed by Bharat Bahadur Thapa, secretary at the Ministry, on behalf of Nepal government and SN Menon, commerce secretary, on behalf of Indian government.
More importantly, there doesn’t appear to be much changes in the original text of the treaty barring the addition of two new provisions. All 15 transit points, as per the earlier provisions in the treaty will remain open for movement of goods. The points recognized as the transit points include the Birgunj Inland Container Depot and the Fulbari route has been recognized as transit corridor linking Nepal with Bangladesh .
The two additional provisions in the renewed treaty include the clause of allowing “sensitive goods” to be transported only through seven transit points. Although the nature of “sensitive goods has not yet been clarified by the Indian government, they would now be permitted to move only through Kakarvitta, Biratnagar, Birgunj, Bhairahawa, Nepalgunj, Mahendranag and Inland Container Depot in Birgunj.
The second additional provision is the decision by Nepal to allow India to use Nepali territory for moving goods from one Indian destination to another. Nepal had been enjoying similar facilities in the past.
The business community has welcomed the renewal of the treaty. The Federation of Nepalese Chamber of Commerce and Industry (FNCCI), Confederation of Nepalese Industries and Nepal India Chamber of Commerce and Industry (NICCI) have welcomed the renewal of the Indo-Nepal Transit Treaty for seven years
The renewal of the treaty came days after Indian ambassador to Nepal Shiv Shankar Mukherjee had said that peace, stability and prosperity in Nepal is good for Nepal , India and also for Indo- Nepal relationship. Speaking at a program at the Reporters’ Club on Mach 29, the Indian envoy had said, “We will not be found wanting in anyway to cooperate with Nepal, to work together with Nepal, to resolve the difficulty facing Nepal and having resolved them, to move as partners in development for a betterment of everyone here and for our own people. This is the fundamental milestone of India ’s foreign policy towards Nepal .”
He also said that the Indian government was continuing its development assistance to Nepal so as to help in the latter’s economic development. “It is a conscious decision of the Indian government that nothing we do shall negatively affect the people of Nepal, which is why today we have cooperation projects in 61 districts in Nepal totaling an outlay of 41 crore rupees. That is the commitment that we will continue to meet.”
The envoy had added, “We look forward to the time when you, the people of Nepal , take step to gather in your destiny, and move the nation forward towards peace. We can, then, with all your other friends strengthen to help in the enormous tasks that will be necessary for rehabilitation or getting back to development or undoing the harms that has been done in all these years of uncertainty.”
