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Kathmandu Monday December 04, 2000 Mangshir 19 2057.
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Informing correctly
I refer to your editorial titled "Take up the
matter" (November 15, 2000 issue). The product of the company mentioned in your
editorial does not meet the requirements of certificate of Nepalese origin and therefore,
has not been permitted duty-free access to the Indian market. The product is not banned
for import. If exported, it would fall in the normal category of imports where duty would
be leviable in accordance with Most Favoured Nation treatment. This is as per the
provisions of the Treaty of Trade 1996 signed between India and Nepal.
We entirely agree with you that the major objective of the
Treaty of Trade concluded between India and Nepal in 1996 is to encourage economic
development in Nepal by providing liberal import facility to Nepalese products. You will
agree that to achieve this, value addition in Nepal is to be encouraged. Since the coming
into force of the Trade agreement, Nepal’s exports to India have shown significant
growth. Nepal’s exports to India grew by 68.3 percent and 80.5 percent in the years
1997-98, 1998-99, 1999-2000 respectively. During the same period, growth of Nepal’s
exports to other countries was 7.5 percent, 23.6 percent and 25.3 percent. Increase in
foreign investment in Nepal following the 1996 Trade Treaty has also contributed to
Nepal’s development. Indian investment in Nepal alone accounts for 34.7 percent of
the total foreign investment in Nepal and for 40.2 percent of the employment generated
through foreign investment. These figures speak for themselves regarding the
implementation of the trade agreement.
I was surprised to see the report published in your newspaper
a day earlier on 14 November 2000. Your economic reporter would be aware that
preferential/free trade regimes - be it the Generalised System of Preferences under the
General Agreement on Trade and Tariff, the NAFTA of SAPTA or SAFTA- do have criteria for
certificate of origin. The Treaty of Trade of 1996 also provides for duty-free access to
Nepalese products on the basis of certificate of origin. In case of other articles made in
Nepal which do not fulfil the requirements for the certificate of origin, normal access on
the basis of MFN treatment is provided to the Indian market.
Your paper has a wide readership. I am writing this letter as
I know that you would like your readers to be correctly informed about the Treaty of
Trade.
Manoj K Bharti
First Secretary (PIC)
Embassy of India, Kathmandu |
