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EDITORIAL

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 Kathmandu Thursday November 23, 2000 Mangshir 08,  2057.


Orchestrated move

No one should be unduly surprised by the Indian accusation that Nepal has allowed itself to be used for dumping cheap Chinese goods in the Indian market. The manner in which Indian industrialists are making a hue and cry indicates that their real fear is competition with Chinese products, if New Delhi goes ahead with the proposed trade ties with Beijing. The fact is that in 1999, India agreed with China to open a trade route through Sikkim state. This apart, the present Indian game plan appears to be aimed at derailing the planned alternative trade route between Nepal and China’s Tibetan autonomous region. This new route will, no doubt, provide China better access to the Nepali market and vice versa. It may not be out of place here to recall that there had been similar official and unofficial Indian opposition prior to the construction of the Kathmandu-Kodari road in the 1960s. It appears that reluctance to end Nepal’s total dependence on it has not changed despite the new context.

The facts, as given out by the government, are enough evidence to show that the allegations against Nepal and Nepalese businessmen and traders are totally unfounded. Imports from China have in fact nose dived after the introduction of L/C system in imports from China. Since the start of the current financial year 2000/2001, imports from China has totaled just 477 million rupees. This volume is easily consumed inside Nepal itself. Obviously, this country cannot re-export goods that were never imported in the first place. The allegation is, therefore, merely a figment of their over fertile imagination. What India needs to investigate is the inflow of Chinese goods from China itself to four of the Indian states that border China as well as exports from Myanmar. Yet, what is disturbing is that these allegations are coming at a time when markets everywhere are opening up and consumers, wherever they be, are benefitting.

There is an unfortunate tendency in some Indian media to deliberately twist matters in order to get the uppper hand. The open border is an issue that must be settled for it has been rightly blamed for everything from cross-border criminal activities to ISI and RAW activities, to trade and security problems. If the open border is so bad in every way, why keep it open? India surely must learn to shut its mouth about the open border, or shut the open border that no one wants open.

The current India media tirade against Nepal is basically aimed at the trade treaty under which goods from Nepal can be exported to India without attracting duties. This may not have been to the liking of Indian businessmen. Hence, an excuse was cooked up in order to curtail Nepalese export. Ever since Nepal opposed the nuclear weapons testing by India and Pakistan as a threat to the region, India has not been happy. Since then, India has begun to find excuses to curtail imports from Nepal. The first step was the closure of its market to Kodak Nepal and this move sealed the fate of all other similar direct foreign investment ventures. Thus, the orchestrated protests from Indian industrialists is nothing, but an indication of New Delhi’s mind. It remains to be seen how the present crop of Nepali Congress rulers will deal with the issue, but it must deal with it in a manner that not only does justice to Nepal’s genuine cause but also ensures that this country’s image is not tarnished in any way.


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