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Kathmandu Tuesday July 31, 2001 Shrawan 16, 2058.
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NCC submits recommendations on Nepal-India
trade
Post Report
KATHMANDU, July 30 - In the light of the upcoming talks
between Nepalese and Indian government officials from August 1-3, Nepal Chamber of
Commerce (NCC) has pointed out the major problems that exist in Nepal-India bilateral
trade.
The NCC has submitted suggestions and recommendations to the
Ministry of Industry, Commerce and Supplies Sunday, including the issues that it feels
should be discussed in the Nepal India secretarial level talks.
According to the NCC report made available here today, NCC
has said that the government must try to expedite the customs clearance processes. In
addition, the meet should also address the problems faced by trucks which are stranded for
days at the border.
Also, the frequent delays caused in clearance due to
agitation by employees of various authorities on both sides of the border need to be
discussed. The existing shortcomings in the duty draw back system should also be
addressed, the NCC has recommended.
The NCC has also pointed out that several issues of
differences have aroused in the implementation of the 1996 Nepal-India Trade Treaty. It
has stressed for the talks to focus on issues that have given rise to such differences.
With a view to facilitate smooth foreign trade, the NCC has
urged with the government to push forward with the Railways Agreement. Once the railways
agreement is concluded, the foreign trade will receive an additional impetus slashing the
transit costs by around 40 per cent.
Included in the suggestions, the NCC has stressed on the need
to make necessary changes in the Treaty to further facilitate the Nepal-India trade. Also
the existing impediments in the smooth flow of agro-products to India should be sorted by
introducing a Single Window System in the Indian side.
India has levied countervailing duties on various commodities
manufactured in Nepal. This has eroded the competitive strength of the Nepali products in
the Indian markets vis-a-vis the Indian products. This issue should be raised in the
upcoming talks, the report states.
In the context of the potential accession of Nepal to the
World Trade Organization, and since India is already a member, issues such as that of
value addition and material content should no more be included in the talks, the report
says.
Although Nepal recognizes the Indian ISI mark in Nepal,
Nepal’s Nepal Standard (NS) mark is not recognized in India, which is creating
problems in the export of Nepalese products. The NS mark must be given due recognition by
the Indian side, the report says.
As regards the transit facilities, there is a One Time Lock
System in the transportation of products from the Indian ports to Nepal. However, the
provision has not been implemented. The meet must address this issue, the report says.
India has consented to provide Nepal with container yards in
Calcutta and Haldia ports for which even land has been allocated. Nepal must initiate
steps for constructing the same to facilitate foreign trade, the report says.
In conclusion, the report highlights that a high level
Dispute Settlement Committee needs to be formed for the purpose of looking into any trade
related disputes between the two neighbouring countries.
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