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Kathmandu Saturday September 29, 2001 Ashwin 13, 2058.
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Nepal-India trade talks begin in Delhi
Both sides agree to identify ‘Export surge’
By Bijay Ghimire
NEW DELHI, Sept 28 – Nepal and India began crucial talks here today to
narrow down their differences on the renewal of the Nepal - India Trade Treaty 1996 that
is due to expire in December.
The two sides agreed to define "rules of origin" of Nepali products
and "export surge" to include it in the treaty.
During the talks, the Indian side raised the issues related to the
"rules of origin" and "export surge" as the prime issues. After two
rounds of intense negotiations, both sides agreed to discuss the issue in the next
negotiation on Saturday. The Indian side tried to include the clause of value addition
along with the new understanding, sources said.
Despite the flexibility in the talks, there is likelihood of a dispute over
definition of "export surge" and "rules of origin". "This is so,
say trade and political commentators, because most of the India’s trade policies are
guided by the South Block.
The 1996 Trade Treaty has clearly stated the need of the Certificate of
Origin while exporting Nepali products to India on the duty free regime.
The treaty also authorises the Nepali side to issue the certificate, which
has been done by the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
Talking to The Kathmandu Post, Puroshottam Ojha, Leader of the Nepali
delegation, stressed that the agreement to define the "rules of origin" and
"export surge" doesn’t mean that Nepal has accepted the Indian proposal of
value addition.
He also said that each side will put its proposals on the issues and,
according to the understanding reached, the two sides will try to sort out the differences
through the proposals.
The Indian side showed dissatisfaction over the current procedures of issuing
Certificate of Origin and demanded its revision. The most encouraging sign was that India
realised not to prolong the dispute on the Nepal-India Trade treaty.
The Nepali delegation also met with Praveer Sen Gupta, Indian Commerce
Secretary, today and during the meeting Gupta assured the Nepali side that India intends
to renew the trade treaty by solving all the outstanding issues, an official said.
The Nepali side has also raised the issue of various state government taxes
and anti-dumping duty levied on Nepali goods, which, Nepal claims, is against the letter
and spirit of Nepal India Trade treaty.
"We clearly told them that the imposition of anti dumping duty is a
violation of the treaty but the Indian side didn’t answer clearly," said a
Nepali delegate.
The current round of talks is extremely important for Nepal as the fate of
the Nepal-India Trade Treaty depends on the outcome of the talks. The treaty accords
Nepali goods preferential access to the Indian market.
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