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Kathmandu Sunday September 30, 2001 Ashwin 14, 2058.
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Talks produce no concrete results
By Bijay Ghimire
NEW DELHI, Sept 29 – The Nepal-India inter- governmental
joint- secretary level trade talks that began here Friday following the recent Indian
demands for review and revision in certain provisions of the Nepal-India Trade Treaty
concluded without any concrete consensus today.
However, India will, within the next month, put up its
demands for inclusion of provisions on ‘Rules of Origin’ and ‘Export
Surge’ in writing. It was agreed to discuss the matter at the next round of talks
that would be held between the commerce secretaries of the two sides within the next one
month.
India on Friday had urged upon the need to define rules of
origin and export surge. Though the talks were forwarded on Saturday, nothing could come
out of it. "The talks concluded without any understanding, except that the issues
would be carried over for discussion at the secretarial level," said Purushottam
Ojha, leader of the Nepali delegation, talking to The Kathmandu Post.
"India has agreed to give its proposals in writing as
soon as possible. The two sides have agreed to hold a secretarial level talks within the
next one month," said Ojha.
However, another member of the delegation, on conditions of
anonymity, said that the two sides must first discuss the matter at the political level to
narrow down the existing differences.
The latest issues raised by India are not much different from
that raised during the trade talks held in Kathmandu in the first week of August.
"Failure of the talks due to staunch stands taken by the two sides necessitates for a
round of talks at the political level," he said.
Members of the delegation said that the Indian side did not
reply to the concerns raised by Nepal over the imposition of anti-dumping duties on zinc
oxide and the slapping of local duties and taxes on various imported products by the state
governments. They argued that such duties were imposed to pressure Nepali to revise the
current Treaty.
"The Indian side during the talks this time did not talk
openly," delegates said. However, they said that the Nepali delegation also stood
fast on its grounds arguing that the basic spirit of the Treaty should remain intact.
"We listened to the proposals of the Indian side. We are
yet to reply, which we will do only after receiving their proposals on rules of origin and
export surge in written," said Ojha.
The Nepali delegation on Saturday also met representatives of
the Federation of Indian Chamber of Commerce and Industry (FICCI) and the Confederation of
Indian Industries (CII).
Representatives of CII expressed hopes that the suggestions
made by the Joint Economic Council (JEC) of the CII and the Federation of Nepalese
Chambers of Commerce and Industry (FNCCI) to the Indian government were taken into account
by the two governments.
However, the Indian side at the talks on Friday did not much
regard the suggestions of the JEC. The JEC had submitted its recommendations to both the
governments almost three weeks back.
However, Indian entrepreneurs during the Nepali
delegation’s meet with FICCI showed their concern over the increasing exports of
acrylic yarn and vanaspati ghee arguing that the Nepali exports were injuring their
industries. They pressed on the need to include provisions in the Treaty that would
curtail the export of these two Nepali products.
India had, during the trade talks in Kathmandu in the first
week of August, however, expressed its concern over the increasing exports of five
products, which includes steel pipes, copper twines and zinc oxide, apart from acrylic
yarn and vanaspati ghee.
India had argued that the five products attracted the surge
clause in the Treaty that allows change in the provisions of the Treaty for curtailing
exports of those products under the surge net.
It was only after the failure of the secretarial level trade
talks between the two governments in Kathmandu in August that India proposed for review
and revision in certain provisions of the Treaty, apparently to contain the increase in
exports from Nepal to India.
The Treaty would have been automatically renewed had the
Indian side not sent its formal communication. The Treaty contains a provision that says
that the Treaty would continue in its present form until any one of the contracting
parties calls for its review three months before the date of expiry. The Trade Treaty,
first signed in 1991 and later modified in 1996, is set to expire this December.
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