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Kathmandu Tuesday January 08, 2002 Paush 24, 2058.
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Entrepreneurs euphoric over
Vajpayee’s remarks
Post Report
KATHMANDU, Jan 7:The Nepali business community
has hailed the latest assertion of the Indian Prime Minister Atal Bihari Vajpayee that the
1996 Nepal-India Trade Treaty would be renewed at the satisfaction of both the countries.
"I am confident that there will be a
satisfactory solution (to the impasse over the renewal of the 1996 bilateral
Treaty)," Vajpayee had said. The Indian Premier was talking to journalists before
leaving for India after the conclusion of the eleventh summit of the South Asian
Association for Regional Cooperation (SAARC) on Sunday.
He had also said that the Treaty, if need
arises, would be extended further. It may be recalled that the Treaty was set to expire on
December 5, 2001. However, the Treaty was extended by three months at the behest of
Vajpayee following the declaration of a state of emergency in Nepal.
Nepali businessmen talking to The Kathmandu Post
today said that the Indian Prime Minister’s remarks over the Treaty renewal is a sign
of the positive Indian intention to settle the issues in the most amicable manner.
"The statements made by the Indian Premier
shows that India is ready to address all concerns of the Nepali business community.
Vajpayee’s remarks are highly positive," said Rajendra Kumar Khetan, Second Vice
President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI).
"But it is necessary that the official
renewal is done before the expiry of the March 5 deadline. We are now truly optimistic
that issues of contention would be resolved amicably," added Khetan. Vajpayee had
said that there are some issues of concern to India, which needs to be worked upon.
The Indian External Affairs Minister Jaswant
Singh on the same occasion had clarified that the Indian concerns was particularly in the
increase in the exports of acrylic yarn and vanaspati ghee from Nepal to India.
Singh had said that the two Nepali products were
having an untoward impact on the Indian industries. India had initially shown serious
concerns over the increasing exports of five items including zinc oxide, steel pipes and
copper winding wires, apart from acrylic yarn and vanaspati ghee.
"The Nepali business community is aware of
the Indian concerns. The issue needs to be settled in a manner that would be beneficial to
both sides. However, putting the Nepali items (vanaspati ghee and acrylic yarn) into the
negative list is not a good option," said an analyst.
President of the Nepal Chamber of Commerce
(NCC), Rajesh Kazi Shrestha also appreciated Vajpayee’s assurances to seek a solution
to the current impasse in the renewal of the Treaty in the most satisfactory manner.
However, he added that the Treaty’s
official renewal should not be delayed. "Delay in the renewal of the Treaty would
only prop up the uncertainty in the business circle," he said.
Similarly, President of the Nepal-India Chamber
of Commerce and Industry (NICCI), Arun Kumar Chaudhary said that the Treaty needs to be
renewed viewing the interests of both the nations. "The assurances of the Indian PM
is laudable. However, in order to achieve a milestone, and to create a win-win situation,
much has to be done even from the Nepali side."
Though the volume of trade between Nepal and
India since the signing of the landmark 1996 Treaty is on the rise, the trade deficit has
barely changed. Trade gap between the two countries presently stands at around Rs 19
billion in India’s favour. While exports from Nepal to India in the fiscal year
2000/01 stood at Rs 27 billion, imports during the same year touched Rs 46 billion.
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