Nepal-India Trade Accord
NEPAL and India concluded bilateral trade
talks the other day in Kathmandu signing a 25-point umbrella agreement to facilitate
increased trade between the two neighbouring countries. The secretary level talks headed
by Commerce Secretaries from both the countries focused their attention to resolve some of
the issues relating to practical problems that have cropped up in the bilateral trade
between Nepal and India. As closest neighbours, Nepal and India have been enjoying best of
relations throughout the history and so is the trade. Officials from both the countries
meet on regular basis and discuss issues relating to bilateral trade and solve them
amicably for the best interest of both. Nepal-India Trade Treaty-1996 governs the
bilateral trade between the two countries, which is automatically renewed in every five
years. The recently concluded talks were the regular ones to resolve the problems that
come up during the implementation phase of the treaty. In the talks, Nepal raised issues
like extension of railroad to Birgunj, recognition of NS mark in India, improvement of
physical infrastructure at land border customs points and cooperation between the two
countries to establish export processing zones in Nepal. The talks concluded with the
25-point agreement on some pertinent issues regarding bilateral trade like expressing
resolve to make their best efforts for the finalisation of a railway agreement for
operating the Birgunj Inland Clearance Depot, regulation of vehicular traffic, enhancing
the process of agreement between Nepalese and Indian Bureaus of Standard and Metrology,
waiving the premium in the leased properties at Kolkota port and setting up lab testing
facilities at Raxaul and Gorakhpur for export of food items from Nepal. Above all both
sides agreed to hold further discussion to resolve other issues and problem in the
operational phase of Trade Treaty. As the talks aimed at resolving obstacles in enhancing
bilateral trade between the two countries, regular meeting and interaction would
definitely create an atmosphere of confidence for increasing volume of trade between Nepal
and India. Nepal has a huge trade deficit with India and efforts must be made to reduce
this deficit. As a big country with the economy several times bigger than Nepal’s,
India also needs to understand problem of Nepal and demonstrate a good neighbourly spirit
in reducing Nepal’s trade deficit and facilitate Nepal’s export trade to India.
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