Bilateral Trade Talks
THE fourth round of Nepal-India trade talks was
held in New Delhi the other day with both sides agreeing to hold another round of talks in
the near future to finalise all issues and resolve problems relating to bilateral trade
between the two closest South Asian neighbours. The trade talks held at the joint
secretary level focused on improving and expanding bilateral trade and rooting out all
anomalies that both sides have pointed out. Nepal and India have always remained the
closest of partners and true friends. Both Nepal and India share many commonalities.
History, culture and nature bind these two nations together. Both the countries have
always been sensitive towards the problems of one another and have helped each other
whenever needed. The relation at the people’s level is a model and marked with
cordiality and co-operation. These are the hallmarks and unique characteristics of
Nepal-India ties. As they are very close geographically, problems sometimes crop up
between the two nations and have been resolved amicably in the spirit of good
neighbourliness. The same has been reflected in the trade talks between the two countries.
The points raised by both the sides in the trade talks are aimed at further consolidating
ties between the two nations and expanding bilateral trade. More than two-thirds of
Nepal’s trade is with India. It is worthwhile mentioning here that Nepal is a small
nation with a small economy while India is a huge economy. A small concession to Nepalese
exports on the part of India can be a big boost for Nepal. Such consideration by India,
however, will not affect a large economy like India. Moreover, Nepal has a huge trade
deficit with India. It is necessary, therefore, to narrow the growing trade deficit of
Nepal with India. This huge trade deficit can be narrowed only when India comes forth with
liberal and co-operative attitude towards Nepal’s exports. As both the countries are
now engaged in trade talks, it can be expected that the issues and problems would be
resolved in the next round of talks, which would give further boost to Nepal-India trade.
As both Nepal and India have adopted open and liberal economic policies, the bilateral
trade between the two countries also needs to be guided by them. Though India is raising
the issue of levying additional duties on some items exported from Nepal, this may not be
compatible with the spirit of Nepal-India Trade Treaty and the close and cordial relations
that exists between the two countries. As close neighbours, each needs to understand the
problems and sensitivities of the other. Hence, both the countries are expected to
translate this spirit into action when finalising the trade talks.
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