Nepal-India Trade Treaty
Automatic Renewal Or Termination

By Bishwambher Pyakurel

Continued

SURPRISINGLY, there is no definition of Surge in the treaty. In such a situation, since Vanaspati Ghee is imported in India only from Nepal, any amount of such import can be termed as Surge. Article 19 of GATT has defined that imports from a developing country exceeding the level of 3 per cent of total imports of that commodity in importing country is export Surge. The total export from Nepal to India does not come even within a range of 0.1per cent of India’s total import. As said before, none of the alleged exports item such as vegetable ghee, acrylic yarn, GI pipes, zinc oxide, and copper wire exceeds the given limit. It actually ranges from 0.5 to 3.0 per cent. And surprisingly, as against India’s allegations such export items involve elaborate manufacturing process, which brings the raw material into substantial transformation meeting the standard of GATT for the rules of origin as well as the spirit and purpose of the 1996 trade treaty. In reality, vanaspati ghee involves 13 processes, zinc oxide 8, acrylic yarn is manufactured under 13 stages, GI pipe/Iron pipe 12 and normal copper wire processing takes 9 stages. The technical justification of which should be given to Indian counterpart to avoid misunderstanding.

The total investment made in the production units of Surge items comes to Rs. six billion. Total employment generated by these units stand at 15,000 employees. The contribution to GDP comes around 2%. This scenario very well responds to India’s major concern that if the 1996 agreement has positively contributed to industrial development in Nepal?

The logical argument for counteracting Surge is the protection of domestic industries from the rising import through selected economic instrument. Anti-dumping duty is such instrument. India has already imposed anti-dumping duty in zinc oxide. Luxury tax is imposed in West Bengal for tea; an entry tax is imposed in vanaspati ghee in Uttar Pradesh. Series of additional taxes are being imposed contrary to the spirit of the treaty. In reality, anti-dumping duty can be applied when the import accounts for 25% of the total production of the like article by the domestic industry. It is not such case created from Nepalese exports. India pays convertible currency to China, Taiwan, France, Germany, Hong Kong, Indonesia, Italy, Japan, Korea, Malaysia, Thailand, Turkey and others to import most of the similar alleged items under the definition of Surge from Nepal. The quantity supplied from Nepal is less as compared to the imports from most of the above mentioned countries.

Unauthorised trade is another important issue where India shows its serious reservations. It is open secret that inspite of several measures taken by both countries, the smuggling in some quantities is still taking place. Nepal should consider making adjustment in increasing tariff to those items, which have significant potential from smuggling to India. However, India should not also forget to regularise its border adjoined to countries other than Nepal since it is also reported that there is heavy smuggling taking place from other countries as well. Such open border access has not only injured Indian industries alone. It is widely reported that because of the open border and easy access of Indian textile goods into Nepal, nine large-scale industries are already closed and remaining seven industries are in the verge of collapse. This has constituted Rs. 15 billion losses invested in those industries. As a result, 100,000 workers have lost their job. Since heavy subsidies are provided by the government in Indian agriculture sector, Indian agriculture products are flooding into Nepal whose market price is cheaper than Nepal’s cost of production. What lesson then we should really get from these eventualities? Putting negative impact aside, in totality, as available statistics reveal that 1996 treaty has been extremely beneficial to both the countries; governments of Nepal and India should promote the positive impact of the treaty through mutual consultation in an environment of trust to each other.

Conclusion

Several issues such as the definition of surge, consensus building in the rules of origin and methods for calculating value-addition, and an agreement regarding the injuries to the industries in respective countries were not resolved during secretary level meeting held in Kathmandu immediately after Indian foreign minister’s visit. Second round of joint secretary level talk in New Delhi, though delayed, did not also produce any fruit. The Indian side has already notified His Majesty’s Government of Nepal showing their desire to modify the treaty. Except for our expectation that some logical understanding will be reached, no progress has been achieved so far in guaranteeing the automatic renewal of the treaty. The Indian authority in their letter sent to Nepal in August, 2001 has clearly mentioned that their intention should be taken in accordance to the provision remained under Article XII which says, the treaty shall remain in force upto December 5, 2001 and shall be automatically extended for further periods of five (5) years at a time, unless either of the parties gives to the other a written notice, three months in advance, of its intention to terminate the treaty. It clearly indicates no possibility of automatic renewal since written notice for necessary adjustment is given by India. The secretary level talk is going to be held on 18 and 19th of October, 2001 in Delhi but without any clarity on the issues raised during Kathmandu and Delhi meeting. It is thus suspected that India will prefer to enter into an agreement on the basis of Most Favored Nation’s concept similar to what we had during India-Nepal Trade and transit Impasse in 1989. If this happens, there will be an end of an era designated as ‘age-old socioeconomic and cultural ties’ between two friendly neighbours. Therefore, since the case seems more of a political in nature, it necessitates dealing politically at higher level to safeguard the interest of both Nepal and India. The solution would be to work out the modality of agreeing to the benefit and cost of each important issue on comparative advantages basis and enter into the agreement to continue existing treaty without any change in its fundamental structure.

(Concluded)

Baikuntha’s Kathmandu-Muktinath Run

By Gyan Rai

BIRTHDAYS, in many societies, cultures and religions, are very special occasions. As such, in each society birthdays are celebrated as per the prevailing societal, cultural and religious practices. In whichever way or manner a birthday is marked, the underlying meaning is the same—herein, the celebration of life. Yes, moles, warts and all.

For life, to all humans, not only means passing through different phases and stages of physical, mental, intellectual and spiritual development but also garnering all kinds of experiences. But more particularly those that would stand them in good stead while they, to borrow a line from William Shakespeare, "strut about the stage". In other words, life is verily an accumulation of a human being’s experiences, be they bitter or sweet, bad or good, dull or interesting, invaluable or priceless.

However, for an ordinary human being on earth—in other words, for the vast majority—life is definitely full of struggles, punctuated by a few moments of joy.

But then, since life definitely cannot be lived by only dwelling on its less brighter (or darker?) side, a human being naturally opts to celebrate life by highlighting its more brighter side. And what better time and occasion than to mark it during one’s birthday?

It could be for this very desire of a human being that the world has seen and heard humans celebrating their birthdays in unique and interesting ways. (Of course, the same could appear to be bizarre to others!). Amongst these unique cases of birthday celebrations so far, that of the Nepal’s aging war-horse, Baikuntha Manandhar, would surely take the cake. Yes, Baikuntha Manandhar, to mark his 50th birthday, is all set to lead a team of four marathoners for a 300-km. run from Kathmandu to Muktinath. The epic marathon run of Baikuntha’s life is slated to begin on November 21 from Kathmandu and end in Muktinath on November 27.

This means that Nepal’s ace marathoner, Baikuntha and his three colleagues, Ram Krishna Maharjan, Bimala Ranamagar and Ratna Tuladhar would have to run at least 50 kilometres a day right from November 21 in order to complete their set target of reaching Muktinath on November 27.

Of interest to note is the age of this motley team of four marathoners. While Baikuntha has seen 49 summers, Ram Krishna, a marathoner of yesteryears, has experienced 44 monsoons. On the other hand, Bimala, the only lady marathoner in the team, has witnessed 28 Springs. She represented Nepal in the 1996-Atlanta (USA) Olympics as well as in the 8th SAF Games organised in Kathmandu in 1999. Ratna Tuladhar, a noted high altitude marathon runner and the fourth member of the Kathmandu to Muktinath marathon run, has seen 44 winters. In other words, while the seniormost in age is Baikuntha, the juniormost is Bimala.

But then, though age is definitely one of the factors that could hold back an athlete from giving his/her best performance, Baikuntha, 49, has enough experience and endurance up his running suit’s sleeves to ensure that he keep his promise of marking his 50th birthday in Muktinath. For, after all, running a 300-km. marathon is definitely not like walking down New Road. That too, in altitudes ranging from over 4,000 feet to 8,000 feet. Especially when one considers the altitudes of some high passes that this team of four marathoners will surely have to cross while on their run towards Muktinath.

Furthermore, the famous four, being marathoners, know the value of preparing their legs, including their lungs, for the forthcoming 300-km. run. It is said that they are running each day from one end of Kathmandu Valley to the other end so that they not only build up their endurance, but also their legs and lungs. And, not forgetting in gearing up their will and determination since each of them need to run at the least 50 kilometres per day if they want to realise their joint venture of reaching Muktinath on time.

Considering the fact that Kathmandu Valley is situated at least one mile above sea-level, the famous four’s daily practices would be beneficial in preparing them for the forthcoming challenge.

For, ever since running the marathon became a famous event not only during the four-yearly Olympic Games but also in other similar marathon events, all serious competitors have made it their aim and duty to train in rugged, high-altitude terrain. One likely reason for this could be that nowadays, almost all the marathoners who are not only grabbing the Olympic Games’ marathon gold but also handsome purses in other similar events in America and Europe hail from countries having rugged terrain situated at high-altitudes.

Take the case of Ethiopia. It’s famous marathoner bagged two golds consecutively in two Olympics. Or, more recently Kenya, which not only seems to be the home to gold grabbing Olympics marathoners but also of long-distance runners. So much so that Kenyans are said to be running away with the prized trophies and awards in almost all long-distance running events in the United States and Europe. And to make sure that Kenyans do not think that marathon and long-distance running events are their God-given turfs there are the Algerians. Although Algerians have yet to make their mark in the Olympics marathon event, they have emerged as formidable long-distance runners.

However, this is not to say that marathoners and long-distance runners who had earlier made their marks in their respective events in the Olympics or similar other games were lesser marathoners or long-distance runners. No doubt, they were superb in their sporting events in their times. It’s only that more marathoners and long-distance runners having the required qualities to make them what they are now have emerged. And, in the bargain, are giving the earlier marathoners and long-distance runners a run for their gold-grabbing headlines

But all this still leaves some intriguing queries unanswered: why does someone want to be a marathoner, if not a long-distance runner? And what does it take to make one a dedicated and formidable marathoner or a long-distance runner? Maybe the famous four could provide us with the possible answer(s) since they are all geared and psyched-up to run a 300-kilometre marathon from Kathmandu to Muktinath within five days.

Whatever be the answer(s) or whether or not these famous four marathoners manage to reach Muktinath within their stipulated time, their common desire is definitely in keeping with the Olympic motto and credo. The Olympic motto is " Cititus, Altitus, Fortius" (or Faster, Higher, Braver). And its credo is "The most important thing is not to triumph; but to struggle. The essential thing is not to have conquered, but to have fought well".

But whether the present day’s Olympic credo and motto are the same as that of the Olympiads in ancient Greece is quite another query and aspect. Still, the spirit is undoubtedly the same. If Baron Pierre de Coubertin, the famous French educator, revived the Olympic Games in 1986 to foster better understanding through the love of athletics, then the ancient Greeks held their Panhellenic celebrations ever four years to ensure peace among the various Greek city-states during that time. The ancient Greeks first held their Olympiads near a small town of Olympia in 776 B.C. and is said to have consisted merely of a 200-yard race. Later, the games, just as they are doing presently, started to expand.

Disappearing Technology

By Bhimsen Thapaliya

Massive wooden mills were used in the rural areas of Nepal to extract oil from seeds. Installation of such mills would take a ceremonial form. The huge block and logs of hard timber needed for the construction were carried by scores of ablest villagers from the woods. The loads were so heavy people could be crushed to death in case the binding ropes snapped. They chanted Hoste and Haise when they used their full power of muscles amid sweating and panting. They even pronounced obscene words. They said that such utterances made their burden lighter and increased the stamina of the bearers.

Finally, the heavy materials would arrive at an open ground somewhere in the centre of the village. The carriers showed their scars, scratches and reddish-blue marks on their shoulders at the end of the heavy task. The most skilled carpenter of the village would be called to give the final shape to the mill. A hole was carved into the immense block into which a long and heavy log would be fitted to crush the oilseeds. Wooden frame driven deep into the ground held the massive timber mill stable and firm. Fixing of the oil mill would take weeks. The inauguration was marked by a worship. The procedure of oil extraction involved turning the heavy pole round and round until the oilcakes turned dry. Though the process was slow and demanded muscle power, it did not cause pollution. Though the mill was massive and clumsy, it functioned for over a decade except for the need to replace the smaller components. The technology was simple as no factory made accessories, even nails, were used. The whole structure was designed with timber, stones and ropes.

However, the wooden oil mill, locally called Kol, is now a story of the past. Noisy and smoke emitting diesel engine mills stand in their place now. Today’s children, in some areas have no opportunity to see even the wreck of the wooden mills. Simple rural technology that served the daily purpose of the folks is gradually disappearing. The new technology saves time and energy, a reason that has prompted many to go for them. If the present trend continues, the wooden mills and many other traditional technologies will be found only in museums in a few years to come.

Round stone mills or Jato have been used for ages for flour milling. Wooden mills for milling rice were also found in every household. Though they demanded muscle power and took longer time to operate, they were non-polluting and hygienic. Doctors reco-mmend rice milled in a Dhiki over the rice milled in a modern machine. The latter is blamed to remove the most nutrient outer coating of rice grains.

In the old days, the houses were lit with pine torch or oil fed lamps. Now they have been replaced by kerosene lamps. Some pockets of the country have now gone to make use of solar power by installing solar panels. Though it is a cleaner and brighter options for sunny areas, many people find it economically non-viable.

In the part, houses used wooden containers and vessels. It is still the norm that dairy food must be preserved in a wooden container. In recent days, the village craftsman who carve the vessels, locally called Chunnara are rare breed. It is a matter of a generation or two back when people used Jhulo Chakma, ( a piece of iron struck against flint to create sparks) to make a fire. It was replaced by occasions by rubbing two sticks of Bhakkemla plant is still heard though it may appears as a fairy for today’s children.

Wooden trunks were in use to store household goods. They were made without using nails. Now they have been dislodged by steel cupboards.