Nepal, B'desh agree to enhance bilateral trade

By A Staff Reporter

KATHMANDU, Aug. 27: Bangladesh has agreed to provide warehouse facilities for Nepalese cargo at Mangla port, besides providing a 50 per cent rebate for goods on transit. It has also agreed to extend the 'free time' to clear the cargo from the port.

The first ever Commerce Secretary level talks between Nepal Bangladesh that concluded today reached an agreement on this. The 2-day meet also agreed to come up with the necessary infrastructure to develop a land port at Banglabandh by December. Bangladesh will also consider Nepal's demand that it open up its market for Nepalese agricultural products.

The meet ended today with an agreement to expedite trade between the two countries, with particular emphasis on opening new areas of trade. Nepal's export to Bangladesh consists of lentils, while Nepal imports jute products, machinery and fertiliser.

Despite the geographic proximity, both the nations have not been able to exploit the trade potential to the maximum. Trade between the two countries is only about Rs. 800 million. Lack of physical infrastructure, banking and warehouse facilities at the Bangladeshi border point of Banglabandh has been hindering trade between the two countries.

Talking to the media after the meeting, Secretary at the Ministry of Industry, Commerce and Supplies Bhanu Prasad Acharya said that the meeting was very fruitful in gearing up bilateral trade and tourism between Nepal and Bangladesh. As Nepal and Bangladesh face similar problems, they should make optimum efforts to expedite trade, he said.

Secretary Acharya said that the talks also accorded priority to promoting relations between the private sectors of the two countries.

Commerce Secretary of Bangladesh Suhail Ahmed, who led the Bangladeshi delegation, also emphasised the need to enhance the trade volume between the two countries. Secretary Ahmed said that trade and transit were importance to enhance the volume of trade.

A press release issued simultaneously by the Ministry said the meet agreed to finalise the agreement on transportation between the two countries in the near future. Bangladesh has also agreed to construct a bridge over the Rupsa River within two years to expedite trade.

During the meet, both countries agreed to hold trade fairs to promote trade. Air services from Bhadrapur, Biratnagar of Nepal to Shahidpur of Bangladesh will be initiated.

Nepal, on its part, has agreed to study the proposal of Bangladesh to carry out trade on the basis of Accounts / Counter Trade, the press release said.

Chaotic monsoon: Floods, drought play havoc

By Bhimsen Thapaliya

KATHMANDU, Aug. 27: This year's monsoon pattern has been 'chaotic' with the eastern region witnessing massive rain-induced catastrophes while the western sector continues to suffer severe spells of drought.

With the eastern and western parts of the country experiencing two different weather extremes, weather experts suspect climate change to be behind the drastic shift in the monsoon phenomenon.
"This year's monsoon played chaos since its arrival," says a report prepared by the department of Hydrology and Meteorology.

"If we look at the monsoon performance of last year, it was the western region that experienced more active precipitation. This year's trend is just the opposite, indicating a marked shift in the role of the monsoon," said Rajendra Shrestha, forecaster at the Meteorological Forecasting Division based at Tribhuvan International Airport (TIA).

Though research is needed for accurate information, we believe climate change is behind the unusual monsoon rains, Shrestha added.

Thunderstorm clouds may also be responsible for the short lasting, but violent, rains. These are the special high altitude clouds that bring rains with catastrophic results. In contrast to the monsoon clouds which deliver even and continuous rains, thunderstorm clouds are formed at an altitude of 8-9 kilometres. Thunderstorms of five hours could surpass normal rains recorded during a month, said Shrestha.

Westerly winds formed in the Mediterranean had played a negative role in blocking the spread of monsoon winds towards the farwestern part of the country. But now the westerly wind has shifted northward, clearing the way for the monsoon winds.

A fresh spell of monsoon activity that is ready to start now is likely to travel upto the western region as there is no more obstacle. Let us hope this will terminate the prolonged spell of drought, said Shrestha. "If this latest monsoon gush from the Bay of Bengal fails to make its presence, we may conclude that the monsoon has failed for the western sector," said Shrestha.

Monsoon arrived on July 15 this year. Normally, the rain causing wind retreats by the end of September. July is the month with the highest amount of monsoon rains. The western part of the country received no major rain even in this month.

Throughout the month of July, the areas west of Pokhara received very minimal rains with Dadeldhura getting only 38 per cent of the normal amount. In this month, Dang had the highest precipitation, still a 10 per cent below average. However, the situation improved to some extent in August with Dhangadhi, Surkhet and Jumla receiving more than average precipitation. Monsoon activities in these pockets do not represent the reality of the Far Western districts, where large areas are still dry. In totality, the far-western and mid-western regions received less that 50 per cent normal rain.

In August, Kathmandu received 52 per cent more than normal rainfall. Most of the areas in the eastern part of the country have also experienced above normal precipitation.

Pokhara, Kathmandu, Dhankuta and some other areas of the eastern and central regions received extremely high precipitation in July, breaking their past records, says the weather assessment of the Department of Hydrology and Meteorology. Places that recorded their record-breaking 24-hour rainfall include Kathmandu, Dhankuta, Hetauda and Rajbiraj. Topping this list was Kathmandu, which experienced 177 mm of rain on July 22.

The prolonged spell of drought in the western region led to many places recording the highest ever monthly temperatures.Monsoon activity expected from todayWeather officials predict a new spell of monsoon activity from Wednesday (August 28), breaking the lull seen after the landslide, triggered by heavy rains, that devastated a village in Ramechhap last week.

The relative pause in monsoon activity is attributed to the cyclone that lashed the Arabian Sea, which has now receded. The low pressure, a prerequisite to a cyclone, was responsible for absorbing the moisture that should have delivered rains to Nepal.

Now that the cyclone has subsided, we expect monsoon activity to resume from Wednesday, said a forecaster at the Meteorological Forecasting Division.

He said that the monsoon trough, low-pressure line whose proximity causes rain, is now at the foot of the Himalaya.

PM praises EC's support to Nepal
Deuba, Prodi hold discussions

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KATHMANDU, Aug. 27: Prime Minister Sher Bahadur Deuba had a meeting with president of the European Commission (EC) Romano Prodi in Brussels this morning.

According to the Royal Nepalese Embassy in Brussels, matters relating to Nepal-EC relations and cooperation were discussed during the meeting.

On the occasion Prime Minister Deuba expressed thanks to Mr. Prodi for the EC's continued cooperation in Nepal's development endeavours.

Referring to the establishment of the European Commission's Office in Kathmandu, Prime Minister Deuba expressed hope that the newly established office would contribute to further strengthen political, economic and commercial ties between Nepal and the European Union.

He also thanked the EC for the moral and political support extended to Nepal in her fight against terrorism and for the preservation of constitutional monarchy and Parliamentary democracy in Nepal.
Prime Minister Deuba also reiterated His Majesty's Government's total commitment to democracy, human rights and fundamental freedom, rule of law and good governance.

Stating that the young democracy in Nepal is fighting against terrorism, he called for enhanced level of cooperation from the international community, including the European Union, in combating terrorism and improving the socio-economic condition of the Nepali people.

EC president Prodi expressed support for Nepal's efforts in preserving democracy and human rights, and reiterated EC's continued cooperation for the socio-economic development of Nepal, including support for Nepal's accession to the World Trade Organisation.

Also today, Prime Minister Deuba attended a luncheon hosted in his honour by the vice-president of the European Parliament James Provan in the European Parliament building in Brussels.

During the luncheon, he had an interaction with the prominent members of the European Parliament, including the chairman and vice-chairman of the South Asian Committee.

The discussion with the Parliamentarians focussed on EU-Nepal economic cooperation and the efforts of the government in combating terrorism and protecting the constitutional order in the country.

The parliamentarians expressed the hope that the forthcoming general election will help consolidate democratic process in Nepal and expressed their keen interest in resolving the current problem.
They also expressed their support for ensuring human rights and fundamental freedom within the democratic framework and for the early resolution of the problem of Bhutanese Refugees in Nepal.
Royal Nepali Ambassador to Belgium Narayan Shumshere Thapa, Chief Secretary Keshav Raj Rajbhandari, Foreign Secretary Madhu Raman Acharya and Joint Secretary Gyan Chandra Acharya were present on both the occasions.

Nepal keen to join WTO, affirms Khadka

By A Staff Reporter

KATHMANDU, Aug. 27: The Ministry of Industry, Commerce and Supplies today informed representatives of diplomatic missions in Kathmandu about Nepal's ongoing preparations to join the World Trade Organisation (WTO).

Minister Purna Bahadur Khadka told them about Nepal's present position and preparations being made for the second round of negotiations being held in Geneva on September 9.

According to Ministry sources, Nepal will initiate bilateral talks with the member states of the WTO interested in having trade with Nepal.

While talking with the diplomatic missions, Minister Khadka said that Nepal is fully aware and committed to the WTO provision. However, Nepal must face certain challenges because of its low level of economy and other difficulties. He also urged ambassadors and other foreign representatives to extend their support. He expressed hope that Nepal's development partners would support Nepal as they did during the Brussels and Doha meet.

Secretary Bhanu Prasad Acharya, Joint Secretary Prachanda Man Shrestha and Dr. Poshan Pandey, chief of the WTO National Project, also spoke about various technical aspects of Nepal's preparations.

Ambassadors of Japan, Korea, Israel and Myanmar were present on the occasion. Similarly charge de affairs from the embassies of France, Thailand and Finland were there. Representatives from the embassies of the United States, United Kingdom, China, Egypt, Norway and Pakistan were also present.

Minister Khadka is leading the Nepalese negotiating team.

Secretary Acharya, Joint Secretary and chief of the WTO division at the ministry Shrestha, officials from the Ministry of Agriculture and Ministry of Law as well as representatives of Nepal Rastra Bank will also be participating.

Nepal has already submitted its report and commitment required to join the WTO.

SAARC process on the track: Rahim

By A Staff Reporter

KATHMANDU, Aug. 27: The decisions taken by the 23rd meeting of the SAARC Council of Ministers on poverty alleviation, economic cooperation and suppression of terrorism will have far reaching implications for the SAARC, the SAARC Secretary General said here today.

Talking to the journalists at a Face to Face programme organised by the Reporters Club, Secretary General Q.A.M.A. Rahim said, "The session could take place only after the organisation of the last SAARC Summit, which in itself took place following the lapse of three years. The Summit has revived the SAARC momentum, and the SAARC process is back on track."

In its business like and productive session, the 23rd session of the Council of Ministers, SAARC's main policy making body, took a number of decisions. "Among them, is poverty alleviation, he said.
All other SAARC activities will be expected to contribute to this over arching main goal. "It may be in the social development sector, or in the economic development sector, or in political matters, the aim is one: to contribute to poverty alleviation of this region," Rahim said.

"Since South Asia is home to almost 40 per cent of the world's poor. In terms of absolute poverty, South Asia houses many more poor people than Sub Saharan Africa," said Rahim who joined the SAARC after the 11th Summit in Kathmandu in January this year.

Rahim said that one of the decisions taken by the Summit (in January) was that the SAARC Secretary General would prepare a regional poverty profile. During the 23rd session, the ministers expressed satisfaction at the preparations taken to prepare the profile. "We hope the profile will be ready by year end."

The 11th SAARC Summit had decided to reconstitute the South Asian Independent Poverty Alleviation Commission. The Council of Ministers meeting noted that the commission had already started its works.

The ministers have planned to hold two such meetings in Islamabad and in Dhaka before they submit their reports. So the next Summit will have before it the report of the Independent Poverty Alleviation Commssion and also the regional poverty profile.

The Summit had mandated him to explore the possibility of opening a third window in the South Asian Development Fund, which has about US$ 5 million a year, contributed by the member countries. The Fund already has two windows - the first window is undertaking feasibility studies of regional projects while the second is financing of these regional projects.

The ministers have approved these projects on poverty alleviation, which have now been placed before
the governing board of the South Asian Economic Fund. The meeting of the governing board will take place in Kathmandu from September 10 next month.

The second most important decision taken by the 23rd ministerial level meeting is the fulfilment of the goal of economic cooperation. SAPTA is the most important activity that has come under economic cooperation.

Under SAPTA, tariffs on 5,000 items have been cut by ten to hundred per cent and concessional facilities have been given to member countries. "At the moment we are involved in the fourth round of negotiations which is expected to enlarge the list of tradable items that will enjoy concessions and deeper tariff cuts."

The 11th Summit had committed all the leaders to the eventual establishment of a South Asian Economic Union in a phased manner. SAPTA is the first phase; SAFTA will be the second; custom unions will be the third phase, while the final phase will be the South Asian Economic Union.
"The ministers have given us the mandate that the next meeting of the committee of experts to finalise the text of the trade treaty for the SAFTA agreement will be held on 31st December 2002.

Other decisions have also been taken to take the SAARC Process forward. But noted Rahim: "Only papers are not enough, certain actions and decisions also should take place for the effective implementation of the SAFTA agreement."

The other important decision is on the problem of terrorism. The Convention on Suppression of Terrorism became operational way back in 1987. Following some recent events, including what is now known as 9/11, UN Security Council Resolution 1373 and the adoption of the International Convention on the Suppression of Financing of Terrorism, there was a need to upgrade the SAARC convention. "The ministers decided that a meeting of senior officials assisted by legal experts will take place in Sri Lanka to draft an additional protocol to be added in that convention.

"A meeting of police heads of SAARC member countries that begins tomorrow in Kathmandu will further strengthen cooperation.

"There will also be a meeting of Interior Ministers of SAARC countries in Dhaka where we hope crime prevention, terrorism suppression and trafficking of women and children for prostitution will receive special attention," he said.

In the social area, health will get special care, and ministers of Health will gather in New Delhi to chalk out an effective policy. The menace of HIV/AIDS and arsenic contamination of water in the region will get special emphasis, said Rahim.

President of the Reporters' Club Rishi Dhamala presided over the programme.

Belgium Minister meets Deuba

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KATHMANDU, Aug. 27: Deputy Prime Minister and Minister For Foreign Affairs of Belgium Mr. Louis Michel met Prime Minister Sher Bahadur Deuba in Brussels last evening.

During the meeting, matters relating to bilateral relations and economic and financial co-operation were discussed.

The Prime Minister expressed his thanks for the government and people of Belgium for their continued cooperation in Nepal's development efforts.

The Prime Minister said democracy is fighting against terrorism in Nepal and emphasised that HMG would make every effort to ensure human rights and fundamental freedoms to all within the constitutional framework.

He also spoke on the forthcoming general election and reiterated HMG's commitment to ensure free and fair elections scheduled for November 13 this year.

Belgian Deputy Prime Minister Michel assured Mr Deuba of Begium's support for HMG's efforts in fighting terrorism and preserving constitutional monarchy and multiparty democracy.

The Deputy Prime Minister also expressed Belgium's continued support for the socio-economic development of Nepal, according to the Royal Nepalese Embassy in Brussels.