Inner-View (Business Age)

Inner-View

New Trade Treaty will give immediate impetus to Nepalese Industries: Ambassador IP Singh

BA: Nepal-India treaty talks have now been concluded. Do you think the new treaty will further boost bilateral trade relations in the days to come?

Singh: The new Trade Treaty continues to provide duty-free access into the Indian market for Nepalese-manufactured goods on a non-reciprocal basis.

The new Trade Treaty with its value addition requirements for Nepalese exports to India will give an immediate impetus to expanding the industrial base as industrial manufacture in Nepal will have to go in for further backward and forward integration in order to meet the value addition requirements of 30% applicable one year from now. Other provisions in the new Trade Treaty will make for greater transparency and mutual trust. Minor irritants in the relationship have also been removed in the new Trade Treaty. Thus, the new Treaty should succeed in expanding and diversifying Nepal’s industrial base and in boosting our bilateral trade.

BA: How do you view the recent visit of Nepalese Prime Minister Sher Bahadur Deuba to India?

Singh: The visit of Right Hon’ble Prime Minister of Nepal, Mr. Sher Bahadur Deuba has been a successful goodwill visit. Such high-level visits between any two countries, particularly between neighboring countries, strengthen bilateral relationships and mutual understanding. Moreover, relationship between Nepal and India is multi-dimensional. This has been further strengthened by the recently concluded visit of Prime Minister Deuba.

BA: Following the recent exchange of visits of high profile dignitaries between India and China, do you see a meaningful rapprochement between the two countries? If yes, could you elaborate on it and its possible impact on Nepal’s foreign, economic and political spheres including South Asia?

Singh: India and China are close friends and our friendship has been strengthened by the recent exchange of high level visits. Both are committed to faster economic development and prosperity for its people. As for Nepal, it is at an advantageous position to take benefit from the developments of both India and China. I wish Nepal well in this regard and hope that economic development takes place at a faster pace.

BA: Will Nepal’s accession to WTO affect Nepal-India Trade Treaty?

Singh: I do not think so. The India-Nepal bilateral economic relationship and the concessions extended by India to Nepal date from the 1950s. This special relationship would need to be protected at the time of Nepal’s accession to WTO, after which the bilateral trade relationship will continue within the overall context of WTO.

BA: In a press conference, you had mentioned that Indian Defence Minister George Fernandes will visit Nepal shortly. What is the progress in this regard? What would be the likely agenda of his visit?

Singh: I think there was a misunderstanding. I had said that the Home Minister of India will visit Nepal shortly. As of now, the Defence Minister has no plans to visit Nepal in the near future. However, our Chief of Army Staff (COAS), General S Padmanabhan is scheduled to visit Nepal in second week of May. Apart from being conferred the rank of Honorary General in the RNA by His Majesty King Gyanendra, he will also meet the Prime Minister of Nepal (who is also Defence Minister) and hold discussions with top Royal Nepalese Army officers. As you are aware, there are very strong ties between the Indian Army and the Royal Nepalese Army (RNA) as also a vibrant Defence Cooperation Programme. Our COAS will discuss details of military assistance required by the RNA in terms of supply of arms and equipment, logistics support and provision of training facilities. He will also meet our Indian Army ex-servicemen of whom there are approximately one lakh in Nepal.

BA: As an important donor for Nepal, how do you evaluate the recently concluded meeting of the Nepal Development Forum (NDF) in Nepal?

Singh: For the last fifty years, India has been assisting Nepal substantively, in various areas of socio-economic development including construction of critical infrastructure. India-Nepal economic cooperation is bilateral, and India is not a member of the Nepal Development Forum. However, in the recently held meeting of the Forum, both India and China were invited by HMGN to be present as special invitees.

We closely observed the deliberations of the NDF meeting and took note of the concerns expressed by HMGN as well as by the representatives of the member-countries of the NDF. We believe that the NDF meeting was a success and achieved its objectives. It involved a free and frank discussion on issues brought forward by both sides. This would, in all probability, lead to desired action not only in terms of higher levels of development assistance but also result in sincere efforts towards good governance, efficient utilization of development funds and effective action against corruption.

BA: Both Nepal and India are facing Maoist violences. Do you see any link in their activities? Do you think that such activities can be crushed by armed forces only? What further course needs to be taken by our respective governments?

Singh: Both Nepal and India are facing Maoist violence. As you are aware, due to the open border the possibility of linkages between such groups both in India and Nepal do exist. Thus, this issue has to be simultaneously tackled by security forces on both sides of the border in a coordinated manner. I am happy to say that this is being done and a fair measure of success has been achieved by both countries. I would not like to dwell further on this issue for obvious reasons.

Regarding further course to be taken, I would advocate a three pronged approach of tackling the political, developmental and security aspects of the problem in a coordinated manner. To this end, the Integrated Security and Development Programme of His Majesty’s Government of Nepal is an excellent and workable concept. No problem of such nature (and we have numerous such problems in India) can be solved by the security forces alone.

BA: Nepali Maoist leadership have time and again been declaring that they can fight with India including the USA. What do you have to say to such threats?

Singh: I would not like to respond to such declarations. Suffice it to say that I am confident that the present problem can be tackled by His Majesty’s Government of Nepal and the security forces of Nepal. I see no role for any foreign army in solving this problem.

BA: Keeping the current situation in mind, do you see any danger for Indian nationals in Nepal?

Singh: When there is a security problem of this nature, a level of threat exists for all people living in this country. I am sure the best way to minimize the threat is to take the basic normal precautions and follow the advice given by both the civil administration and security forces. I do not discern any specific threat directed at any community in particular.

BA: At a time when there is a global alliance against terrorism, how can Nepal and India cooperate in matters related to cross border terrorism? Are you satisfied with the current level of alertness along the border?

Singh: Nepal has security concerns with respect to linkages between Maoist groups on both sides of the border. Similarly, we have security concerns concerning use of Nepalese territory by agencies hostile to India. Incidents such as the hijacking of IC-814 and smuggling of explosives and fake Indian Currency have occurred and cannot just be wished away. However, I am confident that given the close relations between our two countries and ongoing efforts by security forces of both countries, these problems will be resolved. As far as level of alertness along the border is concerned, you are aware that India has deployed security forces along the Indo-Nepal border with the specific aim of controlling activities inimical to Nepal. Nepal has also deployed forces on this side of the border. As I have said earlier, coordinated operations are being conducted on both sides which are achieving tangible results.

BA: Recently, a Pakistan Embassy staff was found involved in fake INR and USD currencies dealing in Kathmandu. Again, a huge amount of US Dollars were seized from a terrorist outfit in Kashmir allegedly coming from Nepal. Such incidents are not the first of its kind. How does India evaluate such events?

Singh: As I have said earlier, these are facts, which cannot be just wished away. His Majesty’s Government of Nepal is aware of our concerns and both countries are working closely together to ensure that hostile agencies do not spoil our friendly relations.