National 3 (Spotlight Weekly)

Hurdles Ahead

The government seeks to amend the existing act to ratify WTO membership; but real challenge lies in benefiting from the free trade

By A CORRESPONDENT

Ending the uncertainties over how the government would ratify the membership of World Trade Organization (WTO), the authorities have moved to amend the existing act to pave the way.

The government is preparing to amend Nepal Treaty Act to get the formal membership of the World Trade Organization (WTO). The government has already submitted a proposal in that effect to the royal palace for final declaration of the amendment.

According to the Nepal Treaty Act only the parliament can ratify treaties. But since the time to ratify the WTO membership, which Nepal was awarded six months ago, is running out and there is no parliament in place, the government decided to amend the act.

The amendment includes an additional article in the original treaty act, which allows government to decide for ratification of treaty in absence of parliament. Once the act is amended, the government will communicate the ratification of WTO membership to the WTO Secretariat paving the way for its full-fledged membership.

Carpets : Tough competition in the offing

At a program held last week by the South Asia Watch on Trade, Environment and Economics (SAWTEE), officials said that it is only a matter of ‘correspondence’ and that Nepal will become full member of the World Trade Organization (WTO) within the stipulated time of March end this year.

According to Prachanda Man Shrestha, joint secretary at the Ministry of Industry, Commerce and Supplies and chief of WTO Cell, dismissed concerns that Nepal might not become WTO member as it had no elected parliament to ratify the membership granted by the WTO six months back. As per the WTO rules, its membership needs to be ratified by the country within six months to be awarded full membership.

Meanwhile, experts have said that the main challenges still remain before the country. “Getting membership is an easier part. What is more difficult is how to extract maximum benefits from it,” said an economist.

Two Least Developed Countries (LDCs) – Nepal and Cambodia – were awarded the WTO membership in October last year. “Being a LDC and a land-locked country suffering from insurgency, the challenges for Nepal is magnified by many fold,” said the economist.

MAHALISAGAR RESPONSE

Indian Embassy has refuted media reports coming in Nepalese newspapers about the controversy surrounding the Mahali Sagar.

In an elaborate press statement, the Embassy has stated that, “The Mahali Sagar is a reservoir partly in India and partly in Nepal containing water of the Masai Nala. The parameters of the Sagar were mutually agreed upon in 1876 between the then Governments of India and Nepal. The reservoir has two escapes in Indian territory which allow the water to flow out – one gated and one ungated escape. The gated escape was damaged some years ago and a new gated escape was sought to be built. The design for the new escape was sent to the competent Nepalese authority for approval and it was so approved in December 2002. Shortly thereafter, the construction of the new gated escape was begun on the Indian side on the basis of agreed parameters.”

“As the Nepalese side had desired that more water i.e., 102 cumecs of water, should be discharged through the escape, the new escape was designed to contain 15 bays with the following agreed overall parameters - full reservoir level of 92.76 meters above mean sea level; and crest level or level of the bottom of the regulator 91.60 meter above mean sea level.”

The Embassy further states, “Thus all the construction is being carried out on the Indian side in full view of the Nepalese side and with the approval of and under information to the competent Nepalese Government authority. At present, there are puddles of stagnant water on the Nepalese side in about 28 hectares of land of about 20 cms depth and in about 10 hectares of land in Indian territory.”