Nepal, India ready to amend trade treaty

A two-day secretarial level meeting between Nepal and India ended Monday with both countries agreeing to amend the bilateral trade treaty within three months.

Talking to media after the meeting, Nepal"s commerce secretary Purushottam Ojha said the parties had also agreed on the clauses to be amended in the existing bilateral trade treaty. "We will finalize the amendment within three months," he said.

He further said the amendment meeting would be held in Kathmandu. The treaty has been renewed twice since it was signed in 1996. The two nations have been discussing the amendments for the last two years.

"We have almost finalised the amendments," an official present at meeting told the Post. "The Indian side has informed us they will decide on some of the agendas in a few days," he added.

During Prime Minister Puspa Kamal Dahal"s India visit last month, Indian businessmen had asked him to create a favourable environment for their investment in Nepal. The two nations had then theoretically agreed to ease and develop bilateral trade.

Ojha claimed that the proposed amendments would improve Nepal"s trade with India by ending the hassles Nepali entrepreneurs have been facing. India will also help Nepal increase connectivity.

"We have concluded an important meeting and need to make practical changes to the agreements in the amendment draft," he said.

During the meeting, India agreed to help Nepal test the quality of food products exported to India and also improve the infrastructure of laboratories in Nepal.

Similarly, India also agreed to allow Nepal to use its railway. Nepal will now be able to use the Jogbani-Sinhabad track that enters Bangladesh at Rohanpur for tri-lateral trade with Bangladesh. Also, both nations agreed to open their airways for trade, an official said. India also agreed to scrap the quota system on import of vegetable ghee, copper products and zinc oxide.

The meeting agreed to increase the capacity of the dry port in Birgunj. "This will increase traffic in Birgunj," Ojha said, adding that India had also agreed to open its liquid cargo track for Nepal.

A joint team will also visit the Banglabandh-Fulbari road to remove problems that have been creating hassles for Nepali traders. "We agreed to visit the road to resolve any problem," Ojha said.

Similarly, India has also agreed to provide equal treatment to transactions made either in US dollars or Indian currency, a move that is expected to boost the competitiveness of Nepal products in the Indian market. India has also assured it will sort out obstacles in the export of readymade garments to India.

During bilateral talks, the Indian side raised concern over labour problems and various complications in the operation of Manipal Collage that was established with joint Indian investments. Ojha, in turn assured Nepal"s commitment to resolve the problem as soon as possible.
Source: Ekantipur