Bilateral trade treaty review meet aims to regain lost glory

Nepal and India today tried to iron out differences over ways to help Kathmandu to regain its lost glory in the growing Indian market.
The matter came to the fore during the first day of the two-day bilateral trade treaty review meeting.
The visiting Indian team agreed to provide technical aid to Nepal for upgrading food laboratories. The expertise will help harmonise the standards and accreditation system. The technical know-how will boost Nepal’s export to India.
“But, the process will take time,” said an official of Ministry of Commerce and Supplies.
The meeting agreed upon adopting various mechanisms to control the unauthorised trade — a long-standing issue between the south Asian neighbours — via the porous Nepal-India border.
Similarly, New Delhi disagreed on Kathmandu’s entreaty to put an end on the imposition of varied state taxes on export items.
State taxes have hit Nepali exports hard in recent times. Incidentally, the Trade Treaty gives special preferences to Nepali goods in the Indian market.
Nepal is keen to avail of the facilities of the port in Mumbai to facilitate third country trade. Also, relaxation has been sought for engaging in commerce with Bangladesh via India.
New Delhi, in principle, has agreed to incorporate a provision on exemption in excise, relief in additional customs and other duties.
“The visitors have given their assent to review the Treaty in view of the changed context,” said Surya Silwal, joint secretary, Ministry of Commerce and Supplies.
Demands have also been raised to eliminate all non-tariff barriers and make efforts to attract more investments.
“India has reciprocated positively. However, a final decision will be taken in tomorrow’s meeting,” added Silwal.