Friday, September 27, 2019

Nepal, India agree to review trade treaty

Nepal and India today agreed to review the bilateral trade treaty.
During the two-day commerce joint secretary level-talks that ended today, both sides agreed to review issues related to bilateral trade and commerce.
According to minister for Industry, Commerce and Supplies Matrika Yadav, both the nations have agreed to take steps like comprehensive review of the existing bilateral trade treaty, to further boost two-way commerce. “The bilateral talks focused on enhanced cooperation to stop unauthorised trade in both nations,” he said, adding that officials of the two countries sat down for the third round of talks to review the bilateral treaty of trade in New Delhi on Thursday and Friday. “The talk is expected to prepare groundwork and other provisions to review the trade treaty.”
The nine-member committee – led by joint secretary at the Ministry of Industry, Commerce and Supplies Nabaraj Dhakal – comprised of representatives from the Ministry of Foreign Affairs, Department of Customs and Ministry of Agriculture and Livestock Development had left for New Delhi on Thursday to hold talks with joint secretary of the Department of Commerce under Ministry of Commerce and Industry of the Government of India Bhupinder Singh Bhalla led Indian delegation at the joint secretary-level meeting. “Nepal and India also finalised the draft of a mutual recognition agreement in the trade of agricultural goods,” he said, adding that after the agreement goes into effect, the two countries will recognise the quality certificates issued by each other.
The ministry has informed that officials also discussed on possible ways to address Nepal’s ballooning trade deficit with India and introduce and amend provisions in the trade treaty to ease bilateral trade.  Meanwhile, it has been agreed upon to include possible concerns raised by both Nepal and India in the revised treaty.
“India has agreed to address Nepal’s concerns related to simplifying trade with the southern neighbour by addressing both tariff and non-tariff barriers,” Yadav said, adding that he would, however, disclose the details of the agreement after the negotiating team submits its report to him. “The meeting also was positive on addressing Nepal’s agenda to drop the zero-tariff facility on Indian agricultural goods and some other primary products.”
Earlier, officials from both the nations had held two meetings on reviewing the bilateral trade treaty in New Delhi on August 9 last year and in Pokhara on February 7 and 8.
Likewise, the February 8 meeting in Pokhara had agreed to declare inland waterways as ‘trade route’ in Nepal-India Trade Treaty. India has principally agreed to allow landlocked Nepal to use three inland waterways, which will help expand Nepal’s transit options to the sea. “Nepal can even operate its own vessels on the Ganges River that runs parallel to the southern border.”
A draft of the letter of exchange on the inland waterways was finalised during the bilateral trade talks,” Dhakal informed.
Nepal and India had issued a joint statement on establishing new connectivity through inland waterways during Prime Minister KP Sharma Oli’s visit to New Delhi in April 2018. Earlier, India has also consented to grant access to the Kolkata-Kalughat, Raxaul; Kolkata-Sahebgunj, Biratnagar and Kolkata-Varanasi-Raxaul routes during the trade talks.
Last March, the two countries formed a joint technical team to study the possibility of operating waterway transportation over various routes. The technical team identified the three routes via Haldia port as the most viable routes for inland waterway transportation between the two countries.
India has developed a waterway on the Ganges River connecting Varanasi and the seaport of Haldia, Kolkata. Access to the Indian waterways will facilitate efficient movement of cargo imported from third countries to Nepal, though the idea seems too far fetched despite Prime Minister KP Sharma Oli’s dream of ferrying ship in Nepal.
The provision could get legitimacy, after it is signed at the next Inter-Governmental Committee meeting.
India currently grants duty-free access to Nepali products with at least 30 per cent value addition. “India has agreed in principle to implement policy considering Nepali products from the customs tariff headings to the customs tariff subheadings, ensuring flexibility in the goods imported from Nepal,” the ministry informed. “Revising duty-free access for agricultural goods, revising the agriculture reform fee imposed by Nepal on Indian farm products, and removing Indian quotas on four Nepali products were among the major items on the agenda.”
Nepal has been asking India to lift the quantitative restriction on the import of acrylic yarn, copper utensils, vegetable ghee and zinc oxide, which has been in place since 2002.

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