Nepali and Indian Commerce Ministry officials are scheduled to meet next week in New Delhi to discuss issues related to trade and commerce. The meeting on Thursday will also review the Nepal-India bilateral trade treaty, according to the Ministry of Industry, Commerce and Supplies.
Though the meeting will not be decisive on reviewing the trade treaty, the two-day meeting will focus on simplifying the existing barriers to bilateral trade. The two-day meeting will dwell on ways to address Nepal’s ballooning trade deficit with India and introduce and amend provisions in the trade treaty to ease bilateral trade, the ministry claimed, adding that adding that Nepal’s priority will be to simplify country’s trade with India by addressing tariff and non-tariff barriers. “The meeting will also finalise agendas for reviewing trade treaty, which were discussed during previous two meetings.”
This is the third time that the two countries are sitting together to discuss the review of the trade treaty. “Nepal has also urged Indian authorities to allow shipment of bulk cargo from additional entry points,” joint secretary at the ministry Navaraj Dhakal said, adding that imported bulk cargo from third countries currently can be transported only via Brigunj. “Currently, bulk cargo imported from third countries through Kolkata, Haldiya or Visakhapatnam ports can be transported only to the Birgunj border point in Nepal.”
Bulk cargo includes fertilizer, sugar, soybean, salt, oil cake and raw plastic materials. “Nepal has also urged Indian authorities to lift quantitative import restrictions on different products, including vegetable ghee and yarn,” he added.
Nepal has also been asking India to allow the use of additional sea ports. India has agreed to allow Nepal to use two other sea ports at Dhamra in Orissa and Mundra in Gujarat. Nepal seeks to use these ports as alternatives to Kolkata and Visakhapatnam.
Likewise, India has been asking Nepal to lift the 5 per cent agriculture service fee charged on imported Indian farm items but Nepal has been refusing to cancel the fee stating that it would affect the competitiveness of Nepali agricultural products.
Nepal and India are also looking forward to using inland waterways to transport cargo from Indian ports to the Nepali border. According to the ministry, India has started inland waterways from Kolkata to Varanasi along the Ganga River. India has expressed readiness to extend the routes up to the Nepal border along the Narayani River once the infrastructure is built in Uttar Pradesh and Bihar states.
The meeting will likely finalise the amendments planned to be made to the Treaty of Transit to streamline trade, which will be approved by the Nepal-India Intergovernmental Committee – a mechanism to solve trade-related issues between the two countries – soon.
Earlier, Commerce Ministry officials of both the countries had held review meeting on the bilateral trade treaty in New Delhi on August 9 and in Pokhara on February 7 and 8.
“The joint secretary-level meet will discuss finalising the agenda, which was sent to the second round of meetings held last March,” according to Dhakal.
Developing infrastructure at the customs points on the border between the two countries was also discussed at the last trade talks, he said, adding that India has provided 22 designated routes for bilateral trade. “India has upgraded the Birgunj-Raxaul customs checkpoint while work at the Biratnagar-Jogbani point is nearing completion, but little progress is being made in the construction of infrastructure at the Bhairahawa-Sunauli and Nepalgunj-Rupaidiha points.”
A cabinet meeting last Tuesday formed a nine-member Nepali team led by Dhakal to participate in the talks. The committee-led by joint secretary at the Ministry of Industry, Commerce and Supplies Nabaraj Dhakal comprises representatives from the Ministry of Foreign Affairs, Department of Customs and Ministry of Agriculture and Livestock Development.
The last time the treaty was revised was in 2009.
Though the meeting will not be decisive on reviewing the trade treaty, the two-day meeting will focus on simplifying the existing barriers to bilateral trade. The two-day meeting will dwell on ways to address Nepal’s ballooning trade deficit with India and introduce and amend provisions in the trade treaty to ease bilateral trade, the ministry claimed, adding that adding that Nepal’s priority will be to simplify country’s trade with India by addressing tariff and non-tariff barriers. “The meeting will also finalise agendas for reviewing trade treaty, which were discussed during previous two meetings.”
This is the third time that the two countries are sitting together to discuss the review of the trade treaty. “Nepal has also urged Indian authorities to allow shipment of bulk cargo from additional entry points,” joint secretary at the ministry Navaraj Dhakal said, adding that imported bulk cargo from third countries currently can be transported only via Brigunj. “Currently, bulk cargo imported from third countries through Kolkata, Haldiya or Visakhapatnam ports can be transported only to the Birgunj border point in Nepal.”
Bulk cargo includes fertilizer, sugar, soybean, salt, oil cake and raw plastic materials. “Nepal has also urged Indian authorities to lift quantitative import restrictions on different products, including vegetable ghee and yarn,” he added.
Nepal has also been asking India to allow the use of additional sea ports. India has agreed to allow Nepal to use two other sea ports at Dhamra in Orissa and Mundra in Gujarat. Nepal seeks to use these ports as alternatives to Kolkata and Visakhapatnam.
Likewise, India has been asking Nepal to lift the 5 per cent agriculture service fee charged on imported Indian farm items but Nepal has been refusing to cancel the fee stating that it would affect the competitiveness of Nepali agricultural products.
Nepal and India are also looking forward to using inland waterways to transport cargo from Indian ports to the Nepali border. According to the ministry, India has started inland waterways from Kolkata to Varanasi along the Ganga River. India has expressed readiness to extend the routes up to the Nepal border along the Narayani River once the infrastructure is built in Uttar Pradesh and Bihar states.
The meeting will likely finalise the amendments planned to be made to the Treaty of Transit to streamline trade, which will be approved by the Nepal-India Intergovernmental Committee – a mechanism to solve trade-related issues between the two countries – soon.
Earlier, Commerce Ministry officials of both the countries had held review meeting on the bilateral trade treaty in New Delhi on August 9 and in Pokhara on February 7 and 8.
“The joint secretary-level meet will discuss finalising the agenda, which was sent to the second round of meetings held last March,” according to Dhakal.
Developing infrastructure at the customs points on the border between the two countries was also discussed at the last trade talks, he said, adding that India has provided 22 designated routes for bilateral trade. “India has upgraded the Birgunj-Raxaul customs checkpoint while work at the Biratnagar-Jogbani point is nearing completion, but little progress is being made in the construction of infrastructure at the Bhairahawa-Sunauli and Nepalgunj-Rupaidiha points.”
A cabinet meeting last Tuesday formed a nine-member Nepali team led by Dhakal to participate in the talks. The committee-led by joint secretary at the Ministry of Industry, Commerce and Supplies Nabaraj Dhakal comprises representatives from the Ministry of Foreign Affairs, Department of Customs and Ministry of Agriculture and Livestock Development.
The last time the treaty was revised was in 2009.
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