Nepal resumes exports through Rasuwagadhi border after 3 years

The northern border that has remained almost closed after 2015, has opened from today as Nepal exported some eight containers of goods to China through the Rasuwagadhi border customs.

Export from Nepal has been completely stalled for about 36 months citing the Covid-19 pandemic, whereas trade has been irregular though Tatopani customs since 2015 devastating earthquake. 

Chief Customs Officer at Rasuwa Customs Office Narayan Prasad Bhandari confirmed the export of goods worth around Rs 5.07 million today through the Rasuwagadhi customs today. 

“Exports that had stalled due to the Covid pandemic have started from today,” he said, adding that bamboo stools, handicrafts and copper ornamental items were exported to China today. "The export of goods and the movement of people through Rasuwagadhi customs was closed from January 29, 2020."

According to the customs report, goods worth Rs 763 million were exported to China in the fiscal year 2019-20. However, a limited import was allowed and about 14 Chinese containers were imported from the border daily, though irregularly. 

Nepali traders have been blaming China for imposing an 'undeclared blockade' on Nepal by halting the free movement of goods to and from the landlocked country via both Tatopani-Khasa and Rasuwagadhi-Kerung customs points. Nepali traders have been voicing their concerns time and again but the apathy from the Chinese side pushed them into huge losses. 

Ready-made clothes, apples, shoes, bags, motor batteries, plastic goods are imported from China through the border, whereas pashmina, carpets, bamboo stools, broom grass, refined flour, vegetable ghee, noodles, pasta, biscuits, juice, jam, beaten rice, lapsi candy, chocolate, sugar and chewing gum are exported to China.

According to a press note issued by the Chinese Embassy in Kathmandu, “The opening of two-way trade of Kerung port will promote Nepal’s exports to China, reduce the trade deficit in Nepal, solve the trade imbalance, and further improve the connectivity between China and Nepal.”

Nepal and China trade through Tatopani and Rasuwagadhi border points. But the Tatopani border point is still closed for two-way trade. 

The resumption of bilateral trade could be a coincidence with the formation of a new government, that is said to be orchestrated by the northern neighbour, a day ago in Nepal.

There will be an official ceremony to celebrate the resumption of two-way trade tomorrow. The ceremony will be attended by delegates of the Department of Commerce of Xizang Autonomous Region, the Lhasa Customs, the General Station of Immigration Inspection of Xizang Autonomous Region, the Health Commission of Xizang Autonomous Region, and other relevant departments.

The Chinese Embassy in Kathmandu has released pictures of export from Nepal.

Nepal proposes opening of 13 border points with China

To balance the South-tilted trade relations, Nepal has proposed China for opening nine more border points, beyond the four that they have agreed upon, making it to 13 border points with China.
During the meeting in Kathmandu today, Nepal pushed for opening of more border points, but the meeting ended inconclusively. The delegations from Nepal and China today discussed a proposal to open up 13 border points to ease the connectivity between the two countries, according to a senior Nepali official, who took part in the meeting. "The Nepali side proposed opening up nine more border points with China, beyond the four points the two sides have already inked an agreement for," he said, adding that the meeting could, however, not reach any agreement today.
The Chinese side said that it will make on-site visits to five new proposed bordering points, out of 13 proposed, though they did not mention the names of the proposed 5 bordering points, said joint-secretary at the Ministry of Physical Infrastructure and Transportation, Saroj Pradhan, who led the Nepali team in the meeting.
Though the Chinese side had been positive on opening three border points in east Nepal, they have 'backtracked on it during the meeting, making it impossible to reach any agreement', according to the official.
Earlier, Nepal and China had agreed to open border points at Yari, Kerung, Olangchungola and Tatopani, the border that has been closed since the devastating earthquakes in 2015. . Nepal has also tabled a proposal on opening the border at nine more points, including Hilsa, Korola, Dolpa, Darchula, Taklakot, Olangchungola and Kimathanka.
The Road and Transportation Agreement reached between the two countries in 1994 allows the two neighbours to reach an understanding. The agreement facilitates opening up border points, movement of people and in some special cases, Nepal can use the Chinese highways for trade in certain parts that are not linked with road connectivity from the Nepali side.
Last month, China agreed to recognise the newly opened border trading route of Rasuwagadi-Kerung as an international checkpoint between Nepal and China. The Rasuwagadi-Kerung border crossing, which connects Nepal to China's autonomous region of Tibet, had begun operations in December 2014. It is the second largest border point for trade after Tatopani, and is recently declared international customs point between the two countries.
Earlier, Nepal had appealed China for immediate resumption of the Araniko Highway – the main trading point with China – during the visit of Chinese vice premier Wang Yang. He had agreed in principle to upgrade the trade highway. Beijing has, however, backtracked from the decision to open the key trade route that has been closed after the devastating earthquake of 2015. The Araniko Highway – leading to the Tatopani Border point – was hit badly in the devastating earthquake and subsequent landslides.
This March, China had handed over the Araniko Highway – that is of crucial importance to Nepal as it carries a large amount of goods from China – to Nepal after completing
repairs. The 114-km highway was repaired with Chinese grant assistance of Rs 760 million.
Earlier on Monday – during a meeting with China's ambassador to Nepal Yu Hong – minister for Physical Infrastructure and Transport Bir Bahadur Balayar had also proposed opening new 13 transit points along the border between Nepal and China as a part of Nepal's preparation to open additional transit points.
Kathmandu and Beijing have been stepping up efforts lately to improve road connectivity while speeding up plans to build a railway line connecting to Nepal's border. The then prime minister K P Sharma Oli had signed a Transit Trade Treaty with Beijing last year.

Arniko highway reopens after over three-month

The Araniko Highway – that links Nepal with northern neighbour – reopened today after being blocked for more than 100 days.
The 114-km highway – which suffered severe damage due to the landslides triggered by the torrential rainfall after the devastating earthquakes on April 25 – reopened after five-day joint operation of Chinese armed police officers and the Nepali Army, police and Armed Police Force.
Addressing a reopening ceremony here in Kathmandu foreign minister Mahendra Bahadur Pandey said that the reopening of the highway has provided a deep sense of relief as it will facilitate smooth movement of vehicles that will help revive trade and tourism between the two countries.
"The highway connects the two countries," he said, adding that the government highly appreciates the dedication and hard work of the armed police officers in making this operation successful in a very short period of time.
The Chinese team came to Nepal on August 1 to clear the 37-km Tatopani-Khadichaur stretch of the highway. China had dispatched 100 armed police officers, after Nepal requested China for help. Earlier, it was estimated to take around 20 days, but the joint team cleared 41 spot of blockades within five days.
Chinese ambassador to Nepal Wu Chuntai, on the occasion, said that China is willing to go all out to help Nepal in its reconstruction efforts. "Natural disasters like earthquakes and landslides go beyond the border," he said, adding that the Chinese people sympathise with Nepal's sufferings in the earthquakes and their aftermath.
Since last over 100 days, the imports from China could not reach Kathmandu directly through Arniko Highway due to clockades. The blockades on the section of Nepal-China inland route has forced traders to import the goods through Kolkata port – paying higher transportation costs – via India. The higher transportation cost has pushed the prices of the goods up. The traders said that the current situation, if continues, the prices are bound to rise this festive season. Nepal imports different goods including readymade garment, footwears, cosmetics, machinery parts and hardware products, fruits and electronics, from China.
The prices of Chinese goods will go up also as another trade route – Rasuwagadhi – between the two countries – that was formally opened on December 2, 2014 – has been closed lately. 
According to Nepal Trans-Himalayan Border Commerce Association, there were some 400 to 500 containers laden with goods along Nepal-China border.