Mumbai: The governments of India and Nepal have
renewed their crucial bilateral treaty for another five
years without a review.
"The Indo-Nepal Trade Treaty, which was to expire
yesterday, has been renewed as it is," said Nepal''s
commerce secretary Bharat Bahadur Thapa.
The decision to extend the pact was taken at a high-level
meeting of the commerce ministry officials of the two
countries on February 23.
All concerned bodies have been issued with the renewal
notification, Thapa said.
Nepal''s manufactured goods, barring three items in the
negative list and five items with quantitative restrictions,
would continue to enjoy unlimited duty-free market access
in India without Nepal requiring to reciprocate with
the facility, he said.
Under the treaty, the agricultural exports would also
enjoy duty-free market access in India, but with a provision
of reciprocity, which means Indian farm products would
also continue to enjoy duty free market access in Nepal.
While both Nepal and India are members of the WTO and
SAARC, Nepal is seeking more bilateral concessions,
especially on non-tariff barriers.
has revoked additional customs duty on 111 items of
export from Nepal, the country wants more items to be
given the waiver and increased quotas for select export
items, like vegetable ghee. It is also urging India
to ease the red tape at the quarantine check posts for
Nepali agricultural goods.
Nepal''s largest trading partner, accounting for nearly
70 per cent of Nepal''s foreign trade, wants to ink a
comprehensive economic partnership pact that will go
beyond goods and services.
dramatic political changes taking place in Nepal since
last year, there wasn''t much time for the two sides
to thrash out a new framework.
immediate changes in the treaty are also likely to be
the Maoists, who have signed a pact with the Nepal government
saying they should be consulted on issues of national