NEW DELHI, Aug 22: Nepal and India reached a new trade treaty and an agreement to control unauthorized trade, particularly from a third country here on Saturday.
The trade treaty, which has been negotiated for the last two years, aims at enlarging the scope of the existing institutional framework, under which India gives duty-free access to its market to goods manufactured in Nepal. [break]
However, the trade treaty and the agreement to control unauthorized trade would be formally signed later, an official said.
The agreement was signed by commerce secretaries of the two countries -- Nepal´s Purushottam Ojha and his Indian counterpart, Rahul Khullar.
Nepal´s Minister of Commerce and Supplies Rajendra Mahto and India´s External Affairs Minister S M Krishna were also present on the occasion.
A joint communique signed by the two sides said that both the countries agreed that an Inter Governmental Committee (IGC) at the level of commerce secretaries should look into the relevant issues with a view to promoting trade, investments and industrialization in Nepal, expanding complementarities of bilateral trade on a sustainable basis and further removing barriers to trade and investment. The two prime ministers directed that the IGC should meet within the next two months.
The new pacts will replace the existing arrangements since 1991, extended from time to time.
According to the communique, India agreed to the utilization of its port at Vishakhapatnam for movement of transit traffic to and from Nepal.
The two sides discussed security concerns relating to the open border between the two countries. Nepal assured India that it would not allow its territory to be used for any activity against India and the Indian side also gave the same assurance to the Nepali. Recently, Republica unearthed a meeting between Indian intelligence officials and some armed outfits operating in Nepal´s Tarai in Patna.
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