During the talks to be held at the commerce secretary level, Nepal would also seek swift action by India for full operationalization of the bilateral trade treaty, so that Nepal could give new impetus to its slackened exports.[break]
In the new treaty signed in 2009, the two sides agreed on opening trade via air, a pledge of support for laboratory upgrade and recognition of standard certification, operation of Vishakhapatnam as a new transit port for Nepal and opening of the Rohanpur-Singhabad rail route for Nepal-Bangladesh trade, among other things.
“A great majority of the new agreements still remain unimplemented, and this has continued to impede Nepal´s exports to India. The upcoming Inter-Governmental Committee meeting will focus on that,” said a source at the Ministry of Foreign Affairs.
He informed Republica that Nepal forwarded a 13-point agenda for the talks a couple of days ago.
Among the major items on the agenda, Nepal is preparing to ask India to facilitate its attempt to import LPG from third countries via the Indian port of Haldia. In this connection, Nepal will mainly request India to pledge storage and blending facilities and waive value added tax emanating in the process.
So far, Nepal has been sourcing its fuel from Indian Oil Corporation (IOC) - an Indian government undertaking, and under the bilateral agreement India has been exempting all forms of taxes on supplies to Nepal. “India has ever extended good support to Nepal in petroleum trade. We are hopefull it will extend similar support for third country import as well,” said the source.
Nepal will also push for the signing of a Letter of Exchange to end the existing convoy system along Kakadbhitta-Fulbari -- the overland transit route for Nepal-Bangladesh trade. At present, exporters need to gather at least 25 carriers to get escorting facilities.
The Nepali side will also propose an earliest opening of the Rohanpur-Sighabad railway route to boost trade with Bangladesh.
Nepal has expressed readiness to discuss India´s proposal on introducing an additional lock system at Vishakhapatnam Port-- an alternative port to Kolkatta -- for the transit of goods to Nepal through India.
“Keeping in view the inconveniences faced by Nepali businessmen at Kolkata port due to poor infrastructure and insufficient water level, we are ready to take up introduction of an additional lock at Vishakhapatnam Port, which is comparatively better,” said the source.
Nepali business people have also been pressing the government to go to the extent of accepting an additional lock system at Vishakhapatnam to avoid Kolkata port where, according to them, clearance of goods is difficult due to congestion, low water level and poor dock infrastructure.
Similarly, the Nepali side will also discuss the possibility of exporting high-value crops to the southern neighbor.
“India is not only our closest neighbor but a big market for our agricultural produce, so we are demanding comfortable access for high-value agricultural produce from Nepal in a bid to boost commercialization of agriculture in Nepal through export promotion,” the source added.
Keeping in view the hassles concerning standards created by the Indian side in the export of agro-products, Nepal has also put the issue of Indian recognition for Nepal´s labs high on its agenda.
"We are proposing with the Indian side to provide accreditation to Nepali labs for verifying the quality standard of Nepali goods, something which has been a long-pending issue," said the source.
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