Such apprehension from the experts came mainly because India has already promised to open its market at zero-tariff for all LDCs, which will subject Nepali exports to more competition from other LDCs in the southern market.
"Still serious is; the new free trade agreement that India is signing with the European Union is going to leave additional 18 percent of Nepal´s exports vulnerable," said Ratnakar Adhikary, a trade expert at South Asia Watch on Trade, Economics and Environment, referring to a study of Commonwealth Secretariat.
Traders and economists have lauded the inclusion of removal of non-tariff barriers as binding provision in the treaty. But they have expressed dissatisfaction over the lack of ´time bound´ commitment for its implementation.
"Given the past experiences, this lack of categorical implementation commitment has put the actual translation of words into action in doubt," said Professor Dr Bishwambher Pyakuryal, senior economist.
Trade experts have urged the government to instantly list out non-tariff barriers impeding Nepal´s exports and seek India to eliminate those. They have also asked the Commerce Ministry to take urgent action towards identifying laboratory and standard upgrading requirements, so that mutual recognition of certification could be established soon.
Though India has agreed to recognize Nepali standard certification and pledged support for improving technical standards, quarantine and technical facilities, experts doubt India will seriously fulfill it until and unless Nepal pushed for it.
Traders, on the other hand, noted that the treaty alone would not help Nepal bridge its widening trade gap with India and urged the government to address problems faced by the domestic industries and investors.
Citing that the absence of pragmatic industrial policy has hit industrialization and expansion of export base, Arun Chaudhary, president of Nepal-India Chamber of Commerce and Industry demanded the government to re-engineer the industrial policy, laying special focus on capacity building of domestic entrepreneurs.
Commerce Secretary Purushottam Ojha said the new provision on rules of origin has reduced the value addition requirement to 27 percent from 30 percent, increased trade routes from 22 to 27 and opened scope for improving quality infrastructures and simplification of trade procedures.
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