Nepal, India ready to amend trade treaty

Kathmandu, Oct 22: Nepal's Commerce Secretary Purushottam Ojha has said that both Nepal and India have agreed to amend the bilateral trade treaty within three months.

Talking to media after the meeting in Delhi on Tuesday, Ojha said the parties had agreed on the clauses to be amended in the existing bilateral trade treaty. He further said the meeting to work out the amendments would be held in Kathmandu. The treaty has been renewed twice since it was signed in 1996. The two countries have been discussing the amendments for the last two years.

Ojha said that the proposed amendments would improve Nepal's trade with India by ending the hassles Nepali entrepreneurs have been facing. India will also help Nepal increase connectivity.

India also agreed to help Nepal test the quality of food products exported to India and improve the infrastructure of laboratories in Nepal.

India also agreed to allow Nepal to use its railway. Nepal will now be able to use the Jogbani-Sinhabad track that enters Bangladesh at Rohanpur for tri-lateral trade with Bangladesh.

Both countries have agreed to open their airways for trade. India also agreed to scrap the quota system on import of vegetable ghee, copper products and zinc oxide.

A joint team will also visit the Banglabandh-Fulbari road to remove problems that have been creating hassles for Nepali traders.

India has also agreed to provide equal treatment to transactions made either in US dollars or Indian currency, a move that is expected to boost the competitiveness of Nepal products in the Indian market.

India assured that it will sort out obstacles in the export of readymade garments to India.

During Prime Minister Prachanda's visit to India last month, Indian businessmen had asked him to create a favourable environment for their investment in Nepal.

Both the countries had then theoretically agreed to ease and develop bilateral trade, Kantipur reported.

ANI