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Home > World

Nepal Seeks to Address Trade Barriers with India at Inter-Governmental Sub-Committee Meeting

Pedro Espinola Special Correspondent / Updated : 2025-01-08 16:34:33
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Kathmandu: Nepal's agenda for the upcoming Nepal-India Inter-Governmental Sub-Committee (IGSC) on Trade, Transit, and Cooperation to Combat Unauthorised Trade will prioritize removing hurdles hindering Nepali exports to India.

Key concerns include the Indian government's new Bureau of Indian Standards (BIS) certification rules, which have significantly delayed Nepali exports. Nepali officials are seeking a mutual recognition agreement to streamline the certification process.

Implementation of Previous Agreements Remains a Challenge:

Trade experts criticized the lack of implementation of previous IGSC agreements. "The implementation of agreements after an IGSC meeting is missing," said Posh Raj Pandey, chairman of the South Asia Watch of Economics, Environment and Trade.

Former commerce secretary Purushottam Ojha emphasized the need for robust monitoring and follow-up mechanisms to ensure the implementation of agreed decisions.

Key Issues to be Discussed:

BIS Certification: Addressing the challenges faced by Nepali exporters in obtaining BIS certification for their products.
Trade Treaty Review: Seeking amendments to the 2009 Trade Treaty, particularly allowing Nepal to impose duties on heavily subsidized Indian agricultural products.
Tariff Rate Quota: Requesting the removal of the tariff rate quota imposed by India, which is prohibited under WTO rules.
West Coast Port Access: Seeking access to Indian ports on the West Coast to facilitate trade with third countries.
Electronic Data Exchange: Promoting the exchange of information such as letters of credit and container movements to improve trade efficiency.
Combating Smuggling: Strengthening mechanisms to curb the smuggling of goods from India to Nepal.
Addressing Non-Tariff Barriers: Removing non-tariff barriers imposed by India on Nepali products.

Experts Emphasize the Need for:

Mutual Recognition Agreements: Establishing sector-specific agreements to recognize Nepali standards in India.
Addressing Trade Deficit: Focusing on minimizing the trade deficit with India and increasing Nepali exports.
Resolving SPS Issues: Resolving issues related to sanitary and phytosanitary (SPS) test certification to facilitate the export of agricultural products.
The meeting is expected to play a crucial role in addressing the challenges faced by Nepali exporters and improving bilateral trade relations between the two countries.

[Copyright (c) Global Economic Times. All Rights Reserved.]

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Pedro Espinola Special Correspondent
Pedro Espinola Special Correspondent

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