Uncertainty over trade talks put infra development works in limbo

KATHMANDU, March 26: Delay in bilateral trade talks between Nepal and India has left the process of developing of trade infrastructures, which are crucial for boosting Nepal´s international trade, in limbo.



The dates for Nepal-India Intergovernmental Sub-committee (IGSC) and Intergovernmental Committee (IGC) meetings, which are generally held every six months, are still uncertain. It has already been more than two years since the last IGSC meeting was held. [break]The joint-secretary level meeting was last held in the first week of March 2011.



Similarly, the last meeting of secretary-level IGC meeting was held in December, 2011.



Sarad Bikram Rana, executive director of Nepal Intermodal Transport Development Committee (NITDC), said uncertainty over talks between senior trade officials of the two countries has affected the process of developing vital trade and transit infrastructures.



The last IGC meeting had decided to assess technical and economical viability of opening a new trade point in Dodhara-Chandni area of far-western region.



“But the decision couldn´t be implemented in the absence of follow up meeting after the last meeting.



The meeting had assigned joint secretaries of both the countries to conduct on site inspection to assess technical and economic viability of the proposed trade point.

Similarly, the process of opening railheads in Jogbani and Nautanawa of India to support bi-lateral trade via Kolkata port as envisaged by the last IGC meeting has also become uncertain due to delay in trade talks.



As per the provisions in the existing transit treaty, Nepal has been using only the Birgunj-Kolkata route for its third country trade.



Similarly, the two countries have also not been able to implement the decision to allow transit of goods on hoodless cargos containers from Kolkata to Nepali border.

As per the existing Railway Service Agreement (RSA), Nepal´s third country imports can be transported only in hooded wagons and containers.



Rana also said the modality of transshipment of goods to Nepal through India is still to be fixed as the process of bilateral trade negotiation has come to a standstill.



“If we agree on additional one-time lock system on Nepal bound third country cargoes, customs clearance works at Kolkata port will be easier,” Rana said.



Additional one-time lock system is the provision wherein Indian customs officials put extra lock on Nepal bound third-country containers to ensure that there would not be any depletion in cargoes.

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