Unfair stance

India´s stance not to allow Nepal re-export third country goods through international agents based in her territory while trying to secure the same facility for itself is unfair. There is no reason why India should get this special preference for controlling illicit trade while it has been largely blaming Nepal for growing unofficial trade. If the unofficial trade is both sides’ concern, the two sides should get an even field to deal with it. The manner in which the denial came is inexplicable. In a bid to control unauthorized trade, the two sides had already agreed to allow re-export through multinational firms based in their territory. This provision was agreed to be applicable for both. But New Delhi sought change in the provision at the 11th hour of the prime minister’s visit. This gives little time and space for the two sides to resolve the difference. Consequently, officials had to leave the matter to the highest political level to resolve, something which was quite unnecessary.



This is very unfortunate because that pushed the fate of the much-anticipated treaty in limbo. Also the situation left Nepal’s righteous call dependent on India’s mood, something which is definitely not a display of ‘good gesture’ by India during the maiden visit of Prime Minister Madhav Kumar Nepal to New Delhi. The action of India has instantly drawn a negative political connotation. Besides, the treaty to control unauthorized trade is directly related with the bilateral trade treaty. The latter aims to promote formal trade while the former aims to control illicit trade, and in turn, strengthen the latter. These two treaties complement each other. Because of this fact, Nepal and India had never dealt with them separately. One was reviewed while the other was being revised and both were renewed at the same time since those came into being in the second half of the 1970s. But the latest stalemate has forced Nepal to unbundle the two and sign bilateral trade treaty only, on which the two sides have no problem. And it is also unknown how India will react to this unbundling.



By pledging support to Nepal on ending non-tariff barriers in the revised trade treaty, India has shown one good gesture. By signing the treaty, it must turn that gesture into action. Any form of uneven deals will only harm sentiments on both the sides. There’s a feeling here in Nepal that India always bulldozes its way through to compel Nepal to agree to its terms and conditions. It is instances like these that lend credence to such charges. This can be easily avoided. India must address Nepal’s concerns in a fair way and create an environment whereby the two sides could adhere to the treaties’ signing schedule and spell out proudly that they are truly good neighbors.

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