India ready to allow Nepal export third-country goods via its transit points India has expressed readiness to amend the provisions in existing bilateral transit treaty to pave the way for Nepal to export third-country goods to overseas markets via its customs points. The existing Nepal-India Treaty of Transit prohibits Nepal from exporting goods originating in third countries via India. “India has responded positively to our proposal to remove the provision that bars Nepal from exporting goods originating in third countries through its customs points,” a senior official at the Ministry of Commerce and Supplies told Republica on Tuesday. “We´ve drafted a proposal for Letter of Exchange (LoE) and are collecting feedbacks from stakeholders.” The official said the draft has been circulated to Ministry of Foreign Affairs, Ministry of Law and Justice, Ministry of Home Affairs and business organizations to collect their feedbacks before giving it a final shape for negotiation with the southern neighbor. Mainly, equipment and products imported by different projects and foreign participants of different trade fairs are among the goods that need to be repatriated to their countries of origin after their use for a certain period in Nepal. Though existing provisions in bilateral transit treaty don´t allow export of goods originating in third countries via Indian transit points, Indian officials had been ignoring the provision until May. In May, Indian officials restricted flow of goods originating in third countries from Kolkata port, prompting Nepali officials to request their Indian counterparts to restore the earlier practice. After series of diplomatic efforts by Nepalese Consulate General Office in Kolkata and the MoCS, Indian officials had agreed to suspend the restriction on movement of such goods until the provision in the treaty is amended in the Inter Governmental Committee (IGC) meeting between trade officials of both countries. However, the source said the treaty can be amended through the Letter of Exchange between trade officials of both the countries. After the Indian government lifted restriction in mid-June, goods stuck in the Kolkata customs for more than a month were finally shipped to the overseas destinations. Though Nepal and India have several trade issues, including opening up new trade routes and designating new ports for Nepal´s third country trade, they are still pending in the absence of IGC meeting. Weak diplomatic efforts by Nepal and lingering political instability in the country have affected bilateral trade talks with Asia´s third largest economy and other crucial trade partners. The IGC, a commerce secretary level-meeting which is supposed to be held every year, is now two years overdue.
Posted on: Thu, 19 Sep 2013 00:42:59 +0000
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