New Delhi
8 June 2006
Economic aid package by India notwithstanding, Nepal has cited
duty-free treatment given by China to Nepalese goods to seek a review of the India-
Nepal Trade Treaty and a five-year exemption on countervailing duty on Nepalese
exports to India. Kathmandu's assertions come ahead of a likely visit by Prime Minister
Girija Prasad Koirala to Beijing. Health permitting, Mr Koirala is expected to undertake
the "traditional" visit at a mutually convenient date.
Besides economy recovery of Nepal, discussions between New Delhi and Kathmandu
have centred around Maoists and Monarchy. Mr Koirala has interacted with former prime
minister Atal Bihari Vajpayee, BJP President Rajnath Singh and Mr D Raja of CPI among
others during his visit. The BJP has said constitutional monarchy should be continued.
For its part, New Delhi has been ambivalent on the future of monarchy and only asked
the Maoists to shun acts of violence.
Nepalese Finance Minister Dr Ram Sharan Mahat, who has to present a Budget before
the end of current fiscal in mid-July, on Thursday articulated Kathmandu's position.
"Nepal's strategic location between the two emerging economic power houses, India and
China, where Nepalese exports enjoy preferential access, offer other exciting
possibilities," he said. He sought an "improvement" upon the existing India-Nepal Trade
Treaty, which is due for renewal on March 5 next year.
Kathmandu, which recently signed a Letter of Intent on zero tariff in customs duty during
the visit by Chinese State Councilor Tang Jiaxuan, is concerned that its trade deficit with
New Delhi was widening with "very significant increase in export from India to Nepal".
The Mahakali River Integrated Development Treaty of 1996 also has not taken off. Mr
Mahat suggested hydro-power and tourism for Indian investments and added that India
was the "obvious market" for Nepal's surplus power.
New Delhi, meanwhile, has indicated it would accede to Kathmandu's request for
removal of four per cent additional duty imposed on Nepalese exports into India. The
visiting Nepalese delegation sought the scrapping of the duty in their meetings with
Union Finance Minister P Chidambaram.
No comments:
Post a Comment