India-Nepal sign treaty of Trade & Agreement of Cooperation to Control Unautherized Trade

India-Nepal sign treaty of Trade & Agreement of Cooperation to Control Unautherized Trade

Anand Sharma, Union Minister of Commerce and Industry and Rajendra Mahto, Nepalese Minister of Commerce and Supplies on Tuesday signed the 2009 India-Nepal Treaty of Trade and Agreement of Cooperation to Control Unauthorised Trade.

The 2009 Trade Treaty revises the 1996 Trade Treaty between the two countries. The 1996 Treaty has been a turning point in the trade relations between the two countries and resulted in phenomenal growth of bilateral trade from Rs. 28.1 billion in 1995-96 to Rs. 204.8 billion in 2008-09. While the Nepalese exports to India increased from Rs. 3.7 billion to Rs. 40.9 billion, the Indian exports to Nepal increased from Rs. 24.4 billion to Rs. 163.9 billion during the period -1995- 2009.

After signing the agreement, Sharma said, “There is need to shift the Indo-Nepal trade to the higher level and attain better qualitative dimensions. The opening of new lines of products and duty free access in India will provide further boost to the growing Indo-Nepal Trade”

The 2009 Agreement of Cooperation to Control Unauthorized Trade will allow export of goods imported by Nepal from India to the third countries without necessity of carrying out any manufacturing activity in Nepal. This will enhance exports from Nepal to third countries where it has a better market access as compared to India. Similarly it will allow export of the goods imported by India from Nepal to third countries. This will help Nepalese exporters to take advantage of the third country market access developed by the Indian export houses.

“The revised treaty would help facilitate Trade by opening new land routes for trade between the two countries. The current treaty is expected to provide further access to Nepalese products into India and to enhance and expand bilateral trade between the two countries,”, the Minister further added.

Courtesy: Ministry of Commerce and Industry release on 27 Oct 09.