Trade And Transit Agreement Between Nepal And China

The agreement was signed on April 29, 2019 during Nepalese President Bidhya Devi Bhandari`s visit to China to participate in the second Belt and Road forum for International Cooperation. Ten months after the end of national judicial proceedings, Beijing has finally informed Kathmandu of the implementation of this agreement. This protocol will allow Kathmandu access to Beijing`s four seaports in Tianjin, Shenzhen, Lianyungang and Zhanjiang, as well as three dry ports in Lanzhou, Lhasa and Xigatse. In early March 2016, Nepalese Prime Minister K P Sharma Oli also made an official visit to China at the invitation of 2.E. Li Keqiang, Prime Minister of the State Council of the People`s Republic of China. The two sides have signed various agreements and soft ones, including the transit traffic agreement. The protocol is expected to be implemented next month. Nepal will use six border points opened by China to pass through these ports. According to both sides, the centre of gravity of “reciprocal” cooperation between Nepal and China in various areas, such as the economy, environment, technology and culture. It aims to promote cooperation in political exchanges, trade links, financial integration and people networking. Nepal`s negotiations with India on transit rights have yielded mixed results. The 1978 Trade and Transit Treaty expired on 23 March 1989 due to differences on political and security issues and the request for a separate transit treaty in Nepal, in accordance with the UN Charter.

As a standstill, India has allocated four of the 21 trade posts previously used in Nepal to Nepal, both for transit purposes (Jogbani and Raxaul) and for bilateral trade purposes. It should be noted that Nepal is entitled to a transit route under international law. 4This limitation of the number of agencies concerned, transit trade and hence the economy. 5 In December 1991, the two countries signed two separate transit and trade agreements. But Nepal continued to demand more and better transit facilities in addition to the calcutta seaport. As a result, the contract was revised in December 2013. 6 At the Meeting of the Intergovernmental Committee (ICG) between Nepal and India in Kathmandu in April 2018, the two countries again discussed how to improve bilateral trade and transit trade. 7 Despite the regular revision and updating of the treaty, which takes into account Nepalese claims, it remains an important electoral theme in Nepal and one of the controversial issues in bilateral relations between India and Nepal. Traditionally, Nepal transports goods through the port of Calcutta with third countries.

The transit contract between Nepal and India was signed in 1978 and renewed in 2013. However, in 1989, India imposed a 15-month economic blockade on Nepal, which denied access to port facilities in Calcutta, Nepal, while Nepal was trying to buy Chinese anti-aircraft weapons. This route will allow Nepal to reactivate its cultural ties and its economy could be boosted by tourism from countries dominated by Buddhism, in addition to benefiting from transit trade.