Kathmandu, December 1:

Minister for industries, commerce and supplies, Hridayesh Tripathi today categorically said that the Nepal-India trade treaty which is expiring on March 5, 2007 would be renewed automatically for the benefit of both the countries.

Tripathi said this while speaking at a programme ‘Nepal-India Trade Treaty: Opportunities and Challenges’, organised by South Asia Watch on Trade, Economics and Environment (SAWTEE).

Assuring the audience at the function, the minister informed that the government of Nepal is actively engaged in renewing the trade treaty.

He also said that if there are any issues bothering the private sector, adjustments can be made to make the treaty more productive.

Even if the trade treaty is renewed automatically, both the governments of Nepal and India can revise some issues through letters of exchange, said experts at the function, an opinion to which the minister concurred.

Talking about the new political environment, Tripathy noted that it is a golden opportunity for Nepal at the global level.

The international community has taken Nepal’s development on a very positive note, he said.

Former ambassador of Nepal to India and Nepali Congress lawmaker Chakra Bastola said that the time has come for all of us to concentrate on development issues. The relationship with India should be capitalised on for developing new perspectives, said Bastola. “Despite our previous efforts in the past for boosting our economy, we could not formulate a different model to expedite our economy,” he said. While renewing the Trade Treaty, we need to do some serious homework taking into consideration Nepal’s future, Bastola noted.

Badri Prasad Ojha, management coordinator of FNCCI, reiterated that the automatic renewal of the trade treaty would be beneficial. He said that the government has to form a task force to discuss about a comprehensive economic cooperation package.

Purushottam Ojha, joint secretary at the ministry of industry, commerce and supplies opined that Nepal-India trade should look forward to economic integration.

Ojha said that since 2002, non-tariff barriers have hit trade relations between the two countries. Other problems on the trade front are customs procedures, documentation, trade facilitations and issue related to safeguarding measures.

He said the prospects of trade between Nepal and India is being hurt severely due to the lack of effective institutional mechanism.

Diwakar Golchha, first vice-president of FNCCI, said in the context of SAFTA being implemented, India has not reduced customs duties that have affected Nepal’s export to India.