Nepal-India IGC meet reviews bilateral trade, economic ties

KATHMANDU: Nepal-India Inter-Governmental Committee (IGC) has conducted a comprehensive review of all areas of bilateral trade and economic relations. The IGC, a bilateral mechanism aimed at strengthening trade and business relations between the two countries, held a meeting in Kathmandu on January 10 and 11.

The agenda included a review of the transit treaty and trade treaty, including the electrification of Raxaul-Birgunj railway line, proposed amendments to existing agreements, coordination of norms, and gradual development of trade infrastructure. Both sides also reviewed issues related to mutual market access, intellectual property rights (IPR), and taxes.

During the meeting, the Indian delegation informed that Nepal’s request for the supply of 200,000 metric tonnes of wheat had been approved. The Nepali side expressed gratitude for India’s continued support in ensuring the supply of essential commodities to Nepal.

At Nepal’s request, India agreed that the maximum axle weight of 18.5 tonnes for two-axle vehicles and 28 tonnes for three-axle vehicles in the case of cargo-in-transit in Kakarbhitta (Nepal) to Banglabandh (Bangladesh) via Phulbari (India) would also apply to Nepali vehicles, in accordance with the prevailing regulations of the Ministry of Road Transport and Highways.

India also informed that Sal (Shorea robusta) seeds and squash had been included in India’s plant quarantine order, responding to Nepal's requests. Additionally, requests for the inclusion of Jatamsi-root extract, Fragrant Kokila Berry extract, Fragrant Rhizome extract, and Timur Berry extract in the list of processed products were accepted.

Regarding India's request, Nepal indicated a positive stance towards reviewing documents related to the reclassification of products such as ‘IPAQE 28’ in its technical system.

The Indian side addressed issues faced in the export of milk to Nepal, and the Nepali side agreed to positively consider the request for milk products, including mohi (whey) and cheese, which are not produced in sufficient quantities in Nepal.

The meeting welcomed bilateral initiatives aimed at strengthening uninterrupted inter-country connectivity between India and Nepal through the construction of new integrated checkposts and railway links, among others.

Both sides expressed their commitment to advancing bilateral connectivity, reflecting a shared vision of prosperous bilateral trade. They agreed to form a joint working group to discuss online approval with Nepal and the South Asian Free Trade Area (SAFTA).

Gobinda Bahadur Karkee, Secretary at the Ministry of Industry, Commerce and Supplies, led the Nepali delegation, while Sunil Barthwal, Commerce Secretary at the Indian Ministry of Commerce, led the Indian delegation. Senior officials from the Embassy of India in Kathmandu and various ministries also attended the meeting.

The joint secretary-level Inter-Governmental Sub-Committee (IGSC) meeting on trade, transit, and cooperation to control unauthorised trade was held in Kathmandu on January 12 and 13 last year.