KATHMANDU, DEC 23 -
Nepali automobile dealers can now drive automobiles imported from countries other than India through Indian roads to Nepal.
During a commerce secretary-level “Inter Governmental Committee (IGC)” meeting that concluded here on Sunday, the southern neighbour agreed to allow imported vehicles to be driven through Indian roads to Nepal from Kolkata’s Haldiya Port “on its own power”.
Nepali automobile dealers had long been demanding such a provision, saying that transporting vehicles imported from countries other than India in containers increased
their costs.
“The complications regarding this will be resolved through a mechanism to be arranged through the Letter of Exchange between the two sides,” read a press release issued after the meeting.
Besides, the two sides also agreed that India would allow using the Jogbani-Biratnagar and Nautanawa-Bhairahawa customs points, in addition to Raxual-Birgjunj, while importing bulk cargo from other countries. Earlier, only Raxual-Birgunj customs point was used for such imports.
During the meeting, India also agreed to provide 10,000 hybrid cows as demanded by Nepal, seeking a detailed proposal. Nepal had sought the supply of improved breeds of cow in order to meet the milk demand and help dairy farmers boost milk production.
India also agreed to compromise on its position on 5 percent agriculture development fee Nepal has been imposing on Indian agriculture products. The Southern neighbor had reservations over the fee.
According to the press statement, India agreed on Nepal’s position that Nepal should not reduce the customs duty on Indian clinker and cement, admitting the current provisions didn't hurt India’s exports to Nepal.
As per Nepal’s commitment to the World Trade Organization, the country has to remove agriculture development fee by 2013. But India agreed to adjust this issue in favor of Nepal.
“India had reservations over it, but they agreed not to discuss on the matter further,” said Madhav Regmi, Secretary at the Ministry of Commerce and Supply.
After the conclusion of the two-day meet, Regmi and Indian Commerce Secretary SR Rao signed an agreement on behalf of the two governments.
Regmi said in a press meet after the meeting that the agreement would help clarify many issues related to trade and transit and improve relationship between two countries.
“This accord could simplify cross cutting issues on tariff, non-tariff and para-tariff through technical assistance,” he said.
Rao said India was flexible on implementing suitable policies that would ensure trade balance sooner or later. Nepal faces a huge deficit in its trade with the southern neighbour.
“Besides focusing on trade in goods, Nepal also needs to focus on trade in services and attracting more investment from India,” said Rao, adding Nepal has to focus on reaping the benefits from Indian investment.
As per the agreement, the two sides also agreed to remove hurdles on quarantine certificates for the exports of agriculture, livestock and other products. The two countries will sign a separate mutual recognition agreement on this matter.
Other agreements include developing infrastructure at new customs points to facilitate bilateral trade; easing the current provision of transhipment of Nepal-bound cargo from countries other than India through Kolkata, making it less expensive; and India training Nepali stakeholders related to trade to enhance their capacity.
Nepali automobile dealers can now drive automobiles imported from countries other than India through Indian roads to Nepal.
During a commerce secretary-level “Inter Governmental Committee (IGC)” meeting that concluded here on Sunday, the southern neighbour agreed to allow imported vehicles to be driven through Indian roads to Nepal from Kolkata’s Haldiya Port “on its own power”.
Nepali automobile dealers had long been demanding such a provision, saying that transporting vehicles imported from countries other than India in containers increased
their costs.
“The complications regarding this will be resolved through a mechanism to be arranged through the Letter of Exchange between the two sides,” read a press release issued after the meeting.
Besides, the two sides also agreed that India would allow using the Jogbani-Biratnagar and Nautanawa-Bhairahawa customs points, in addition to Raxual-Birgjunj, while importing bulk cargo from other countries. Earlier, only Raxual-Birgunj customs point was used for such imports.
During the meeting, India also agreed to provide 10,000 hybrid cows as demanded by Nepal, seeking a detailed proposal. Nepal had sought the supply of improved breeds of cow in order to meet the milk demand and help dairy farmers boost milk production.
India also agreed to compromise on its position on 5 percent agriculture development fee Nepal has been imposing on Indian agriculture products. The Southern neighbor had reservations over the fee.
According to the press statement, India agreed on Nepal’s position that Nepal should not reduce the customs duty on Indian clinker and cement, admitting the current provisions didn't hurt India’s exports to Nepal.
As per Nepal’s commitment to the World Trade Organization, the country has to remove agriculture development fee by 2013. But India agreed to adjust this issue in favor of Nepal.
“India had reservations over it, but they agreed not to discuss on the matter further,” said Madhav Regmi, Secretary at the Ministry of Commerce and Supply.
After the conclusion of the two-day meet, Regmi and Indian Commerce Secretary SR Rao signed an agreement on behalf of the two governments.
Regmi said in a press meet after the meeting that the agreement would help clarify many issues related to trade and transit and improve relationship between two countries.
“This accord could simplify cross cutting issues on tariff, non-tariff and para-tariff through technical assistance,” he said.
Rao said India was flexible on implementing suitable policies that would ensure trade balance sooner or later. Nepal faces a huge deficit in its trade with the southern neighbour.
“Besides focusing on trade in goods, Nepal also needs to focus on trade in services and attracting more investment from India,” said Rao, adding Nepal has to focus on reaping the benefits from Indian investment.
As per the agreement, the two sides also agreed to remove hurdles on quarantine certificates for the exports of agriculture, livestock and other products. The two countries will sign a separate mutual recognition agreement on this matter.
Other agreements include developing infrastructure at new customs points to facilitate bilateral trade; easing the current provision of transhipment of Nepal-bound cargo from countries other than India through Kolkata, making it less expensive; and India training Nepali stakeholders related to trade to enhance their capacity.
Source: The Kathmandu Post
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