India and Nepal in last week of April 2018 agreed to review their bilateral trade treaty by July 2018. The decision was taken during a meeting of India-Nepal Inter-Government Committee (IGC) on Trade, Transit and Cooperation to Control Unauthorised Trade in Kathmandu.
Both countries agreed to initiate a comprehensive review of the treaty by July 2018. The treaty was last revised in 2009.
• Both the sides also discussed amendments to the bilateral Treaty of Transit signed in 1999 to further facilitate movement of Nepal’s trade with third countries.
• The two countries also agreed on synchronising development of border trade infrastructure to ensure timely utilization of investment in border infrastructure, as most of the bilateral trade takes place through land customs stations across the border between India and Nepal.
• In order to enhance the trade volume, both the sides also emphasised the need for harmonisation of standards and expediting progress on MoUs between the concerned agencies including BIS and FSSAI from the Indian side.
• The two sides also agreed to work towards mutual recognition of each other's testing and certifications.
• In order to ensure regular inputs from business and investors, both the sides agreed to constitute India-Nepal Joint Business Forum consisting of industry representatives from the two countries that will function as an institutional B2B mechanism.
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Who: India and Nepal