Trade Agreement Between Nepal And China

After the 2015 Indian blockade, the Nepalese government tried to diversify trade and access to the sea via China. But five years later, inertia and disinterest in Kathmandu have paralyzed a series of bilateral agreements signed with its northern neighbour. In 2007/2008, China began building a 770-kilometre railway linking the Tibetan capital, Lhasa, to the Nepalese border town of Khasa and connecting Nepal to China`s wider national rail network. [40] At a meeting between Chinese and Nepalese officials on 25 April 2008, the Chinese delegation announced its intention to extend the Qingzang railway to Zhangmu (Nepal: Khasa), on the Nepalese border. Nepal had requested the extension of the railway to allow trade and tourism between the two nations. On the occasion of the visit of the Nepalese Prime Minister to China, it was announced that construction work would be completed by 2020. [18] The Lhasa-Shigatse section was opened in August 2014. To promote the trade balance, China has offered duty-free access to more than 8,000 Nepalese products. To fully exploit and exploit trade relations, experts should say that Nepal should exploit its potential and explore more exportable goods and goods. KATHMANDU, December 31 (Xinhua) — Nepal-China`s economic and trade relations have grown steadily in 2018, with China remaining the largest source of foreign direct investment (Di), the second-largest source of tourists and trading partners. Economist Bhoj Raj Poudel wrote in the Kathmandu Post, an English daily newspaper in Nepal, on Monday about the importance of TTA.

“While it has so far been symbolic, this agreement has been essential in that, by reducing our traditional dependence on India, it has given a sense of trade diversification. Over time, the signing of the Trade and Transit Agreement will inevitably pave the way for broader engagement with China. Foreign policy expert Nischal Nath Pandey says the lack of progress in monitoring agreements with China is not new. Similar delays were also recorded in the implementation of the project with India. He says: “The lack of cooperation between Nepalese ministries makes implementation weak.” China is Nepal`s second largest trading partner. In 2017/18, total exports to China totaled more than $23 million. Over the same period, imports from China exceeded $1.5 billion. Nepal`s trade deficit with China is growing. Although China has granted more than 8,000 Nepalese products a zero tariff import facility since 2009, Nepal has not been able to reduce the trade deficit. Nepal regularly participates in various exhibitions and exhibitions in China. Nepal-China is a regular semi-annual event organized by both sides to improve trade interaction and promote economic cooperation between Nepal and ART, China. Nepal participated in the China International Import Expo in Shanghai in November 2018.