KATHMANDU, Aug 10: Nepal has held a formal talk with Indian government in New Delhi to review treaty of trade and commerce to reduce the trade deficit.
A team led by Rabi Shankar Sainju, joint secretary at the Ministry of Commerce and Supplies has held formal talks for two days with his counterpart in New Delhi.
Nepal side submitted a proposal containing pints to be amended in the treaty of trade and commerce, said Secretary Chandra Prasad Ghimire.What is in the proposal?
The Treaty of Trade and Commerce has put both Nepal and India at an equal footing.
However, Nepal, whose percentage of imports is largely greater than exports, has not been able to maintain balance in trade with India.
Therefore, Nepal has floated a new proposal to review the treaty and create ideological basis in a bid to maintain such balance in the trade between the two countries.
Some Indian agricultural and some industrial goods will enter Nepal without tax. As Nepali products cannot compete with India in exporting goods, there is a huge imbalance in the trade and commerce as a result of which Nepal is facing massive trade deficit.
Therefore, Nepal has asked for protection in the commerce so as to promote sales of Nepali goods in the Indian market.