China Nepal Free Trade Agreement

The signing of the Belt and Road cooperation agreement between Nepal and China on 12 May 2017 in Kathmandu is expected to open new avenues for bilateral cooperation in mutually agreed areas. It aims to promote mutually beneficial cooperation between Nepal and China in various areas such as the economy, environment, technology and culture. THE VISE PROGRAM To promote cooperation on issues of political exchange, infrastructure connectivity, commercial connectivity, financial integration and people connectivity. China is the second largest source of foreign tourists after Nepal. In 2018, 164,694 Chinese tourists visited Nepal. Effective January 1, 2016, the Nepalese government waived visa fees for Chinese tourists. The Chinese government had announced 2017 as a year of promoting Nepalese tourism in China. In the run-up to the next visit to Nepal in 2020, the two sides have undertaken joint efforts to promote Nepal in China and encourage Chinese companies to invest in tourism sectors in Nepal. Nepal is served by rasuwagadhi and Tatopani for commercial and international travelers. There are four other border points for bilateral trade. Nepal has a direct connection with Lhasa, Chengdu, Kunming, Guangzhou and Hong Kong SAR from China. 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. The 16th China Tibet Economic and Trade Fair was held in Lhasa from October 24 to 29, 2018. Chinese aid to Nepal is divided into three categories: subsidies (free aid), zero-rate loans and loans granted. Chinese financial and technical assistance to Nepal has contributed significantly to Nepal`s development efforts in the areas of infrastructure construction, industrialization, human resource development, health, education, water resources, sport, etc. In 1955, Nepal renounced diplomatic relations with the People`s Republic of China, exchanged ambassadors until 1960. In 1956, the two nations signed a new treaty to end the Treaty of Thapathali of 1856 and Nepal recognized Tibet as part of China.

[1] In 1960, Nepal and China signed an agreement on cross-border settlements and a “Sino-Nepal Treaty on Peace and Friendship.” [23] Nepal has also begun to support China`s change of headquarters at the United Nations. [1] In 1961, Nepal and China agreed on the construction of an all-weather road linking Kathmandu, the Nepalese capital, to Tibet.

Comments

comments