Thaindian News

Kathmandu, May 9 (IANS) The two-day trade talks between Nepal and Tibet kicked off in Kathmandu Monday, seeking to ratchet up bilateral trade and cooperation.

The Nepal-Tibet Trade Facilitation Committee talks are being led by Toya Narayan Gyawali, joint secretary at Nepal’s ministry of commerce and supplies, and Ye Yinchuan, deputy secretary general of Tibet.

Nepal has been the biggest trade partner of Tibet, its immediate northern neighbour, since 2001, providing a captive market for cheap Chinese goods that have hampered the development and growth of Nepal’s own industries.

Last year, bilateral trade accounted for $542 million, indicating a whopping 65 percent rise over the previous year. Chinese agencies say trade with Nepal accounts for over 90 percent of Tibet’s trade with the outside world.

However, Nepal’s exports have shrunk, especially after China stopped the import of handicraft items related to Tibetan Buddhism. Currently, the ballooning deficit in Nepal-China trade stands at NRS 26 billion.

According to the Nepali side, they would take up the issue of duty-free access for Nepali goods. Though Nepal is allowed zero tariff on over 4,000 items, its exports still remain small thanks to the stringent Chinese quarantine and quality control regulations.

Inferior Chinese goods, on the other hand, are dumped indiscriminately in Nepal with unlawful trade mounting.

Nepali traders have also been complaining of discrimination by Chinese border authorities and in the past, there have been several skirmishes, leading to border trade coming to a halt.

The development of infrastructure at major custom points and Chinese foreign investment in Nepal will also be discussed.

Both sides will also discuss the Tibet-Nepal Economic and Trade Fair that started in 1991 and is held every two years, alternately in China and Nepal.

This year, it is Kathmandu’s turn to host the fair.