India-Nepal Inter-Governmental Committee Meeting to Be Held on January 9-10 in Kathmandu

Kathmandu (Nepal): The Inter-Governmental Committee (IGC) meeting between India and Nepal, focusing on trade, transit, and cooperation, is scheduled for January 9-10 in Kathmandu.

Nepal’s Ministry of Industry, Commerce, and Supplies is preparing for the meeting. According to Commerce Secretary Govind Bahadur Karki, the meeting will review the progress of ongoing trade and commerce projects between the two countries. He added that the IGC meeting is a regular occurrence, and Nepal does not have a specific agenda for this session.

The meeting is expected to address longstanding issues, including revising rules related to the Certificate of Origin (COO) and reviewing the duty-free access provided to Indian primary agricultural products. Additionally, proposals to amend the current mutual access framework for agricultural products, horticulture, floriculture, forest products, rice, pulses, flour, wheat bran, livestock, poultry, fish, honey, dairy products, and eggs will also be discussed.

Nepal has been facing challenges in competing with Indian agricultural products in its domestic market due to the duty-free access granted to Indian goods. As a result, Nepal is likely to propose imposing customs duties on Indian agricultural imports. Simultaneously, Nepal may also request the removal of customs duties on several Nepalese products exported to India.

The private sector in Nepal has suggested that the Ministry of Commerce raise issues related to export difficulties, such as anti-dumping duties, quarantine, food testing laboratories, and parking fees at integrated check posts, particularly for jute products, large cardamom, tea, and ginger. Experts have recommended that Nepal negotiate a reduction in the value addition requirement to achieve zero-duty export access to India. Currently, most Nepalese products face a 30% customs duty in India, and Nepal is expected to propose lowering it to 20% in this meeting.

India is not only Nepal’s largest trading partner but also a gateway for Nepal’s trade with third countries. Experts have urged Nepal to push for amendments to the transit treaty to ensure access to additional Indian ports, such as Dhamra Port in Odisha and Mundra Port in Gujarat. Nepal has specifically requested the inclusion of Dhamra Port for its transit needs and has sought a swift decision regarding Mundra Port.