PRABHAKAR GHIMIRE
KATHMANDU, Dec 26: Nepal
has rolled back its plan to get the newly agreed transit routes
incorporated in the new bilateral Transit Treaty due renewal next week
after it failed to hold crucial talks for finalizing nitty-gritty of
their operations with the southern neighbor due to differences over a
provision on additional lock system between different ministries.
“We should have finalized the details and cleared formalities by
now if we were to include the new routes in the treaty by now. But the
talks haven´t been held so far, and the treaty is expiring on January 5,
2013,” said a highly placed official at Ministry of Commerce and
Supplies (MoCS).
Given the situation, the government has now prepared to get Nepal-India
Transit Treaty renewed in the form that it exists presently under the
provision of automatic renewal.
“We sent a formal proposal to renew the treaty without any change in its
content to the Office of the Prime Minister and Council of Ministers
(OPMCM) on Monday. Once the PM, who also looks after the MoCS, approves
it, we will forward it to the cabinet for endorsement,” said Lal Mani
Joshi, secretary at the MoCS, told Republica.
Renewal of treaty without any change would mean Nepal would not be able
to utilize the five recently agreed transit routes, fully operationalize
Vishakapatnam Sea Port -- the new port opened for Nepal´s third country
trade, and operate cargo train between inland container depot (ICD) in
Birgunj and Bangladesh.
Officials at the MoCS have been pushing for earliest operations of the
new routes as they would have enhanced speed of movement of cargoes in
transit (as Vishakapatnam is more efficient port than Kolkata), thereby
reducing cost. Likewise, operations of rail transportation would have
greatly smoothened country´s bilateral trade with Bangladesh.
The MoCS officials blamed the delay to the Ministry of Foreign Affairs (MoFA).
“We had unofficially discussed on the changes on the treaty with the
Indian counterpart and they had agreed as well. However, despite our
repeated requests, MoFA neither moved that file officially to India nor
coordinated that much needed bilateral meeting, which was necessary to
finalize the nitty-gritty,” said the MoCS official.
Top officials at the MoFA agreed as well. And they attributed such lack
of cooperation by the ministry to the strong objection of Foreign
Minister Narayan Kaji Shrestha to a provision of the draft that allowed
India to impose additional lock on containers destined to Nepal.
“We operated with single-lock system for decades; what´s problem with it
now? India´s proposal to impose additional lock goes against the spirit
of internationally agreed transit rights. Hence, Minister Shrestha is
against it,” stated a MoFA official, requesting anonymity.
MoFA believes double lock would not only curb Nepal´s transit rights but
also add hassles to Nepal´s third country trade cargoes in India.
However, top officials at MoCS along with experts and a section of
traders believe the proposed additional lock system will facilitate
smooth movement of containers from Visakhapatnam, rather than hindering
the goods in transit.
Trade experts have been emphasizing for operationalizing the new routes
as they would enable Nepal to access the newly agreed Vishakapatnam sea
port, which is more efficient than Kolkata port, for carrying out third
country trade.
Likewise, inclusion of rail transit route and Fulbari-Banglabandh land
route in the treaty is believed to do away with current problems that
Nepali traders face while trading with Bangladesh. Most importantly, it
will also ensure Nepal´s access to an alternate port of Mongla in
Bangladesh for carrying out third country trade.
Citing concern over security and depletion of goods along the route to
Nepal from Kolkata, the southern neighbor has long been putting pressure
on Nepali officials to agree on the additional lock system in
Visakhapatnam before the renewal of the transit treaty. India has
already put in place the system on Kolkata route in August last year.
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