Dry port, China, Rasuwagadi, Tatopani Chinese PM (old archives)

Nepal-China to sign pact to construct four dry ports in customs

PRABHAKAR GHIMIRE

KATHMANDU, Dec 8

Nepal and China are soon signing an agreement to construct dry ports in Northern four border points between two countries in the bid to strengthen the bilateral trade removing procedural hassles in movement of goods between two countries.

A high level source at the Ministry of Foreign Affairs told Republica that the pact is scheduled to be signed during the upcoming visit of Chinese premier Wen Jiabao to Nepal in January.

 “The draft agreement which has recently proposed by China, envisioned at strengthening existing good neighborly status and boosting bilateral trade as well as movement of people from both countries. We are also preparing our agenda to be discussed during the visit,” said the source.

On the draft pact on Management of Ports in the China-Nepal Border, China has proposed to strengthen the border Pular- Yari, Jilong- Rasuwa, Zangmu- Kodari and Riwu- Olangchug Gola border crossings.

The agreement will be effective for ten years subject to be renewed with prior negotiation between two countries through diplomatic channels.

China has proposed Pulam-Yari port, Jilong- Rasuwa port and Zangmu-Kodari ports to be developed as the international ports where as Riwu-Olangchung Gola port to be limited as bi-lateral port.

“In addition to the proposed port, provision of opening temporary ports in line with the local laws with the bilateral negotiation,” the source added.

The provision on the agreement also included to suspend the movement of goods and people in the port temporarily keeping in view the national security, emergency, epidemic and disasters.

“Both parties have to strengthen the infrastructure and inspection facilities in the proposed port to improve the passages and their capacity that would facilitate the bilateral trade and movement of people,” further added the source. The design and construction of port will be determined as per the future need for bilateral trade.

The source said the Chinese side has also proposed port administrations and local government of both countries to lead the mechanism for the implementation by establishing proper coordination within them. Similarly, inspection offices to be set up in the port will oversee the border control, customs and quarantine depots.

Construction of dry port at Larcha of Sindhupalchowk is beginning soon with the Chinese support to facilitate the trade along Tatipani customs- the largest northern customs.

A total of six customs points -- Olangchugola, Kimathanka, Tatopani, Rasuwagadhi, Mustang and Yari -- have been opened along the border with China.

Nepal had requested to the northern neighbor at the second meeting of Nepal-Tibet Trade Facilitation Committee (NTTFC) -- a bilateral talks forum -- held on May 8 to 10 in Kathmandu, to support in strengthening the northern border points.

Nepali traders have been movement of goods and people through the northern border.

------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

BACKGROUND

REPUBLICA

KATHMANDU, May 4: Nepal is requesting China to upgrade infrastructure along Rasuwagadhi-Kerung trade route and also open a branch of a Chinese bank to facilitate bilateral trade during the upcoming bi-lateral trade talks, according to officials of Ministry of Commerce and Supplies (MoCS).

The second meeting of Nepal-Tibet Trade Facilitation Committee (NTTFC) -- a bilateral talks forum -- is scheduled for May 8 to 10 in Kathmandu. The first meeting was held in Lhasa, Tibet, in April last year. An eight-member Chinese delegation led by Ye Yinchuan, deputy secretary general for trade of Tibet Autonomous Region, is participating in the meeting.

Purushottam Ojha, secretary at the MoCS, said Nepal would also push for removal of non-tariff barriers and improvement of infrastructure and services to facilitate movement of goods and give impetus to bilateral trade so that the country could narrow down burgeoning trade deficit with the worlds´ second largest economy.

“We are also requesting China to provide zero-tariff entry facility to goods of Nepal´s export interest and assistance to upgrade trade-related infrastructure like construction of dry port and upgrading of customs facility in Tatopani,” Ojha told Republica on Wednesday.

Nepal will also its northern neighbor to complete the construction and improvement of 21-km Rasuwagadhi-Kerung roads. Rasuwagadhi customs is the second largest customs points for Nepal-China trade after Tatopani customs.

Designing of dry port to be constructed in Larcha of Sindhupalchowk is underway to facilitate the trade along Tatipani customs.

A total of six customs points -- Olangchugola, Kimathanka, Tatopani, Rasuwagadhi, Mustang and Yari -- have been opened along the border with China.

According to Ojha, 361 Nepali goods being exported to the northern neighbor fall under the facility of zero tariff offered by China to a total of 4,721 goods imported from Least Developed Countries (LDCs), including Nepal.

During the talks, the Nepali side also raising the problems related to quarantine as well as banking and language problems that Nepali traders are facing.

“We are also requesting Chinese side to open a branch of a Chinese bank to facilitate bilateral trade,” added Ojha.

The two sides are also signing a Memorandum of Understanding (MoU) on organizing a Nepal-China-Tibet Economic and Trade Fair in Kathmandu in September this year. The fair is being organized to promote goods of both the countries. Such trade fair was earlier organized in Sighatse of Tibet last year.

Given the slow progress in utilizing zero-tariff offered by China in different products, the Nepali side will also seek ways to explore market for Nepali agro-produces, medicinal herbs, cement and handicrafts products.

According to Trade and Export Promotion Center (TEPC), trade deficit with China shot up to Rs 38.2 billion during fiscal year 2009/10 from Rs 11 billion recorded during the during in 2005/06. Nepal has been exporting refined flour, handicraft items and noodles, among others, to China.

Nepal and China had signed the MoU to form the NTTFC with the objective of facilitate bi-lateral trade on Sept 9, 2009.