India and Nepal have agreed to take steps such as comprehensive review of the existing bilateral trade treaty to further boost two way commerce and investments between the countries, the commerce ministry today said.
This was agreed during the meeting of the India-Nepal Inter Government Committee (IGC) on Trade, Transit and Cooperation to Control Unauthorised Trade in Kathmandu.
This committee provides a platform for discussing and reviewing bilateral trade and transit related issues.
"Both countries agreed to initiate, by July, a comprehensive review of the bilateral Treaty of Trade which governs the bilateral trade and was last revised in 2009, considering all factors," the ministry said in a statement.
The meeting also discussed amendments to the bilateral Treaty of Transit, signed in 1999, to further facilitate transit movement of Nepal's trade with third countries by expanding transit points, simplification of procedures, electronic cargo tracking and also enabling movement of Indian cargo through Nepali territory.
Besides, both the sides aim to consolidate all earlier amendments to the Treaty of Transit, within a month, it added.
Since most bilateral trade takes place through land customs stations across the border between India and Nepal, the two countries also agreed on synchronised development of border trade infrastructure so as to ensure timely utilisation of the investment in border infrastructure.
In order to enhance the volume of trade, the two countries emphasised on the need for bilateral harmonisation of standards.
The two sides further agreed to work towards mutual recognition of each other's testing and certifications.
In order to ensure regular inputs from business and investors, both the sides had earlier agreed to constitute India-Nepal Joint Business Forum consisting of industry representatives from the two countries that will function as an institutional B2B mechanism for providing policy level inputs on trade and investment.
Both the countries are aiming at holding the first meeting of the forum shortly, it added.
The two-day meeting concluded on April 27. Indian side was led by Commerce Secretary Rita Teaotia.
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