Tag Archives: trade

American Diplomatic Cable: US Criticizes India for Unfairly Treating Nepal

…we remain deeply concerned over India’s apparent unwillingness to collaborate fully in regional efforts which stand to bring much-needed, long-term benefit to poverty-stricken Nepal.

2003-03-04 04:50 
C O N F I D E N T I A L SECTION 01 OF 02 KATHMANDU 000382 

SIPDIS 

STATE FOR SA DAS DON CAMP, SA/INS, AND SA/RA
STATE PLEASE PASS AID/ANE - D MCCLUSKEY, C LOWRY, G
WEYNAND, J WILSON
LONDON FOR POL/RIEDEL
NSC FOR E MILLARD 

E.O. 12958: DECL: 03/03/2008
TAGS: EAID ECIN ENRG PREL
SUBJECT: INDO-NEPAL CROSS-BORDER ENERGY TRADE STAGNATES 

REF: KATHMANDU 314 

Classified By: DCM Robert K. Boggs, for reasons 1.5(b) and (d). 

ś1.  (C) SUMMARY: Nepal's Minister for Water Resources Dipak
Gyawali is sharply critical of India's policies on
cross-border energy trade.  He told us that he believes New
Delhi focuses on the strategic aspects of water and energy to
the exclusion of economics.  Despite Nepal's current power
surplus, Gyawali understands that Nepal will need to develop
storage capacity in the future, in addition to slated
run-of-the-river projects, in order to compensate for the
high seasonal variability of water flows.  He believes that
joint venture models have the greatest potential for tapping
Nepal's huge hydroelectric potential.  In our view, India's
resistance to joining South Asian regional initiatives is
holding back the economic development of both countries and
will impede national as well as donor-funded efforts to
alleviate South Asia's poverty.  Please see action request
for Department and Embassy New Delhi in final paragraph.  End
Summary.

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Will India Allow Nepal-Bangladesh Trade?

After agreeing to a rail link between Nepal and Bangladesh, will India allow the two countries to use that?It didn’t happen in 1976 when Bangladesh and Nepal signed a transit agreement for boosting bilateral trade but failed to implemented it as India did not allow its territory to be used for passage at that time. Here’s a report that appeared in a Bangladeshi newspaper that caught our attention:

Doubt over benefit from Nepal rail link: Bangladeshi paper

Analysts emphasise two-way transit, use of Chittagong and Mongla ports by the Himalayan country. By Sajjadur Rahman/ The Daily Star (Bangladesh)

A rail transit between Bangladesh and Nepal, as desired by India at the foreign secretary level talks in Dhaka, could only be fruitful if Nepal is given a go-ahead for external trade through the use of Bangladesh’s Mongla and Chittagong ports, say analysts.

“This is not very clear whether Nepal will be allowed to use Bangladesh ports for its exports and imports,” said Dr M Rahmatullah, a noted transport expert and former director (transport) of the UN Economic and Social Commission for Asia and the Pacific (Escap).

No side will benefit from the proposed transit facility unless the Himalayan landlocked country does its foreign trade via Bangladesh, viewed Mustafizur Rahman, executive director of the Centre for Policy Dialogue (CPD).

“What I have understood from the talks it must be a two-way traffic and Nepal should be allowed to go to a third country via Bangladesh,” said Rahman of the private think tank. Continue reading