India, Nepal agree for new trade treaty

New Delhi, Aug 22 (PTI) India and Nepal Saturday reached
a new trade treaty and an agreement to control unauthorised
trade, particularly from a third country, aimed at widening
the bilateral economic engagement.

The trade treaty, which has been negotiated for the last
two years, aims at enlarging the scope of the existing
institutional framework, under which India gives duty-free
access to its market to goods manufactured in Nepal.

However, the trade treaty and the agreement to control
unauthorised trade would be formally signed later, an official
said.

The agreements were initialled by Commerce Secretary
Rahul Khullar and Nepalese Secretary of Commerce and Supplies
Purushottam Ojha here.

External Affairs Minister S M Krishna and Nepalese
Minister of Commerce and Supplies Rajendra Mahto were also
present on the occasion.

The new pacts will replace the existing arrangements
since 1991, extended from time to time.

The agreements were initialled on the last day of the
five-day visit of Nepalese Prime Minister Madhav Kumar Nepal.

The bilateral trade takes place generally in Indian
currency barring for a few items. Indian rupee is legal tender
in Nepal and is freely convertible.

The trade between the two countries was USD 1.8 billion
in 2008-09 (April-February). PTI