The India-Nepal agreement signed last week in
Prachanda, even before he took over as the Prime Minister of
Developing Bilateral Trade
However, the recent visit by the new Prime Minister of Nepal would reestablish the relations between the two countries and play a significant role in the development of trade ties. The new trade agreement would replace the old similar agreement signed in 1991.
The fresh agreement can easily be termed a significant initiative that would further enhance trade relations between the two countries. On the last day of the five-day official visit of Nepalese Prime Minister Kumar, two other agreements were also signed. In the joint statement released after the conclusion of the visit,
Terrorism Issue
For some time past,
The old friendship treaty signed in 1950 has become somewhat disputed for the past some time. There are several sections that maintain an antitreaty viewpoint and oppose it. Kumar held discussion on this issue with his Indian counterpart Manmohan Singh. Both leaders have agreed, according to the joint statement, that the agreement would be reviewed at the secretary-level. As far as the new trade agreement is concerned, the two countries would keep a check on unauthorized trade, particularly by a third country. Undoubtedly, the agreement would go a long way in safeguarding the trade interests of both countries.
Cross border crimes are a matter of grave concern for both countries. The two countries maintain open borders, which is being used by antisocial elements to serve own interest. To prevent cross border crimes, the two countries have decided that home secretaries of the two countries would meet within two months to find out an effective instrument to stop such crimes and establish security on the borders. The decision to strengthen border administration and legal structure to resolve border disputes is a significant initiative.
Resolving Water Dispute
To resolve water disputes, the committee concerned has been directed to meet within two months. Both countries have also agreed to initiate effective measures to prevent breach of embankments of the river Kosi that plays havoc causing floods.
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