Weather Trade treaty update
FROM
ISSUE #71 (07 DEC 2001 - 13 DEC 2001)
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India has decided to keep the trade treaty that was to have expired on 5 December intact for another three months, up to 5 March. Both sides now have some more time to decide?or put off taking a decision?on how to resolve the sticky matters, especially the formula on calculating value addition, and the issue of the sudden ?surge? in certain Nepali exports. The Indian Embassy in Kathmandu said India agreed to extend the treaty taking into account the ?difficult situation? in Nepal, following the outbreak of Maoist violence and the military operations against the rebels. The two countries have met four times since August to negotiate changes to the treaty, but have failed to come to a mutually acceptable understanding.
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