Nepal and China have signed a deal under which 4,721 products from Nepal will get zero tariff facility in the Chinese market. The deal has been signed to reduce the existing trade imbalance among these two countries. Under the deal, most of the major export products of Nepal will have zero tariff entrance in Chinese market.
China has been expanding tariff cuts to the products from the least developed countries (LDC) in the world. Nepal is not only a LDC but it is also a neighbor of China. Binod Chaudhary, president of Confederation of Nepalese Industries (CNI) has welcomed this deal between the two countries. He expected optimism that this deal with help to decrease the trade imbalance which is heavily in favor of the giant country.
Right now, bilateral trade between the two countries is around Rs 36 billion and Nepal only exports to China just around Rs 4 billion. Good news for Nepalese businessmen is that most of the major export products of the country such as carpet, readymade garment, textile products have been included in this deal.
This Himalayan country is sandwiched between India and China and traditionally the country had better relationship with India. In the last few years, decision makers in Beijing have been trying to improve relationship with Kathmandu.