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Nepal, China hold third meeting of border trade and cooperation mechanism in Lhasa

Nepal and China held the third meeting of their Border Trade and Cooperation Mechanism in Lhasa, reaching agreements to boost trade, connectivity, and cross-border collaboration.
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By REPUBLICA

KATHMANDU, Jan 23: The third meeting of the China–Nepal Coordination Mechanism on Border Trade and Cooperation was successfully held in Lhasa of the Xizang Autonomous Region (XAR).



The meeting was co-chaired by Dr Ram Prasad Ghimire, secretary at Nepal’s Ministry of Industry, Commerce and Supplies, and Zhao Peng, vice chairman of the Xizang People’s Government. The two sides reached broad agreements on enhancing bilateral trade, improving connectivity, and strengthening cross-border cooperation.


Both sides agreed to move forward discussions on key frameworks, including the 1981 Trade and Payment Agreement, simplification of border passes, expediting construction of the Tokha–Chhahare Tunnel, setting quotas for fertilizer imports, extending China’s zero-tariff policy after Nepal’s graduation from Least Developed Country (LDC) status and improving vehicle rerouting mechanisms during disasters.


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To improve border operations, the two sides agreed to effectively implement the Nepal–China Border Transport Agreement to enhance bilateral trade by reducing time and trade costs. They also agreed to promote trade through a green channel for Nepali silage exports with risk-based inspections, alongside improved laboratory testing, data sharing, vehicle movement, and facilitation of jute exports. Both sides reaffirmed their commitment to border law enforcement for security.


A mutual understanding was reached on the proposal for the Kimanthangka road-bridge–Inland Clearance Depot (ICD), which will be pursued through diplomatic channels. Discussions also covered advancing the Jilong (Rasuwa) ICD, constructing a new Lizi (Mustang) ICD, expediting the Hilsa–Simikot Road, easing customs procedures at the Lizi port, and appreciating China’s support for the Rasuwagadhi–Syaphrubesi Road.


On investment and tourism, Nepal welcomed the idea of establishing a sister-city relationship between Jilong and a rural municipality of Rasuwa district and requested a formal proposal. Both sides agreed to task the Nepal–China Xizang Joint Tourism Coordination Committee (JTCC) with developing an action plan for a Jilong–Rasuwa Trans-border Tourism Zone. Nepal also proposed a joint high-level visit for the next phase of the Nepal–China Agricultural High-Tech Park.


In broader cooperation, the two sides agreed to implement the Authorized Economic Operator (AEO) certification system, resume the Kathmandu–Lhasa bus service, improve the quality and safety of goods through training, recognize each other’s medical qualifications, and strengthen cooperation in traditional medicine.


The meeting was held in a friendly and cooperative atmosphere and laid a solid foundation for future collaboration. Both sides agreed to hold the fourth meeting in Kathmandu on a mutually agreed date.


 

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