The Nepal-India Commerce Secretary-level Meeting, held during the weekend, concluded Saturday without reaching a concrete decision on revising the trade and transit treaties between the two countries, despite positive discussions.

During the two-day meeting, Nepal proposed amendments to the trade treaty, including a review of the duty-free facility for Indian agricultural products and the removal of quantitative restrictions on Nepali exports. However, India did not provide a definitive response, agreeing instead to hold another round of discussions soon, according to Baburam Adhikari, joint secretary at the Ministry of Industry, Commerce, and Supplies.

Nepal highlighted the economic strain caused by the duty-free entry of cheap Indian agricultural products into its market, which has undermined Nepali farmers' competitiveness.

Nepal has urged India to remove the long-standing quantitative restrictions imposed on four key export items under the trade treaty, which have been in place since 2002. These restrictions have limited the growth of Nepal’s exports to India and hindered its trade potential.

These limitations allow Nepal to export only a maximum of 100,000 tons of vegetable ghee, 10,000 tons of acrylic yarn, 10,000 tons of copper products, and 2,500 tons of zinc oxide annually.

Nepal has emphasized the need to lift these restrictions to promote bilateral trade, arguing that such measures disproportionately impact its economy while limiting opportunities for market diversification.

The Nepal-India Chamber of Commerce and Industry (NICCI) recently urged the government to eliminate the reciprocal duty-free facility for Indian agricultural imports, including rice, wheat, fruits, vegetables, timber, resins, and fish.

Nepal also sought amendments to the transit treaty to expand the range of goods that can be imported through the Biratnagar Integrated Check Post by rail. Currently, the treaty limits bulk cargo imports of chemical fertilizers, coal, clinker, and cement from third countries via Indian railways. Joint Secretary Adhikari stated that India appeared open to the proposal but emphasized the need for internal approvals from its relevant bodies.

The transit treaty provisions restricting the transport of goods exceeding a certain weight on the Phulbari-Banglabandha route were also raised. Nepal has requested the removal of these restrictions to facilitate smoother trade.

Nepal expressed concerns over India's Bureau of Indian Standards (BIS) delaying the issuance and renewal of quality certificates for goods like shoes, cement, plywood, galvanized sheets, and sanitary pads. These delays have hampered Nepal’s exports. India assured Nepal that it would work to expedite the BIS certification process.

India requested Nepal to lift its import ban on nine dairy products and honey. Nepal responded by stating it would consult with farmers and stakeholders before making a decision. An agreement was reached to facilitate the import of animal-based food products not produced in Nepal.

The two sides also agreed to streamline the import of equipment and materials for Indian-invested projects in Nepal.

The meeting concluded with an agreement to hold further discussions to address the unresolved issues. Additionally, Nepal committed to finalizing the letter of exchange required to implement certain provisions of the transit treaty soon.