The Government of Nepal plans to propose measures to India aimed at addressing non-tariff barriers affecting the export of Nepali goods and amending the bilateral trade agreement. The proposals will be discussed during the Commerce Secretary-level Inter-Governmental Committee (IGC) meeting scheduled for January 10 and 11.

Nepali officials have emphasized prioritizing issues related to export challenges in the upcoming discussions. For several months, India has mandated Bureau of Indian Standards (BIS) certification for importing Nepali products such as footwear, cement, plywood, galvanized sheets, and sanitary pads. Delays in issuing or renewing these certifications have significantly disrupted Nepal's exports. Cement exports have declined sharply, and exports of footwear, including the well-known Goldstar brand, have also been affected.

Joint Secretary Baburam Adhikari of the Ministry of Industry, Commerce, and Supplies stated, “There is an agreement to recognize quality certifications issued by each country’s respective standards bodies. We will request India to accept the certifications issued by Nepal’s Department of Standards and Metrology, reducing the reliance on BIS certification.” For agricultural products, Nepal plans to request recognition of certifications from the Department of Food Technology and Quality Control.

Nepal also seeks a review of the bilateral trade agreement to address its growing trade deficit with India. The government aims to reconsider the duty-free access granted to Indian agricultural products. Due to heavy subsidies in India, these products are sold at low prices, making it difficult for Nepali agricultural products to compete.

To safeguard domestic producers, Nepal has restricted the import of nine types of dairy products since last year, citing challenges faced by Nepali dairy farmers. Similarly, in April, the government directed the suspension of honey imports until domestic stocks were cleared. India has raised concerns over these restrictions and is urging Nepal to lift them.

Nepal plans to request the removal of long-standing quantitative restrictions on the export of vegetable ghee, copper products, zinc oxide, and acrylic yarn to India. Under the current trade agreement, Nepal can only export limited quantities of these products annually: 100,000 tonnes of vegetable ghee, 10,000 tonnes of yarn, 10,000 tonnes of copper products, and 2,500 tonnes of zinc oxide.

Nepal is also seeking revisions to the transit agreement with India. At present, cargo exceeding a certain weight is restricted on the Phulbari-Banglabandha route. Nepal plans to request the removal of this restriction to facilitate smoother trade.

Additionally, the Integrated Check Post (ICP) in Biratnagar allows imports of only a limited range of goods through the railway, making it challenging to operate rail services efficiently. Nepal intends to propose that all types of cargo be permitted for import through railway from the Biratnagar ICP.