Floods choke Nepal’s trade with China, raising dependence on India
Summary
Floods have severely damaged Rasuwagadhi, Nepal’s main trade point with China, disrupting customs clearance and stranding cargo and people. Analysts say the shutdown could deepen Nepal’s dependence on India as alternative routes remain limited.
Key Points
- Floods on August 26 damaged Rasuwagadhi customs point and 45 kilometres of the road linking Kathmandu with the Chinese border.
- Customs clearance has been suspended, disrupting imports of Chinese electric vehicles, electronics, garments and other goods.
- The floods reportedly swept away about 200 containers and left 76 businesspeople and their employees missing, with losses estimated at around Rs 1 billion.
- Analysts say repeated disruption of northern trade routes could make Nepal even more dependent on India.
