Decade later, Nepal–China transport deal still stuck on paper

Summary

A decade after Nepal signed a transport agreement with China to access seaports and reduce dependency on India, the deal remains unimplemented due to lack of infrastructure and political will.

Key Points
  • Nepal signed a transport agreement with China in 2016 to gain access to seaports for trade with third countries.
  • The agreement has not been implemented despite political visits and remains limited to paper.
  • Nepal's trade with several East Asian countries is routed through India’s Kolkata port, increasing dependency.
  • Lack of clear protocols, infrastructure upgrades, and government initiative hinder operationalization of the agreement.
  • Only two of the six agreed border points between Nepal and China are intermittently operational, limiting direct trade routes.
Article image