Nepal-US engagement in New York

The 79th United Nations General Assembly provided an opportunity for Nepal and the United States to discuss bilateral, regional and international issues. On the sidelines of the meeting, Prime Minister KP Sharma Oli and Foreign Minister Arzu Rana Deuba engaged in talks with senior US officials.

During a ceremony at the State Department, Nepal and the US agreed to establish a bilateral consultation mechanism. Foreign Minister Deuba and US Acting Under Secretary for Political Affairs, John Bass, signed the agreement, with senior officials from both sides in attendance. Nepal has similar mechanisms in place with several other countries.

After the meeting, Foreign Minister Deuba said, “A historic milestone in Nepal-US relations has been achieved with the signing of the Bilateral Consultation Mechanism (BCM) Memorandum of Understanding (MoU).” She added the agreement would promote deeper cooperation in areas such as trade, investment, tourism and infrastructure, thereby laying a stronger foundation for mutually beneficial cooperation between the two countries.

Prime Minister Oli and Foreign Minister Rana also met with Alice P Albright, CEO of the Millennium Challenge Corporation (MCC), to discuss the progress of MCC projects in Nepal. The US has encouraged Nepal to foster a favorable environment for smooth implementation of the MCC. Thirteen months have passed since the MCC came into effect, and its projects are supposed to be completed within four years. Recent progress at the local level has been positive, which is a good thing. Senior MCC officials have been consistently engaging with Nepal’s top leaders to ensure there are no obstacles to the project's implementation.

Additionally, Foreign Minister Deuba met with Uzra Zeya, US Undersecretary of State for Civil Security, Democracy and Human Rights, to discuss Nepal’s transitional justice issues, human rights and democracy. Zeya, who visited Nepal in 2022, has long advocated for the human rights of Tibetan refugees in Nepal. The US has requested that Nepal resume the process of issuing identity cards to these refugees.

USAID Administrator Samantha Power also met with Prime Minister Oli to discuss the enduring partnership between USAID and Nepal. Power welcomed Nepal’s recent passage of transitional justice legislation and its participation as a founding member of the “Partnership for a Lead-Free Future.” The two sides also discussed ongoing support for Nepal’s development efforts, focusing on health, agriculture, economic growth, and improving public service delivery.

Deputy Secretary of State for Management and Resources, Richard Verma, visited Nepal, where he met with Prime Minister Oli and other senior leaders. Verma expressed the US intention to provide $100m in Foreign Military Financing to enhance Nepal’s rotary wing capabilities, pending Congressional approval and the availability of funds. The discussions also included continued cooperation on sustainable economic development, particularly through the MCC, which aims to increase access to clean energy, as well as a USAID-funded project to promote Nepal’s tea industry through the Nepal Tea Collective.