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In 2016, Nepal-India relations were at one of their all time lows because of India’s economic blockade. The then Minister for Foreign Affairs, Kamal Thapa, frequently traveled to India to convince the Indian side to lift the blockade which had severely affected life in Nepal.

In one of the meetings with his Indian counterpart, Sushma Swaraj, Thapa had proposed forming a panel on Nepal-India Eminent Persons’ Group (EPG), as agreed by the two countries in 2014, to seek experts’ suggestions to settle the long-standing issues between Nepal and India, including the revision of the 1960 Treaty of Peace and Friendship to reflect the present day realities.

Former foreign minister Thapa shared such information while speaking at a program organized by Tanka Prasad Acharya Memorial Foundation on Friday.

Initially, recalls Thapa, Swaraj was reluctant to form such a panel as the bilateral ties between the two countries were going through a rocky patch, but she agreed eventually. The Nepali side announced its EPG members, all of them picked by Thapa without consulting major political parties and stakeholders.

The names were endorsed by the Cabinet of Prime Minister KP Sharma Oli. Former Nepali ambassador to India, Nilambar Acharya, remembers Thapa calling him one evening and asking him to become an EPG member. Acharya asked Thapa for some time to think about the offer, but the latter insisted that the decision had to be made right then and there.

Though it was an expert panel, there were no experts representing the Nepali Congress, CPN (Maoist Center) and Madhes-based parties. Still, the non-represented parties had no issue with the formation of the EPG, as most of the members were non-political figures. The only politician in the EPG, Nepal, was Rajan Bhattarai of the CPN-UML. From India, it was Bhagat Singh Koshiyari of the Bharatiya Janata Party.

In 2018, the EPG prepared its report with its suggestions to the governments of Nepal and India. But Indian Prime Minister Narendra Modi refused to receive the report. This turndown essentially halted the progress of the EPG report.  During his India visit in May this year, Prime Minister Pushpa Kamal Dahal did not raise the EPG issue with Prime Minister Modi lest it should spoil the improving relationship between Nepal and India.

Former Prime Minister and UML leader Oli is probably the only leader who has been consistently and publicly speaking about the importance of the EPG report. Other political parties, mainly the NC and Maoist, seem to have no interest in the issue. 

In a public program on Saturday, Oli said that the Nepal-India relations should move ahead “as per the suggestions provided by the EPG report.” He said the report will serve as a prescription to push forward the ties between the two countries.

It has been more than five years since the EPG report was prepared, and the chances of it moving ahead are slim. Already, discussions have begun on what to do with the report.  Thapa, the former foreign minister, has suggested that members submit the report to Nepali side and close the chapter on the whole issue. As the report has already submitted its report to the Ministry of Foreign Affairs, Nepal, it can be argued that the EPG has no legal existence.  

There are some people who are demanding that the report must be made public at least, if the two governments are not ready to receive it. EPG Nepal coordinator Thapa says he holds the key to the cupboard where the report has been stored and he has been trying to hand it over to the Ministry of Foreign Affairs.

He adds being the keeper of the report has become a huge burden for him.There are multiple reasons behind the sorry state of the EPG report. First one, obviously, is the composition of the EPG without representations from major political parties.

 But there are those who argue that since the EPG was a panel of experts, there was no need for a party-wise representation. The only thing lacking, they say, is the consensus of parties and involvement of major political actors. The NC, Maoists and Madhes-based parties are not willing to take ownership of the EPG report.

It should also be noted that the Indian side was never in favor of forming a panel for the purpose of, among other things, suggesting revision to the 1950 Peace and Friendship Treaty. Several issues that the EPG was dealing with were heavily politicized.

Experts reiterate that there should be a national consensus for the EPG report to move ahead.

Though the report is yet to be made public, the Indian side has expressed dissatisfaction over some provisions that were leaked through the media.

The document has recommended establishing smart borders in order to limit the seamless cross-border movement. In 2018, The Wire reported:  “EPG has suggested that a technology-driven structure should be put in place for monitoring the movement along the international boundary, with identity cards as the mode of registration.”

Another point that the Nepal side has proposed is ensuring full independence to purchase arms and ammunition from third countries. To this end, Nepal is intending to change the Article 5 of Treaty which says: “The Government of Nepal shall be free to import from or through the territory of India, arms, ammunition or war-like materials and equipment necessary for the security of Nepal.”

This provision provides full right to Nepal to import arms but protocol to the Nepal-India Treaty of Transit states that “arms, ammunition and hazardous cargo shall not be allowed to be transported by road.” Similarly, Nepal-India Railway Agreement is not sufficient to allow the transit of arms and ammunition from India, experts say.

Similarly, the letter of exchange to this treaty bars Nepal’s independent right to import arms and ammunition from India. The paragraph-2 of Letter of Exchange says: “Any arms, ammunition or war-like material and equipment necessary for the security of Nepal that the Government of Nepal may import through the territory of India shall be so imported with the assistance and agreement of the government of India.

 The government of India will take steps for the smooth and expeditious transport of such arms and ammunition through India.” Nepal prefers to scrap both Article 5 and Letter of Exchange with a view that it is fully independent to import arms and other equipment as per its need.

 The 2007 India-Bhutan Friendship Treaty had also changed a similar clause in the 1949 version. The new treaty says that Bhutan can import arms as long as Indian interests are not harmed and there is no re-export of the weapons, either by the government or individuals.

Article 6 and 7 in the current treaty encompass the issue of “national treatment” and equal privileges for citizens on each other’s soil. While the spirit has been preserved to an extent, the EPG members have apparently backed Nepal’s position that the Himalayan republic should be able to institute more protection for its own citizens due to the asymmetry in size and economy between the two neighbors.

Nepal is of the view that such provisions are disadvantageous to a small country like Nepal, and given its population, economy and size, it cannot offer equal treatment to Indian citizens in Nepal.  Another bone of contention between the two countries is Article 2 of the treaty that states: “The two governments hereby undertake to inform each other of any serious frictions or misunderstanding with any neighboring state likely to cause any breach in the friendly relations subsisting between the two governments.” 

 Nepal is of the view that as this provision is not implemented, it is better to scrap. There has been war between India and Pakistan and India and China since the signing of the treaty, but India has not informed Nepal of the tensions.  Similarly, there has not been any military alliances between the two countries. 

Academicians and policy-makers in New Delhi say that India sought Nepal’s favor when there was Doklam crisis in 2017, and Nepal may be asked to take side by India if there is escalating tensions between two countries in coming days. Since the 1962 China-India war, Nepal has maintained a neutral position vis-à-vis India-China conflict and war.

 Along with these key provisions, Nepal has proposed to make changes in several other provisions of bilateral treaties and agreements in trade, transit and other areas, but Nepal’s major concern is the 1950 treaty. 

The main purpose behind the formation of EPG was to suggest ways on how to amend the treaty. There are also views on whether it was prudent to form a panel like the EPG to deal with sensitive issues between two countries.

 Some experts say the two countries should have instead formed government-level mechanisms to work out the outstanding issues, which they can still do with national political consensus. 

The Millennium Challenge Corporation (MCC) is a US organization that specializes in providing development assistance to underdeveloped nations. The MCC Compact, which Nepal signed in 2017, was anticipated to serve as a catalyst for the nation's infrastructure and economic development. The implementation of the agreement, however, has faced challenges due to political unrest, controversies, and geopolitical tensions.

The $500m MCC Compact between Nepal and the United States has selected two major projects: a road maintenance project and an electricity transmission project. While the electricity project seeks to address the problem of power outages and inefficiency by enhancing Nepal’s power transmission infrastructure, the road project aims to increase road upkeep, advance transportation efficiency, and lower transportation costs, consequently boosting economic activity.

While the agreement has the potential to benefit Nepal significantly, it has also drawn criticism over concerns of sovereignty and potential entanglement in regional geopolitics.

This article analyzes the positive and negative aspects of the MCC agreement’s impact on Nepal and emphasizes the need for addressing challenges to harness its potential for the country’s development while preserving its sovereignty and regional relationships.

Despite its potential benefits, the implementation of the MCC agreement has faced several complex and multifaceted challenges, manifesting in various forms, including political unrest, controversies surrounding issues of sovereignty, and geopolitical tensions. One of the major points of contention arose when some stakeholders associated the project with the Indo-Pacific Strategy (IPS), a geopolitical initiative aimed at countering China's influence, raising concerns that it could potentially undermine Nepal’s sovereignty.

Critics voiced apprehensions about the deal's potential alignment with American interests and policies, fearing that it might bind Nepal to external agendas. Geopolitical anxieties were further exacerbated by Nepal’s strategically advantageous location situated between two influential neighbors, India and China, sparking concerns about how accepting aid from the US under the MCC could impact the country’s regional relations.

The agreement, caught in the midst of these intricate challenges, has not been immune to criticism concerning the perceived erosion of Nepal’s sovereignty and the potential entanglement in regional conflicts. This uncertainty surrounding the deal's implications and potential consequences contributed to delays in the ratification process through Parliament.

Consequently, the local communities directly affected by the proposed projects have voiced concerns about potential evictions, apprehensions about environmental ramifications, and anxieties related to the right compensation for land acquisition. 

These uncertainties surrounding the MCC Compact have had a tangible and adverse impact on Nepal’s development trajectory, impeding the timely flow of critical infrastructure funding and exacerbating existing challenges with power transmission and road maintenance that hinder industrial expansion and economic growth. Therefore, it is necessary to address these challenges with a comprehensive approach to ensure the realization of the agreement’s potential benefits while safeguarding Nepal’s sovereignty and fostering harmonious regional relationships.

To harness the benefits of the MCC agreement, it is crucial for the Nepali government and stakeholders to address the controversies and ensure openness in negotiations. Diplomacy should be used to alleviate geopolitical tensions and reassure Nepal’s neighbors about the country’s intentions. Seen as a game-changer for Nepal, the MCC agreement presents both opportunities and challenges for Nepal’s development. 

While it holds the potential to improve infrastructure and foster economic growth, it must be implemented with care to address concerns about sovereignty and regional relations.  The Government of Nepal should strive for transparency and engage in diplomatic efforts to overcome the hurdles and ensure successful project implementation. By doing so, Nepal can reap the benefits of the MCC Compact while preserving its sovereignty and regional links.

Gold smuggling has heavily impacted Nepal’s legal gold trade. Traders pay around Rs 1.25m customs duty while importing a kilogram of gold. Smuggled gold hitting the market means legal traders like us can’t compete with illegal ones as smuggled gold comes cheap and entails a huge profit margin. It not only kills healthy competition but also hits the revenues.

During festive and marriage seasons, Nepal’s daily gold demand surges to 30-35 kg against the import of 10 kg. Not filling this demand-supply gap is akin to letting smugglers have a free rein.

The government should ensure the availability of gold as per the demand in the domestic market. 

While traders stay in serpentine queues for hours to get a gram of gold, smugglers readily supply gold in required quantities. As the government is silent on this matter, we have no option but to leave Nepal seeking a better future.

The author is president of  Federation of Nepal Gold and Silver Dealers’ Association

In July 2018, Nepal gifted two pairs of endangered greater one-horned baby rhinos to China as part of rhino diplomacy. The first pair was Bhadra (male) and Rupasi (female), who boarded a chartered flight to the Chinese city Guangzhou as symbolic ambassadors of Sino-Nepal friendship.

Right before their flight, I had followed all the preparatory activities and rhinos’ road journey in a truck from Chitwan National Park to Kathmandu. After exactly five years, this June, when I traveled to Guangzhou, I couldn’t stop myself from saying hello to the exquisite and rare pair living in a special zone of Chimelong Safari Park.

As Harisharan Pudasaini, Consul General at Nepali Consulate Office in Guangzhou, said, the baby rhinos have not just found a new home in Guangzhou, but also have helped strengthen the friendship between the two countries. “Nepali rhinos are in good hands, growing in a safe and healthy environment. Every time I visit the park, I feel like they are happy and smiling for being able to see us; their Nepali connections. It’s a special feeling.” Are they really happy? How is their new home in China? I tried to find answers through Zhang Xueli, general manager of Chimelong Safari Park.

Excerpts from the interview:

What is the current status of baby rhinos brought from Nepal?

On 12 July 2018, the young Bhadra and Rupasi boarded a chartered flight from Nepal's capital Kathmandu to Guangzhou to start their new life in Chimelong, China. Bhadra and Rupasi are in good condition and have grown up healthy. Bhadra, the male Greater One-horned Rhino, has grown from 670 kg to 1,830 kg, with a total weight gain of 1,160 kg, while the female Rupasi, has grown from 865 kg to 1,474 kg, with a total weight gain of 609 kg.  

Have they adapted to the new environment? How is their nature, food habits and daily activities?

Yes, they are now adapted to their living environment in Chimelong. They are docile and enjoy basking in the sun on the ground. They are large and cute animals. In order to ensure that Nepal’s national treasure is better adapted to the Chinese environment, Chimelong Group has specially set up a special farm for Asian rhinos, planting a large number of high-quality elephant grass for Greater One-horned Rhinos to eat a large amount of food, while adding other grass, leaves, some amount of vegetables and fruits, concentrate and other foods to make it nutritiously balanced. RUPASI especially likes carrots. At the same time, in order to solve the imbalance of dietary fat, soluble and insoluble carbohydrates, minerals and vitamins, Chimelong has developed a special diet for them, adding salt bricks during the feeding process. We believe that the inorganic salts in salt bricks can promote the bone growth of Greater One-horned Rhinos. In addition, Chimelong deliberately expanded the logistics conservation area, which consists of the hay area and the soil area, so that they can express their daily behaviors freely- roll mud bath and grind.

Do you plan to continue keeping them in a special protected area or relocate in the public section of the park?

At present, the two rhinos from Nepal are nearing adulthood. Because the species is so valuable, breeding and enlarging the population is a priority compared to the park display. Chimelong is currently concentrating its efforts to carry out scientific research and strive for early reproduction. Meanwhile, Chimelong has put the exhibition on the agenda and will show them to the public at the right time.

Any specific future plans regarding the increase in their population?

Chimelong has built a herbivorous research center, and continues to carry out scientific research on rhino protection and breeding, constantly breaking through the artificial conservation technology of rhinos, and successfully achieving the breeding of black and white rhinos. At present, Chimelong animal conservation and scientific research team is working on the conservation technology of Greater One-horned Rhino, cooperating with the European Association of Zoos and Aquariums (EAZA) and  participating in EAZA breeding program, and striving to achieve successfully breeding at an early date. In addition, we hope that the Nepali authorities will re-approve the export of Greater One-horned Rhino to Chimelong and establish a sustainable artificial population in Chimelong. In the future, Greater One-horned Rhinos individuals born in Chimelong will be returned to Nepal, making contributions to Nepal’s wild population protection and public education, as well as the world's rhino conservation.

Since they are in a special protected area, do the Chinese public have any impression about these Nepali rhinos?

More than 100 years ago, the Greater One-horned Rhino was distributed in the wild in China. There are records of rhinos on oracle bone inscriptions dating back more than 3,000 years, referring to the Greater One-horned Rhino. Even now, the Greater One-horned Rhino has a high profile among the Chinese public and is an important flagship species that China needs to restore its wild population in the future. Bhadra and Rupasi carry the deep friendship and trust of the Nepalese people to the Chinese people. As the symbol and messenger of China-Nepal friendship, they have been carefully cared for and managed by the Chimelong conservation team. They are growing healthily and vigorously in their new home in Guangzhou.

What is the significance of these rhinos in China? How will the Sino-China friendship be promoted through this precious gift? 

The Greater One-horned Rhino carries the memory of the Chinese people for thousands years, and has a high status in the minds of the Chinese people. Greater One-horned Rhino is extinct in the wild in China. We hope that with the gradual recovery of wild habitats in China, we can reintroduce Greater One-horned Rhinos to the wild in China in the near future through our efforts. Nepal is known in China for its famous snow-capped mountains, and the Chinese public doesn't know much about Nepal’s Greater One-horned Rhinos. Through the publicity of the Greater One-horned Rhinos of Nepal, people can learn about the diversified wildlife and natural environment of Nepal, more and more people will be attracted to travel to Nepal, friendly exchanges between the people of China and Nepal will be promoted, and the friendship between two countries will be enhanced. May the friendship between people of China and Nepal last forever.

Gold is smuggled in Nepal to fulfill the demands for the yellow metal within the country and in India. Reports suggest India has an annual gap of 400 tons in demand and supply of gold. Whereas Nepal needs 40 kg of gold daily, it gets just 20 kg. Smuggling fills these gaps.

India is the largest private gold holding country. 

We may step up border security, but then smugglers change their modus operandi and use new routes for smuggling. We must be able to catch smugglers within the country and punish all guilty parties. 

Governments in the past used to help with gold smuggling through airport handling companies and mechanisms. It’s obvious that smugglers enjoy political protection nowadays as well.

Nepal Police must be allowed to investigate such cases because it constantly monitors new channels of smuggling and the Department of Revenue Investigation lacks the capacity to probe the cases.   

The author is former DIG of Nepal Police

The Nepal Agricultural Research Council (NARC) and Sichuan Academy of Agricultural Sciences (SAAS) have signed a Memorandum of Understanding (MoU) on Thursday on technology development and exchange of skills in the field of agriculture. 

Executive Director of NARC Dr Dhurba Raj Bhattarai and Vice Chairman of SAAS Dr Leo Younghang signed the MoU on technology transfer and skills exchange.

It is said that the two institutions would cooperate on technology transfer and promotion developed for the farmers and agriculture sector.

Sharing the information about the MoU, NARC Executive Director Dr Bhattarai said that agreement has been made to collaborate on increasing quality productions as well as agriculture development.

Likewise, SAAS Vice-Chairman has pledged to provide training to Nepali researchers and technicians on high-quality agricultural technology. 

Such training would be given to Nepali researchers on maize and sweet yam production in the near future.

A team of SAAS Vice-Chairman is currently on a three-day Nepal visit.

Kathmandu: US Assistant Secretary of State Donald Lu has returned from Kathmandu after understanding the progress made in implementing the Millennium Challenge Corporation (MCC) project in Nepal. The MCC is scheduled to be implemented starting from August next year. 

During his one-day visit on Friday, Lu met with various Nepali officials, including Prime Minister Pushpa Kamal Dahal, Foreign Minister NP Saud, Nepali Congress President Sher Bahadur Deuba, and CPN-UML Chair KP Sharma Oli. Lu expressed interest in Nepal’s level of readiness for the MCC implementation. 

Upon his arrival in Nepal, Lu’s initial meeting was with Deuba, who was the Prime Minister when the MCC was approved by Parliament. According to the Deuba Secretariat, Lu inquired about Nepal’s preparation for the implementation of the MCC. In response, Deuba reassured that there would be no obstacles in implementing the matter that had already been passed by the House. 

After meeting Deuba, Lu also held discussions with Foreign Minister Saud. A senior official from the Ministry of Foreign Affairs mentioned that Minister Saud assured Lu that Nepal is fully prepared and there would be no issues with the MCC implementation. 

Quoting Lu’s statement, a source from Baluwatar said that Lu appreciated Nepal’s preparations and assured that the MCC is in Nepal’s best interest. In response, the Prime Minister stated, “Nepal is ready to implement the MCC.”

The judiciary is tasked with defending the rule of law and guaranteeing justice for all, making it a crucial cornerstone of any democracy. The Nepali court, however, has long faced difficulties that limit its efficiency and undermine public confidence. In this essay, the situation of the Nepali court is examined, with a particular emphasis on the problems of incompetence and corruption plaguing it.

The Nepali court has struggled with inefficiency, which has resulted in a backlog of cases and delayed justice. This issue is exacerbated by a shortage of judges, poor infrastructure, and out-of-date legal procedures. A tremendous burden for the current judges has been caused by the relative lack of judges in comparison to the population, which has caused significant delays in the settlement of cases. In addition to undermining public trust in the legal system, this violates their fundamental right to prompt justice.

The basic underpinnings of the legal system are being undermined by corruption, which is a disease. In Nepal, corruption has crept up into the ranks of the court, undermining public confidence and skewing the administration of justice. The integrity of the court has been seriously undermined by the prevalence of bribery, nepotism, and political interference in judicial nominations and case results. Honest persons are deterred from pursuing legal recourse when they believe that the judicial system is corrupt, which feeds the injustice cycle.

The judiciary's independence and impartiality are further weakened by political meddling. Judges are now frequently appointed on the basis of political affinities rather than merit, which damages the judiciary's authority. Political demands and interference in high-profile cases frequently result in biased decisions, undermining the judiciary's position as the last arbiter of justice.

A lack of accountability mechanisms within the judiciary allows misconduct and malpractices to go unchecked. The absence of effective mechanisms to investigate and prosecute corrupt judges enables impunity and perpetuates a culture of wrongdoings. The absence of transparent systems for evaluating judicial performance and disciplinary action further exacerbates the problem.

The Nepali court needs urgent changes if it is to escape the shackles of inefficiency and corruption. First and foremost, more judges are required in order to lighten the load on the current ones and speed up case resolution. Efficiency can also be increased by updating the infrastructure, using technology, and simplifying the legal process. Mechanisms for accountability and transparency must be improved in order to guarantee that judges are held accountable for their acts. In addition, rigorous safeguards must be put in place to deter political meddling and guarantee the independence of the court.

The Nepali judiciary is in a precarious position and has a bad image due to corruption and incompetence. Restoring public confidence, upholding the rule of law, and delivering prompt justice to citizens all depend on overcoming these obstacles. Nepal can free itself from the shackles that constrain its judiciary and pave the path for a more just and equitable society by effecting comprehensive reforms, improving openness, and fostering accountability.