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11/04/2024 01:21:59 pm

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Nepal Signs Landmark Transit Treaty With China; The First Rail Link Connecting Both Nations

Nepal Signs Landmark Transit Treaty With China; The First Rail Link Connecting Both Nations

(Photo : Getty Images) Oli called on China to build the rail link to lessen Nepal's dependence on India.

China and Nepal inked ten cooperation agreements on Monday, including a historic strategic railway link between the two countries to reduce landlocked Nepal's total dependence on India's sea ports for third-country trade.

Nepal Prime Minister K.P. Oli, who is in Beijing for a seven-day visit, was warmly welcomed by Premier Li Keqiang at the Great Hall of the People last Sunday.

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Oli has earlier requested China for the rail link to avoid its total dependence on India.

Bilateral relations

Oli's high-profile visit comes on the heels of a recent six-month long crippling blockade when the Indians blocked Nepal's trade routes with India, disrupting normal life for the Nepalese.

The two prime ministers discussed the status of their bilateral relations and made a comprehensive review of their trade cooperation. Both nations have expressed satisfaction on their steadily growing relations.

"The two sides exchanged substantive views on further strengthening and consolidating mutual trust and understanding as well as promoting mutually beneficial cooperation in various fields," a statement from the Nepalese Foreign Ministry said.

Extension

Reports said Oli had requested China for an extension of the strategic railway link, with Tibet further to Nepal.

"Nepal Prime Minister wanted to explore two rail lines," said Hou Yanqi, deputy head of China's Foreign Ministry.

Hou said the Chinese government will tap Chinese firms and encourage them to look into the internal rail plan. She added that Beijing is already planning to stretch the railway link from Tibet to Gyirong on the Nepal border

Ten Agreements

"Of course, a further extension from Gyirong is an even long-term plan. It's up to geographic and technical conditions and financing ability. We believe that far in the future,, the two countries will be connected by rail," she said.

Among the ten agreements sealed by both countries include a feasibility study on the establishment of a Free Trade Agreement (FTA), assistance to build infrastructure in Nepal such as a new airport and a border bridge, and an economic treaty and technical cooperation on building an international airport on Nepal's famous tourist site Pokhara.

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