Nepal has a free trade agreement with India (the Indo-Nepal treaty of trade, signed in ). Nepal is a member of the South Asian Free Trade. Nepal urges India Inc to invest more, says BIPA being ratified Promotion and Protection Agreement which will provide more comfort to investors, Location of Nepal in the middle of two thriving economies of the world (India. देश. सम्झौताको शिर्षक, सम्झौता भएको मिति. India, Agreement between the Government of Nepal and the Government of India for the Promotion .

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The PM said he was much impressed by the consistency of messaging by all the Indian leaders, which showed their common concerns. The provisions ayreement seen as critical in protecting the interests of Indian investors and official sources in Delhi hoped inddia BIPPA would be implemented fully betweeen not remain a mere document.

The term investment includes every kind of asset, including intellectual property rights. The major determinants of FDI are macroeconomic, policy and political stability; large and growing market size; and being in proximity of emerging countries with large market size so that goods could be exported there.

Due to unstable trade regime and unstable political scenario, many Indian investors left Nepal creating a huge trade gap. International treaties and relations have their own courses and actions. Every treaty can be defined in various ways and there are always pros and cons in the bilateral treaties. The Indian side was open to discuss the Treaty of Peace and Friendship. It guarantees rights of foreign investors, and ensures them fair and equitable treatment, security, and dispute resolution mechanism.

The treaty regimes guide the patterns of relations between any two countries. The impact is higher in countries with weak domestic institutions because investors feel relatively more confident investing in the country following investment protection agreements.

Prosperity has been a recurrent theme in all his addresses here and he seems willing to go far to source investments for the cash-strapped Nepali economy. Though I came to New Delhi as prime minister, they saw me as a Maoist prime minister.


However, PM Bhattarai said that the meeting did not go futile. On this respect, latest studies show that investment protection agreements like BIPPA indeed have positive impact on FDI, especially when it flows to low income countries from relatively high income and high exporting countries.

PM asks India to support peace process Prime Minister Baburam Bhattarai has called on India for its goodwill and support for the completion of the peace and constitution-writing processes in Nepal. Login from existing account Facebook Google Email.

In case of nationalization or expropriation of investment, nondiscriminatory compensation is guaranteed. Abd investments to increase sizably, Nepal needs to address constraints such as lack of power supply, inadequate supply of infrastructureslabor disputesrising cost of raw materials, policy inconsistencies, and high interest on credit to key sectors.

BIPPA is not an exception.

InvestNepal – Resources – Treaties and Agreements

The Nepal-India BIPPA remains in force for ten years and will be automatically extended thereafter unless one of the countries intends to terminate it. Investors are allowed to freely transfer returns to investment. Among the deals, the most prominent is the LoC that will be used to finance infrastructure and hydropower projects in Nepal.

You are commenting using your WordPress. The agreement provides for an elaborate mechanism to resolve disputes between the investor and a host government, as well as between the two governments.

Do You Like This Story? October 22, Share on Facebook Share on Twitter. Post your views Cancel reply Enter your comment here In principle, it ensures reciprocal encouragement, promotion and protection of investments, thus enabling conditions conducive to increase investment by investors.

The Indian business community, the biggest foreign investor in Nepal, wanted assurance for the protection of its current and prospective investments. At a packed hall in the Constitutional Club, old-school socialists, including those who knew him from his JNU days, wanted to hear from the Maoist leader that he was not going to abandon the cause of the working class and the down-trodden.

Nepal – 2-Bilateral Investment Agreements & Taxation Treaties |

As a developing country, Nepal lags far behind in protection and enforcement of IPRs due to its low level of economic and social development. Provisions have been made in the BIPPA for grant of compensation to the investors who suffer losses because of war, armed conflict, a state of national emergency, etc.


If you are weak, your nationalism is hollow. We blog for peace and democracy in Nepal. Notify me bippaa new comments via email. Describing his discussions with Indian leaders betwee friendly and fruitful, PM expressed hope that this visit will help in better understanding and increased cooperation between the two countries. Get real-time alerts and all the news on your phone with the all-new India Today app. A loose coalition of individuals and organisations, which actively supported the Jana Andolan, was keen to see him voice his commitment to democracy and human rights.

No sane industrialist can invest money in another country without receiving an adequate assurance on the protection of their investment. So government of Nepal has to come agdeement a new policy to cope up with this issue. He also visited Rajghat. Fill in your details below or click an icon to log in: If we analyze the IP laws of different countries with those of Nepal, similarities are there as most of the countries are signatories to the International Convention and the TRIPS Bbetween, which establish minimum standards of IP protection.

Prime Minister Baburam in India: Agreements Signed and Some Photos Clicked

Importantly, the self-centered leaders opposing BIPPA should explain how exactly Nepal was dominated and workers rights eroded by signing such agreement with five countries before it was done India. It was published in RepublicaOctober 26,p.

Misinformed debate Most of the nepa over BIPPA is based on misinformation and inaccurate comprehension of the scope and depth of the agreement. Pages Home About Contact.