China, Nepal agree to build first strategic rail link

Nepal has signed an agreement with China to build a strategic railway link between the two countries through Tibet.
This agreement was signed during Nepal Prime Minister K.P. Sharma Oli’s official seven day visit to China.
Two countries have signed the transit trade treaty which will end Nepal’s dependency on Indian sea ports. Presently, India has virtual monopoly in trade with the Nepal which accounts for one third trade of the Himalayan landlocked country.
The agreements signed also include a feasibility study on the establishment of a Free Trade Agreement (FTA) between both countries. China will also provide assistance to build a border bridge over the Simikot-Hilsa road section that will connect Humla district of Nepal with Tibet.
The other agreements included on economic and technical cooperation to build a Regional International Airport Project at Pokhara which is the Nepal’s famous tourist site.
Both countries also discussed on various issues to boost bilateral cooperation including trade diversification, cross border connectivity and infrastructure development, cooperation on energy, tourism, finance, education and culture.

Month: Current Affairs - March, 2016