Trade Agreement

Nepal's Trade & Transit Agreement

Moved by the desire to develop and strengthen their economic and commercial relations and with a view to promoting the trade between the two countries on basis of equality and mutual benefit, the two countries have agreed as follows: -

Article I

The High Contracting Parties shall take all appropriate measures to develop the trade between their two countries and agree to promote the exchange of goods and services between them.

Article II

The trade between the high Contracting Parties shall be conducted in accordance with their respective laws, regulations and procedures relating to import and export of goods and commodities.

Article III

The High Contracting Parties shall do their best to promote expand the volumes trade between the two countries in particular with regard goods and commodities mentioned in List "A" and "B" annexed hereto which form an integral part of this Agreement.

List "A" designates the List of exports from Nepal and List "B" designates the List of exports from the Arab Republic of Egypt.

The above mentioned lists shall not be construed as to preclude the exchange of goods and commodities not enumerated therein.

Article IV

The High Contracting parties shall grant each other the most favoured nation treatment in respect of issuance of licences, customs formalities, customs duties and taxes and other charges for the export of goods and commodities to be exchanged between the two countries.

These provisions, however, shall not apply to: -

1. Facilities to promote the frontier trade.
2. Advantages resulting from any Customs Union or other Agreement on Free Trade to which either High Contracting Party is or may become a member of a party.

Article V

Notwithstanding the foregoing provision, either High Contracting Party may maintain or introduce such restrictions are necessary for the purpose of: -

1. Protecting public morals,
2. Protecting human, animal and plant life
3. Safeguarding national treasures.
4. Safeguarding implementation of laws relating to the import and the export of gold and silver bullion.
5. Safeguarding such other interests as may be mutually agreed upon.

Article VI

All payments in connection with exportation and importation of goods and commodities as well as other payment shall be effected in U.S. dollars or any other freely convertible currency unless otherwise agreed upon between the High Contracting Parties.

Article VII

Notwithstanding the foregoing provisions, the two High Contracting Parties agree to enter into, without restricting other mutual trade, such special arrangement as to provide for the special settlement or payment procedure in respect of the goods and commodities to be exchanged or such other preferential arrangement as may be considered, by them as necessary from time to time during the period of validity of this agreement to facilitate the exchange and movement of goods and commodities from one country to the other.

Such special arrangement may be based on consideration to effect payments either in Nepalese Rupees or in Egyptian Pounds as and when such arrangements could be adopted by both High Contracting parties.

Article VIII

In order to promote the mutual trade both the High Contracting Parties shall provide to each other facilities for holding of fairs, exhibitions and displays at the Trade Center subject to their respective laws and regulations.

Article IX

The High Contracting Parties shall accord each other in respect of capital investment, joint ventures and other forms of economic co-operation aimed at promotion of trade between the two countries, treatment not-less favourable than that accorded to any third country.

Article X

The High Contracting Parties shall observe the convention on Transit Trade of Landlocked States signed in New York on July 8, 1965 as well as the relevant resolutions recommendation off UNCTAD on the same subject in so far as they facilitate the trade between the two countries.

Article XI

The High Contracting Parties agree to explore ways and means and take necessary steps for the most efficient and economical transportation of goods and commodities between the two countries.

Article XII

In order to facilitate the implementation of this agreement and to resolve the problems which may arise therefore both the High Contracting parties agree to consult with each other and form a Joint Committee which shall meet at the request of either High Contracting Party at the convenient date and venue.

Article XIII

This Agreement shall be valid for a period of five years and is subject to retification where needed. It shall however come into force provisionally from the date of its signature and finally from the date of receipt of instrument of ratification at Kathmandu. It shall be extended thereafter for additional period of five years each unless either High Contracting Party notifies the other of its intention to terminate this Agreement six months prior to the expiration of each period of five years.

Done and signed at Kathmandu on Tuesday Twenty Third Day of December Nineteen Hundred and Seventy Five in two original copies each in Nepali, Arabic and English Languages, all the three texts being equally authentic. In case of divergence, the English text shall prevail.