By Shanker Man Singh
Prime Minister KP Sharma Oli is on a visit to China. He attended the Shanghai Cooperation Organization (SCO) Summit held on August 31 and September 1. Nepal has joined the SCO as a dialogue partner after signing a Memorandum of Understanding with the SCO Secretariat on March 22, 2016.
The Memorandum of Understanding defines the scope of Nepal's engagement with the SCO in the areas of trade, transit and investment, energy, agriculture, small and medium enterprises, security issues, legal and customs affairs, transport and communications, science and technology, education, health, culture and tourism, and disaster management.
The summit inaugurated by Chinese President Xi Jinping, was attended by Russian President Vladimir Putin, Indian Prime Minister Narendra Modi and other heads of government and heads of state of other countries around the world. The SCO was established in association with China, India, Kazakhstan, Kyrgyzstan, Pakistan, Russia, Tajikistan, Uzbekistan, and Iran in 2023. Turkey was pre-approved for membership.
The SCO, formed in 1996, is not new. In 1996, the SCO consisted of China, Kazakhstan, Kyrgyzstan, Russia, and Tajikistan. They agreed on two main things: to withdraw their troops from their shared borders; and to develop the free movement of people, products, goods, and capital across those borders.
In 2001, they enthusiastically formalized their success - and expanded it. Uzbekistan joined. In 2001, the successful mutual non-aggression pact became mutual defense against terrorism, and they created their own regional counterterrorism structure.
Four out of ten of the world's nearly eight billion people call the SCO region home. Nearly forty percent of the global workforce.
The success of the SCO is seen as paving the way for many other cooperatives to recover the global majority from the devastation of Western colonial destruction. In 2006, SCO members China and Russia – along with India and Brazil (joined by South Africa in 2010) – organized the BRICS. By 2022, BRICS had surpassed the G7 in terms of annual purchasing power.
It also exerted a global socio-political influence. Nepal, as a dialogue partner, is working towards improving the living standards of its people and increasing economic and cultural ties with member countries. However, Nepal faces challenges in gaining observer status within the bloc, as countries such as Afghanistan rank higher in the observer hierarchy within the bloc.
Geographically, BRICS is externally focused on the global world, while SCO is internally focused on Eurasia.
During his participation in the conference, Prime Minister Oli met with the Chinese President and his Indian counterpart, among other leaders.
This is the first time that Nepal is participating in a high-level conference. The conference is expected to discuss issues of politics, economy and security.
The Shanghai Cooperation Organization established on June 15, 2001, aims to strengthen mutual trust and good neighborly relations and promote effective cooperation in the fields of politics, trade and economy, science and technology, energy, counter-terrorism and other areas.
Nepal, India, and China are expected to discuss historical relations, continued cooperation, and border security. During the previous tenure of PM Oli, a new political and administrative map of Nepal was issued by amending the constitution with the consent of all parties, including the Nepali lands of Limpiyadhura, Lipulekh, and Kalapani.
PM Oli, during his talks with Chinese President Xi Jinping on Saturday, strongly informed Limpiyadhura, Lipulekh, and Kalapani being "integral parts of Nepal."
Nepal's Ministry of Foreign Affairs has clarified that this claim is based on historical treaties, facts, maps, and evidence. The main root of the dispute is the source of the Kali River. According to Nepal's claim, the main source of the Kali River is Limpiyadhura, while India considers Kalapani to be the source of the Kali River. In the Sugauli Treaty of 1816, the Mahakali River was defined as the western border of Nepal, the eastern areas of which are part of Nepal.
Recently, Nepal has reacted strongly after India and China agreed to resume trade activities through the Lipulekh pass. Nepal's Ministry of Foreign Affairs has objected to the "agreement of two neighbors, India and China, to conduct trade activities through the Lipulekh pass, which connects Nepali territory without Nepal's knowledge."
It has been announced that PM Oli will pay an official visit to India on September 17, the birthday of the Prime Minister of neighboring India, Narendra Modi. After visiting the US, Europe and China, Modi has invited Oli to visit India.
Nepal needs to agree with India for the commercial operation of Bhairahawa and Pokhara international airports, and it seems that this issue must be resolved in a logical manner. If India can be convinced to use the Lucknow route for flights from Western countries at Gautam Buddha Airport in Bhairahawa, the flight will be shortened by 20 minutes. Even the ticket price per passenger can be 10,000 rupees cheaper.
If arrangements can be made to easily deliver software produced by Nepali manufacturers to the Indian market, the example of bilateral cooperation would be further enhanced. The Joint Working Group on Border Management meeting held in New Delhi, India, last year agreed to further discuss and resolve the disputes related to development in some border areas, and it is necessary to implement it.
Tolerance and perseverance are necessary for all three countries. Due to the geographical proximity and close cultural and economic ties between Nepal and India, India attaches great importance to close and friendly relations. In addition, we also have friendly relations with China. Nepal is going through a very important time in its history. The current political developments will have far-reaching consequences. Nepalis are confident that peace, stability and economic development will be achieved by adopting the constitution and the subsequent economic code of conduct in the coming days.
Apart from ethnic, cultural and religious relations, both countries have similar views on many significant international issues. The United Nations, SAARC, BIMSTEC, and BBIN have added some more areas for the two countries to work together to achieve the goal of collective self-reliance within this region.
Nepal, India and China are all members of major international organizations and share common views and concerns on most international issues.
The three visits of former Indian Presidents and Indian Prime Ministers to Nepal a few years ago should be seen as a sign of goodwill and good economic cooperation.
Nepal and India have been cooperating in the national development of both countries in a wide range of areas, including proper use of water resources, trade and transit arrangements, health, infrastructure, education, training, etc. This partnership has contributed to the welfare of the people of both countries and has taken the relationship to a higher level, and the changes in the governments of both countries have not changed the depth of friendship that both cherish. Maintaining the dynamics of friendship and mutual trust, new areas of cooperation are constantly being added. In the past few years, the Government of Nepal has passed the Industrial Business Act, the Labor Act, and the SEZ Authority Act, the FITT, the Intellectual Property Act, the Public Private Partnership and the Investment Act.
Similarly, the Government of Nepal has also implemented a new trade policy and a Nepal Trade Investment Strategy. Nepal is confident that these new policies, laws including trade agreements will help attract more Indian investment in various sectors such as infrastructure development, hydropower, tourism, ICT, etc., and Nepal has sought cooperation from governments including India and China.
Nepal-India relations also seem to be moving forward despite any difficult circumstances. The Joint Commission meeting has been reviewing the progress made in the relationship with a focus on economic partnership, trade and transit connectivity, energy and water resources. Nepal needs to make extensive use of the economic and trade opportunities available in India, but has not been able to do so due to problems such as weak productive capacity, inadequate infrastructure, low foreign direct investment, lack of effective institutional mechanisms to address the emerging problems. Complicated laws and regulations, lack of coordination between trade and transport agencies, inconsistent reporting of trade data, and inefficient trade facilitation infrastructure have been seen as major obstacles. India’s trade has grown significantly in the last one or two years.
Nepal should also benefit equally. But how? Modalities should be discussed. Capacity-building programs should be conducted for trade-related stakeholders. Infrastructures like ICD, ICP should be managed by the Nepali private sector.
Transportation should be included in the trade and transit treaty. Nepal should make optimum use of the Visakhapatnam port and request Dharma port for transit transport in the future.
It was also necessary to form a committee comprising the Nepali private sector business community and the Indian business community to make recommendations to the government on policy, trade, transit and daily operations, and this has already been formed.
In the past, both governments used to take the recommendations of such forums well
The Nepal government has said it is committed to "resolving the border issue through diplomatic means based on historical treaties, facts, maps and evidence." India has also said it is open to a solution through dialogue and diplomacy.
