Nepal is understood to have sought more time to respond to New Delhi's proposal for including value addition norms in the Indo-Nepal trade treaty which expires in three weeks.
This has led to speculation that the bilateral trade treaty is heading for stalemate as the fourth official level talks held over the week-end in the capital ended inconclusively. Official sources said India has conveyed its willingness to hold the next round of talks as and when Nepal is ready with its response.
Nepal had submitted its own formulations at the official level meeting at Kathmandu in November first week, but the same was rejected by India as it failed to meet India's requirements.
India, meanwhile, suggested to Nepal to consider its proposal. However, Nepal failed to respond to it at the meeting last week and sought one week's time to respond. If both sides are unable to reach an agreement before the deadline of December 5, 2001, the bilateral treaty will lapse as India has already served a renewal/termination notice to Nepal on August 14 this year.
India served a notice to review the treaty following a surge in imports of various items from Nepal including acrylic yarn, vanaspati and zinc oxide.
Bureau Report