August 16: Nepal’s overall foreign trade declined during last fiscal year due to the impact of Covid-19 pandemic. Nepal’s bilateral trade with China was not an exception. Both import and export to China declined in the review period.

Nepal’s bilateral trade with China was affected much before the government imposed lockdown on March 24. The border between the two countries was closed in late January after the deadly disease surfaced in Wuhan city of China.

According to the data maintained by the Trade and Export Promotion Centre (TPEC), Nepal’s export to China in fiscal year 2019/20 declined by 54 percent compared to the previous year. Nepal exported goods worth Rs 1.11 billion to China during the review period against the export of goods worth Rs 2.11 billion in the preceding year (FY 2018/19).

Nepal’s export to China had been declining although the two countries had signed a transshipment agreement three years ago. However, the major reason for the decline last year has been attributed to the closure of border to contain the spread of coronavirus. Nepal’s trade with China is almost nil in the last six months.

Nepal’s two main transit points in the northern border – Rasuwagadhi and Tatopani – has remained closed after coronavirus started spreading in China. Although the two customs points reopened after five months, the situation is yet to normalize.

Landslides have caused additional problem in cross-border movement of cargo vehicles. Many containers have been stranded across the border due to road obstruction caused by natural disasters.