Foreign relations of Nepal
Encyclopedia
The Federal Democratic Republic of Nepal
Nepal
Nepal , officially the Federal Democratic Republic of Nepal, is a landlocked sovereign state located in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India...

 has traditionally maintained a non-aligned policy and enjoys friendly relations with neighboring countries, especially India and China. As a small, landlocked country wedged between two larger and far stronger powers, Nepal
Nepal
Nepal , officially the Federal Democratic Republic of Nepal, is a landlocked sovereign state located in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India...

 maintains good relations with both China
People's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...

 (People's Republic of China) and India
India
India , officially the Republic of India , is a country in South Asia. It is the seventh-largest country by geographical area, the second-most populous country with over 1.2 billion people, and the most populous democracy in the world...

.

Constitutionally, foreign policy is to be guided by “the principles of the United Nations Charter
United Nations Charter
The Charter of the United Nations is the foundational treaty of the international organization called the United Nations. It was signed at the San Francisco War Memorial and Performing Arts Center in San Francisco, United States, on 26 June 1945, by 50 of the 51 original member countries...

, nonalignment, Panchsheel [five principles of peaceful coexistence], international law
International law
Public international law concerns the structure and conduct of sovereign states; analogous entities, such as the Holy See; and intergovernmental organizations. To a lesser degree, international law also may affect multinational corporations and individuals, an impact increasingly evolving beyond...

 and the value of world peace.” In practice, foreign policy has not been directed toward projecting influence internationally but toward preserving autonomy and addressing domestic economic and security issues.

Nepal’s most substantive international relations are perhaps with international economic institutions, such as the Asian Development Bank
Asian Development Bank
The Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia...

, the International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...

, the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

, and the South Asian Association for Regional Cooperation
South Asian Association for Regional Cooperation
The South Asian Association for Regional Cooperation is an organisation of South Asian nations, founded in December 1985 by Ziaur Rahman and dedicated to economic, technological, social, and cultural development emphasising collective self-reliance. Its seven founding members are Bangladesh,...

, a multilateral economic development association. Nepal also has strong bilateral relations with major providers of economic and military aid, such as France, Germany, Japan, Switzerland, the United States, and particularly the United Kingdom, with whom military ties date to the nineteenth century.

Multilateral relations of Nepal

Nepal has played an active role in the formation of the economic development-oriented South Asian Association for Regional Cooperation
South Asian Association for Regional Cooperation
The South Asian Association for Regional Cooperation is an organisation of South Asian nations, founded in December 1985 by Ziaur Rahman and dedicated to economic, technological, social, and cultural development emphasising collective self-reliance. Its seven founding members are Bangladesh,...

 (SAARC) and is the site of its secretariat. On international issues, Nepal follows a nonaligned policy and often votes with the Non-Aligned Movement
Non-Aligned Movement
The Non-Aligned Movement is a group of states considering themselves not aligned formally with or against any major power bloc. As of 2011, the movement had 120 members and 17 observer countries...

 in the United Nations
United Nations
The United Nations is an international organization whose stated aims are facilitating cooperation in international law, international security, economic development, social progress, human rights, and achievement of world peace...

. Nepal participates in a number of UN specialized agencies and is a member of the World Bank
World Bank
The World Bank is an international financial institution that provides loans to developing countries for capital programmes.The World Bank's official goal is the reduction of poverty...

, International Monetary Fund
International Monetary Fund
The International Monetary Fund is an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world...

, Colombo Plan
Colombo Plan
The Colombo Plan is a regional organization that embodies the concept of collective inter-governmental effort to strengthen economic and social development of member countries in the Asia-Pacific Region...

, and the Asian Development Bank
Asian Development Bank
The Asian Development Bank is a regional development bank established on 22 August 1966 to facilitate economic development of countries in Asia...

.

Human rights issues

Police forces sometimes use excessive force in quelling violent demonstrations, or demonstrations that may upset 'friendly countries'. In addition, there have been reports of torture under detention and widespread reports of custodial abuse. In 2000, the government established the Human Rights Commission, a government-appointed commission with a mandate to investigate human rights violations. To date, the Commission has investigated 51 complaints.

Some restrictions continue on freedom of expression. Trafficking in women and child labour remain serious problems. Discrimination
Discrimination
Discrimination is the prejudicial treatment of an individual based on their membership in a certain group or category. It involves the actual behaviors towards groups such as excluding or restricting members of one group from opportunities that are available to another group. The term began to be...

 against women and lower caste
Caste
Caste is an elaborate and complex social system that combines elements of endogamy, occupation, culture, social class, tribal affiliation and political power. It should not be confused with race or social class, e.g. members of different castes in one society may belong to the same race, as in India...

s is prevalent.

International disputes

A joint border commission continues to work on small disputed sections of the border with India; India has instituted a stricter border regime to restrict transit of Maoist insurgents.

Illicit drugs

Illicit production of cannabis
Cannabis (drug)
Cannabis, also known as marijuana among many other names, refers to any number of preparations of the Cannabis plant intended for use as a psychoactive drug or for medicinal purposes. The English term marijuana comes from the Mexican Spanish word marihuana...

 for domestic and international drug markets continues to ask as an international problem, as do rumours that the country operates as a transit point for opiates from Southeast Asia to the West

Argentina

Nepal and Argentina established diplomatic relations on January 1, 1962. The relations between Nepal and Argentina are based on goodwill, friendship and mutual understanding. The Argentinean Government has shown interest to extend technical cooperation on leather processing industries in Nepal under the South-South Cooperation. However, the Argentinean proposal has not been materialized yet. Nepal's trade balance with Argentina is in favour of Argentina. There is no significant figure of export from Nepal. Major commodities imported by Nepal from Argentina are Crude soybean oil, soybean oil, vegetable waxes, sun flower oil and maize.

Bhutan

Relations with Bhutan
Bhutan
Bhutan , officially the Kingdom of Bhutan, is a landlocked state in South Asia, located at the eastern end of the Himalayas and bordered to the south, east and west by the Republic of India and to the north by the People's Republic of China...

 have been strained since 1992 over the nationality and possible repatriation of refugees from Bhutan.

European Union

The role of the European Union is to present, explain and implement EU policies, analyze and report on the political, social, and economic situation in Nepal, and to conducts negotiations in accordance with a given mandate.

Germany

Nepal-Germany Relations

Political Relations

Diplomatic relations between Federal Democratic Republic of Nepal and the Federal Republic of Germany
were established on 4 April 1958. Since then relations between the two countries have been growing on the
basis of friendship and mutual cooperation. The German Government has positively supported the ongoing
peace process of Nepal including the formation of government following the historic elections of the
Constituent Assembly in April 2008. Both countries celebrated the 50th anniversary of the establishment of
formal diplomatic relations with various programmes in 2008.
The Government of Nepal has appointed Honorary Consuls General in Munich and Stuttgart cities and
Honorary Consuls in Frankfurt am Main, Cologne and Hamburg cities.
Exchange of visits between two countries has taken place at different levels including highest levels. The
visits have contributed to further strengthening close and cordial bilateral relations.
Visits from the Nepalese side
The most recent one is the visit of the then Prime Minister Hon’ble Mr. Pushpa Kamal Dahal ‘Prachanda’
and the then Minister for Foreign Affairs Hon’ble Mr. Upendra Yadav. The Prime Minister made a stopover
in Frankfurt on 21 and 22 September 2008 on his way to attend the United Nations General Assembly in
New York. During his sojourn, he addressed a conference of the Nepali Ambassadors and Head of Missions
based in Europe and gave pertinent directives to them to promote a economic diplomacy through utilisation
of external private investments in Nepal’s mega projects, infrastructure schemes and hydro-electric project,
and familiarise the host governments with the Government’s objective of taking the peace process to its
logical conclusion through institutionalisation of Federal Democratic Republic and drafting of a new
Constitution. The Prime Minister also visited the Karl Max Museum in Trier on 21 September 2008.
Likewise, the then Minister for Foreign Affairs Hon’ble Mr. Upendra Yadav visited Germany from March 9
to 13, 2009 leading a delegation. During his visit, he made an inaugural address of the Nepal Presentation
programme amid the gathering of German and Nepalese businessmen and industrialists on March 10, 2009,
which was organised as a part of celebrations to mark the Golden Jubilee of the establishment of formal
diplomatic relations between Nepal and Germany. The Foreign Minister also held bilateral meeting with
German Acting Federal Foreign Minister, H. E. Mr. Guenter Gloser on March 11, 2009. During the bilateral
meeting entire gamut of bilateral relations including regional and international issues were discussed.
Foreign Minister Yadav also had a meeting with Vice-President of the German Lower House of Parliament
(Bundestag) Dr. Wolfgang Thierse on March 13, 2009. During the stay in Berlin, he also visited the Konrad
Adenauer Foundation and Friedrich Ebert Foundation and met their Chairman Prof. Dr. Bernhard Vogel,
and Chairwoman Dr. Anke Fuchs respectively.
Visits from the German Side

- President Heinrich Luebke paid an official visit to Nepal in July 1967.
- Chancellor Helmut Kohl paid an official visit to Nepal in 1987
- President Prof. Dr. Roman Herzog paid a state visit to Nepal from 25 to 30 November 1996.
Besides these, there have been frequent visits of parliamentary delegations of the German Bundestag
in the recent years.

German policy towards Nepal

Establishment of peace and stability, multi-party democracy, promotion of human rights, alleviation of
poverty, and consolidation of good governance, and sound socio-economic structures are some of the major
thrust areas of German policy towards Nepal.

Economic Cooperation

With the start of bilateral cooperation in 1961 in the form of technical assistance for the establishment of the
Technical Training Institute at Thapathali, the present level of bilateral cooperation covers the core sectors
of socio-economic development of Nepal with the volume of bilateral aid committed by Germany to Nepal
totalling approximately Euro 800 million. There is a bilateral consultation mechanism between the Finance
Ministry of Nepal and the Federal Ministry of Development Cooperation (BMZ) of Germany which is held
normally every two years at the secretary level. The bilateral consultation meeting decides the areas of
cooperation of the German Government to Nepal, which were held in Kathmandu in 2004, 2006 and on
December 15–16, 2008.
Germany is one of the major donors for Nepal's development efforts. Germany is also a member of Nepal
Development Forum. The German Development Bank (KfW) has taken a keen interest in Nepal’s
development. Besides, a number of German non-governmental organisations as well as institutions like
German Technical Services (GTZ), German Academic Exchange Programme (DAAD) and German
Volunteers Service (DED) are very active in promoting our socio-economic development. The German
Government’s present priority areas of development cooperation to Nepal as agreed between the two
Governments are - renewable energy and energy efficiency, health and family planning, and promotion of
local self-governance and civil society. Besides, ongoing peace process is another area of German assistance
to Nepal.
Among the projects under the German cooperation, the Middle-Marsyangdi Hydro Electric Project is a
major one. The project was funded by German Development Bank (KfW), Government of Nepal and Nepal
Electricity Authority and has the installed capacity of 70 MW. The project has already been inaugurated by
Rt. Hon’ble Prime Minister Pushpa Kamal Dahal ‘Prachanda’ on 14 December 2008. A high-level German
delegation from the Federal Ministry of Development Cooperation (BMZ) was in Nepal to take part in the
inauguration programme.

Bilateral Trade

Although Germany maintains the biggest export market for Nepali products, export of Nepalese products to
Germany has been declining since 1999. Lately, the decline in the export of woollen carpets has been the
main reason for decrease in overall export to Germany. Besides carpet, exports to Germany from Nepal
include handicraft, silver jewellery, woollen and pashmina goods, Nepalese paper and paper products, tea,
medicinal herbs and essential oils, readymade garments, spices, honey etc. Some joint venture companies
have started export of micro- transformers and high-value garments and knitwear to the German market.
Nepal imports mainly industrial raw materials, chemicals, machinery equipment and parts, electric and
electronic goods, vehicles etc. from Germany.
Following table shows the balance of trade situation of Nepal
with Germany in recent years.

(Value in ‘000 Nepalese Rupees)
Year Export Import Balance of Trade
2002/2003 3,555,327 2,278,356 1,276,971 (+ve)
2003/2004 3,567,036 1,977,896 1,589,140 (+ve)
2004/2005 3,121,753 1,570,917 1,550,836 (+ve)
2005/2006 2,843,770 2,761,788 81,982 (+ve)
2006/2007 2,573,710 2,432,693 141,017 (+ve)
2007/2008 2,332,051 3,430,346 1,098,294 (-ve)
Source: Trade and Export Promotion Centre

Tourist Arrival from Germany
Apart from trade, Germany is also important for the promotion of Nepal's tourism industry. The tourist
inflow in Nepal by air from Germany in the years 2006, 2007 and 2008 were 12,098, 16,920 and 16,228
respectively. But in recent months, the German tourists visiting Nepal is increasing.
Joint Venture from Germany
German investments in Nepal are basically focused in the areas of hotel service, Ayurvedic and herbal
medicines, solar energy, computer software development, tea farming and processing, and hydropower
generation. As of mid April 2006, 19 joint ventures are operating, 2 joint ventures are under construction, 2
joint ventures are licensed, and 20 joint ventures are approved under the German investment in Nepal.
Nepalese Nationals in Germany
The official figure of the German Government shows that there are 2,552 Nepalese in Germany until
December 2008. Among them, 1596 are males and 956 females. Besides, number of Nepali students coming
to Germany is increasing in the recent years.
Miscellaneous
A cultural agreement was signed between Nepal and Germany in 1992 as a framework for implementing
numerous projects largely aimed at preserving the cultural heritage of Nepal. A cooperation agreement
between Deutsche Welle and Radio Nepal has been in effect since 1975. Nepal is also a priority country of
the German Research Foundation (DFG). The German Academic Exchange Service (DAAD) grants regular
scholarships to Nepal.
As of December 2009.

Holy See

Both countries established diplomatic relations in 1985. The Holy See has a nunciature in the country. Nepal Embassy, Berlin is accredited as non-residential embassy for Holy See.*Nepal (nunciature)

India

Because of strong cultural, religious, linguistic, and economic ties, Nepal's association with India traditionally has been close. India and Nepal restored trade relations in 1990, after a break caused by India's security concerns over Nepal's relations with the PRC. A bilateral trade treaty was signed in 1996. Citizens of the two countries can travel to the other without visa requirements. Nepalese citizens are permitted to stay and work in India freely. Nepal's economy has also been enormously benefited from the surge in India's economy.

Israel

Israel-Nepal relations are based on mutual security concerns.

Bishweshwar Prasad Koirala
Bishweshwar Prasad Koirala
Bishweshwar Prasad Koirala was the Prime Minister of Nepal from 1959 to 1960. He led the Nepali Congress, a social democratic political party.Koirala was the first democratically elected Prime Minister in Nepal's history...

, Prime Minister of Nepal from 1959 to 1960, had a strongly pro-Israel foreign policy. King Mahendra
Mahendra of Nepal
Possibly no heir for the time period of 1911 through 1920. Previous Crown Prince: Tribhuvan Bir Bikram Shah, from 1906 to 1911....

 visited Israel in 1963 and maintained Koirala's special relationship.

Japan

Diplomatic relations were established in September 1956. Japan has an embassy in Kathmandu. Nepal has an embassy in Tokyo
Tokyo
, ; officially , is one of the 47 prefectures of Japan. Tokyo is the capital of Japan, the center of the Greater Tokyo Area, and the largest metropolitan area of Japan. It is the seat of the Japanese government and the Imperial Palace, and the home of the Japanese Imperial Family...

. The cultural ties between Nepal and Japan date back to much earlier days before direct people to people contact started in 1899. Japan is one of the largest aid donors to Nepal.

Norway

Diplomatic relations were established on 26 January 1973. Norway established an embassy in Kathmandu in 2000. Norway's aid to Nepal was around 2 million NOK
Norwegian krone
The krone is the currency of Norway and its dependent territories. The plural form is kroner . It is subdivided into 100 øre. The ISO 4217 code is NOK, although the common local abbreviation is kr. The name translates into English as "crown"...

 in 2008. Norwegian aid prioritizes education
Education
Education in its broadest, general sense is the means through which the aims and habits of a group of people lives on from one generation to the next. Generally, it occurs through any experience that has a formative effect on the way one thinks, feels, or acts...

, good governance
Good governance
Good governance is an indeterminate term used in development literature to describe how public institutions conduct public affairs and manage public resources in order to guarantee the realization of human rights. Governance describes "the process of decision-making and the process by which...

 and energy
Energy
In physics, energy is an indirectly observed quantity. It is often understood as the ability a physical system has to do work on other physical systems...

.

In 2008, Norwegian Prime Minister Jens Stoltenberg
Jens Stoltenberg
is a Norwegian politician, leader of the Norwegian Labour Party and the current Prime Minister of Norway. Having assumed office on 17 October 2005, Stoltenberg previously served as Prime Minister from 2000 to 2001....

 and Minister of the Environment and International Development Erik Solheim
Erik Solheim
Erik Solheim is a Norwegian politician for the Socialist Left Party . He holds two posts in the current Norwegian cabinet, and carries the title Minister of the Environment and Minister of Development Cooperation...

 visited Nepal. In 2009, Prime Minister Prachanda visited Norway. In May 2008, a small bomb exploded outside the Norwegian embassy in Kathmandu. No one was injured.

Pakistan

The bilateral relations between the Federal Democratic Republic of Nepal and the Islamic Republic of Pakistan were fully established between 1962 and 1963. Both nations have since sought to expand trade, strategic and military cooperation.

People's Republic of China

Nepal formally established relations with the PRC in 1955, and since then their bilateral relations have generally been very good. As much as 20 thousand Tibetan refugees live in Nepal and this has been a major issue of concern between China and Nepal. Kathmandu has in several instances been brutally cracking down on the activities of the Tibetans receiving international condemnation. In 2005, Nepalese Foreign Minister Ramesh Nath Pandey called China "an all weather friend" and King Gyanendra's regime was also instrumental in inducting China into the SAARC.

Russia

Nepal and the Soviet Union had established diplomatic relations in 1956. After the collapse of the Soviet Union, Nepal had exteneded full diplomatic recognition to the Russian Federation as its legal successor. Since then numerous bilateral meetings have taken place between both sides. Since 1992 numerous Nepalese students have gone to Russia for higher studies on a financial basis. In October 2005 the Foreign ministers of both countries met to discuss cooperation on a variety of issues including political, economic, military, educational, and cultural. Both countries maintain embassies in each others capitals. Russia has an embassy in Katmandu while Nepal has an embassy in Moscow
Moscow
Moscow is the capital, the most populous city, and the most populous federal subject of Russia. The city is a major political, economic, cultural, scientific, religious, financial, educational, and transportation centre of Russia and the continent...

.
  • http://www.mofa.gov.np/bilateral/nepal-russia.php


United Kingdom

Relations between the UK and Nepal have historically been friendly and there have been close links between the Royal Families, although relations deteriorated when the King took power in 2005. A treaty of friendship was signed in 1923. The UK is highly regarded in Nepal. This is through historical ties, development assistance and long term support in the struggle for democratic peace in Nepal. Also of note is that through the recruitment of Gurkha soldiers
Royal Gurkha Rifles
The Royal Gurkha Rifles is a regiment of the British Army, forming part of the Brigade of Gurkhas. The Royal Gurkha Rifles are now the sole infantry regiment of the British Army Gurkhas...

 by the British Army
British Army
The British Army is the land warfare branch of Her Majesty's Armed Forces in the United Kingdom. It came into being with the unification of the Kingdom of England and Scotland into the Kingdom of Great Britain in 1707. The new British Army incorporated Regiments that had already existed in England...

 since the 19th century, Nepal has had links with the United Kingdom
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...

.

United States

  • The United States opened its Kathmandu Embassy in 1959.
  • Relations between the two countries have always been strong. U.S. policy objectives toward Nepal center on helping Nepal build a peaceful, prosperous, and democratic society.

See also

  • Nepal
    Nepal
    Nepal , officially the Federal Democratic Republic of Nepal, is a landlocked sovereign state located in South Asia. It is located in the Himalayas and bordered to the north by the People's Republic of China, and to the south, east, and west by the Republic of India...

  • Nepalese diplomatic missions overseas
  • 1950 Indo-Nepal Treaty of Peace and Friendship
    1950 Indo-Nepal Treaty of Peace and Friendship
    The Indo-Nepal Treaty of Peace and Friendship of 1950 is a bilateral treaty between Nepal and India establishing a close strategic relationship between the two South Asian neighbors. The treaty was signed on July 31, 1950 by the then-Prime Minister of Nepal Mohan Shamsher Jang Bahadur Rana and...

  • List of diplomatic missions in Nepal

External links

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