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China and Nepal Agree to Re-open Key Trade Route

| Nov 05, 2015 08:59 PM EST

The route has remained off limits since the calamity struck on April 25 due to extensive damage on both sides of the border, leaving infrastructure in shambles.

Customs officials from China and Nepal have decided to resume operations in the Khasa-Tatopani border point, which incurred damage from a strong earthquake earlier this year, according to a report by China Daily.

The route has remained off limits since the calamity struck on April 25 due to extensive damage on both sides of the border, leaving infrastructure in shambles.

According to Damodar Regmi, deputy director-general of Nepal's Department of Customs, China has already agreed to relocate its customs office to a suitable location nearby.

The development is welcome news for Nepal, whose largest volume of inland trade with China takes place in Khasa-Tatopani, comprising 25 percent of total trade with the mainland.

"As it is the most important trade route for Nepal at the moment, we insisted on resuming the operation of the route and the Chinese responded positively," said Regmi.

In addition, the two countries agreed to mobilize joint teams to assess the feasibility of operating and supplying other border points between the two countries.

Aside from facing the consequences of the earthquake, Nepal is experiencing a stringent economic blockade on its southern border. The country puts the blame on India as it tries to open more trade routes with China in order to compensate.

"The Indian embargo showed us that we need more trade routes with China to ensure the supply of necessary goods," said Regmi. "The Chinese side was positive to simplify the process to ease market access. They asked us to first identify the key problems and send to them."

China has also promised to work toward easing barriers against Nepal's product exports to the mainland.

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