China inks MoU with Nepal on feasibility study for FTA

On March 21, China’s Ministry of Commerce (MOC) announced that it has signed a memorandum of understanding (MoU) with the commerce ministry of Nepal regarding a feasibility study on a possible free trade agreement (FTA) between the two countries. Accordingly, the two sides will set up a task group to conduct a comprehensive study on an FTA.

 

In 2015, the trade volume between the two countries amounted to $866 million, while non-financial foreign direct investment (FDI) by Chinese companies in Nepal amounted to $32.03 million. At present, China is Nepal's second-largest trading partner and its main source of investment.