The Government of India and Government of Nepal which are referred to as the contracting parties into this agreement shall explore and undertake all the measures to expand, facilitate and promote trade between the two countries. These measures also include technical cooperation.
There are several reasons for which this trade agreement have came into place. There's a need to fortify the traditional connection between the both markets. Both countries desire to strengthen economic cooperation between them in order to develop their economies. Both are well awared of the benefits, which mutual sharing of technical and scientific knowledge and experience could bring into the promotion of mutual trade. For these reasons, they have resolved to conclude a treaty of trade for expanding trade between the respective territories of both countries to encourage collaboration in the economic development.
main objective of this agreement is to making contracting parties undertake all necessary measures and to grant maximum facilities for the unhampered and free flow of goods required by one country from the other to and from their respective territories.
Both parties shall accord unconditionally to each other. There would be no less favour than that accorded to any third country in terms of import regulations and customs duties/charges of any kind imposed on or in connection with exportation and importation.