--By Akhilesh Tripathi

 

Nepal and Nepal Mexico established diplomatic ties on 25 November 1975. Though the two countries have enjoyed friendly relations ever since, diplomatic activities between them have been rather unhurried. Nepal’s ambassador to the USA works as the non-residential ambassador to Mexico while Mexico’s ambassador to India works as the non-residential ambassador to Nepal. There have been no official visits between the two countries so far (apart from those of the ambassadors) though the two countries have been meeting at international forums now and then.

 

Recently, the two countries came a step closer to consolidating the bilateral ties as Mexico opened a Consulate Office in Kathmandu and appointed an Honorary Consul on June 3, 2014. Fiji’s newly-appointed Honorary Consul to Nepal, Naresh Dugar thinks this is the beginning of a new era in Nepal-Mexico relations. “Now, the Consulate will work to enhance the ties between Nepal and Mexico,” Dugar says, “Now we will explore various opportunities between Nepal and Mexico including trade and investment.”

 

Exchange of visits

There haven’t been many official visits of higher authorities between Nepal and Mexico. Hari Bahadur Basnet, the then Minister for Industry, Commerce and Supply visited Mexico in 2003 to participate in the WTO conference. Recently, Finance Minister Dr Ram Sharan Mahat visited Mexico to participate in one international meeting on efficient economic aid. 

 

 

Trade and Investment

Despite good possibilities, bilateral trade remains very low. In fact, business and trade possibilities between the two countries remain unexplored so far. According to officials at the Ministry of Foreign Affairs, Nepal and Mexico can reap benefits through cooperation in trade and investment, educational and cultural promotion. 

 

According to Mexico’s ambassador to Nepal, Jaime Nualart, there are several sectors such as hydropower, tourism, infrastructure etc in Nepal where Mexican investors can invest. “But to attract Mexican investment, Nepal should put in place the right policies and offer good incentives. Nualart also thinks that it’s high time Nepal and Fiji signed an agreement on Bilateral Development and Cooperation.

 

As yet, there is no bilateral economic cooperation between Nepal and Mexico. Meanwhile, with a view to strengthen cultural and educational relations between Nepal and Mexico, a draft agreement on educational and cultural cooperation has been proposed which is presently under study. Ambassador Nualart says that Mexico is currently studying the draft agreement and hopes that it would be approved soon.

 

As of July 2012, 3 joint ventures with Mexican investment of Rs. 26 million were set up in Nepal which created 60 employment opportunities.