--By Akhilesh Tripathi

 

Nepal and France are old friends. The two countries have enjoyed a very friendly and cordial relationship ever since establishing diplomatic relations on 20 April 1949, during the Rana Rule in Nepal. Currently, both countries have residential missions in each other's capitals. “The relations between Nepal and France have always been marked by goodwill, trust and mutual respect,” says Tara Prasad Pokharel, joint secretary and head of the Europe America Division at the Ministry of Foreign Affairs (MoFA).

 

Bilateral Cooperation 

 

According to MoFA officials, a bilateral economic cooperation programme between Nepal and France was started in 1981 when the two countries signed the First Protocol amounting to French Franc 50 million. Later, the French Government converted the debt into grant,” informs Pokhrel. French assistance to Nepal has been in the form of grant, treasury loan and commercial loans. According to officials of the foreign ministry, the main areas of French cooperation to Nepal are national seismologic network, petroleum exploration, water supply, Kavre and Gulmi and Arghakhanchi Rural Development Projects, rehabilitation of airports, 'food for work', among others.

 

There are several French NGOs operational in Nepal, working mainly in the areas of health and education. France contributes multilateral aid to developing countries through United Nations agencies and other International Organizations.  

 

 

Trade and Investment

According to statistics maintained by the Trade and Export Promotion Centre (TEPC), Nepal exports pulses, incense sticks, handmade papers, carpet, handicrafts, ready-made garments, woolen goods, silver jewellery etc. to France. Similarly, Nepal imports machinery and parts, industrial raw materials, aircraft and spare parts, fertilizer, telecommunications equipment, electrical goods, scientific research equipment etc. from France. The value of import is higher than that of export. 

 

In 1983, Nepal and France signed an agreement on Reciprocal Promotion and Protection of Investment. The major areas of French investment are in hotels, restaurants, medicine, aluminum windows and doors, vehicle body building sectors. Several French companies have expressed their interest in the hydropower sector.  “Nepal has always been on the radar of French investors for years but uncertainty about the political environment was a kind of hindrance for them,” says French ambassador to Nepal, Martine BASSEREAU.

 

As of July 2012, French investors have invested Rs. 350 million in 57 various joint venture projects in Nepal, which has created 2,273 jobs.