Law Info Nepal

5 Nepal's Relations with India, China and the USA

यो उत्तर युनिट १ मा छ — पूरै निःशुल्क।

5.1 India — the "special relationship"

Foundations: the 1950 Treaty of Peace and Friendship (open border, reciprocal residence- property rights, security consultation obligations — and the revision debate that shadows everything); geography (land borders on three sides, rivers flowing south, the Terai's economic spine); economy (India as the largest trade partner and the essential transit route; petroleum and electricity trade — Nepal exporting hydropower to India in the monsoon surplus and importing in winter); culture (open border, kinship, marriage, religion — and the consequent sensitivities); Gurkha recruitment legacy. Cooperation record: peace process support, post-earthquake relief (2015), infrastructure (cross-border petroleum pipeline — Motihari–Amlekhgunj, a South Asian first; integrated check posts; transmission lines; Jaynagar–Bardibas railway's first section). Frictions' catalogue: the 1950 treaty's perceived inequality; border disputes (Kalapani/Lipulekh — the 2020 map episode; Susta; the border working group's slow pace); the 2015–16 obstruction's scar; trade deficit and non-tariff frictions; periodic map/territory politics. The through-line: interdependence with asymmetry — friendship by necessity, friction by proximity.

5.2 China — the northern neighbour

From the 1955 establishment of relations and the 1960 Treaty of Peace and Friendship (respect for sovereignty, non-interference, equality — the pure Panchasheel text) to today's comprehensive partnership: the boundary settlement (1961 treaty; joint pillars; peaceful, largely settled frontier — note the humla/Tinkar-type local matters), the Araniko highway era, and the modern wave — post-2015 investment and connectivity: the BRI framework (2017), the transit protocol (2019), Chinese-built airports (Pokhara International, operational since 2023), hydropower involvement (the West Seti story's turns), telecoms and digital presence, tourism (China briefly Nepal's second tourist source), and Tibet's stability as China's standing concern (the refugee transit issue handled quietly under the "gentleman's agreement" tradition). The Chinese relationship's structure: no open border, growing but geographically constrained trade (the Himalayan passes), and the strategic effect Nepal seeks — a northern option that counterweights India without provoking it. Frictions: debt-and-transparency debates, project pace, and the challenge of not becoming an arena of the India–China rivalry.

5.3 The USA — the oldest Western partner

Relations from 1947–48 (among the first to engage independent Nepal; diplomatic relations 1948), USAID's continuous presence since 1951 (health, agriculture, education, democracy), the Peace

Corps, the Fulbright culture; anti-trafficking and HIV programmes' legacy; MCC (the US$500 million energy-and-transport compact, its 2022 ratification crisis the moment the Indo-Pacific era reached Nepal's parliament); the State Partnership Program controversy (the Nepal Army–US National Guard cooperation debate); and the steady truth: the USA is Nepal's major development partner and a valued balancer of options, with human-rights conditionality its periodic friction.

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