Lipulekh Dispute: As India Prepares to Resume Trade with China, What Is Nepal Doing?
Image source, Reuters
Reading time: 6 minutes
The government of India in Uttarakhand has announced plans to resume cross-border trade with China through the Lipulekh border point starting this year, six years after the last trade activity. In response, the Nepalese government has commenced a detailed study and is preparing an appropriate diplomatic reaction.
On Friday, the Press Trust of India (PTI) quoted the District Magistrate of Pithoragarh that preparations are underway to conduct cross-border trade scheduled from June to September under directives from the Indian government.
Nepal’s Foreign Minister Balananda Sharma confirmed ongoing discussions and stated that the Nepalese government will prepare an appropriate response.
Both Nepal and India claim the Lipulekh area as sovereign territory. However, recent Chinese advances towards the tri-junction border points have caused dissatisfaction in Nepal.
In August, during Chinese Foreign Minister Wang Yi’s visit to India, the two countries agreed to restart trade via the Lipulekh pass. Nepal had meanwhile alerted its concern, emphasizing Lipulekh as integral to Nepalese territory and objecting to the use of this route for trade.
A member of the National Independent Party’s international relations division expressed support for resolving border issues through dialogue and commented that current public information contains inaccuracies.
What Are the Responses Within Nepal?
The National Independent Party, which gained the highest number of votes in the House of Representatives election held on Falgun 21, is reportedly studying the issue thoroughly and preparing to provide a suitable response regarding the news of India and China resuming border trade.
Foreign Minister Balananda Sharma told the BBC, “We are studying this issue and considering our next course of action.”
PTI had quoted District Magistrate Ashish Kumar Bhattarai confirming preparations for trade operations from June to September.
India’s Ministry of External Affairs reportedly issued a ‘No Objection Letter,’ and Foreign Secretary Vikram Mishra communicated with Uttarakhand Chief Secretary Anand Vardhan authorizing trade through the Himalayan border.
The letter also indicated that India’s Home Ministry and Ministry of Commerce and Industry had granted their permission.
Nepalese officials said talks occurred after the news broke and that Nepal will respond in some form.
An informed official stated, “It is common not to issue an immediate reaction based solely on news reports. Once the government’s position is clear, we will respond accordingly. We are currently trying to understand the matter.”
In August, Nepal issued a statement reiterating that Limpiyadhura, Lipulekh, and Kalapani, areas west of the Mahakali River, are integral parts of Nepal.
The Ministry of Foreign Affairs stated, “Nepal’s official maps clearly establish those territories as integral parts of Nepal per the constitution.”
Nepal requested that India refrain from any road construction or trade activities in the disputed area and had also informed China.
Nepal also reaffirmed its commitment to resolving the border dispute diplomatically, emphasizing the longstanding friendly and close ties with India.
India has rejected Nepal’s claims as historically unfounded and argued that these claims lack justification.
A spokesman of India’s Ministry of External Affairs acknowledged Nepal’s claims but dismissed the idea of accommodating unilateral territorial expansion.
India asserts that it has been conducting trade with China through the Lipulekh pass since 1954.
What Is the National Independent Party Leader’s View?
Image source, Byas Rural Municipality
The National Independent Party stated in September that Lipulekh, Limpiyadhura, and Kalapani are sovereign parts of Nepal based on the 1816 Sugauli Treaty and other historical agreements.
The party’s international relations head issued a statement: “The party stands firm like the Himalayas on this issue, supported by historical, geographical, political, and legal evidence that unambiguously establishes Nepal’s rights.”
Their election manifesto promised to address border disputes through high-level diplomatic dialogue.
“We will initiate top-level diplomatic efforts to permanently resolve border disputes and historical agreements not through sentiment but grounded in facts and evidence,” the statement added.
Vikram Timilsina, a member of the party’s international department, commented, “The situation may not be exactly as reported. It is better to prevent escalation and not let the dispute worsen through negotiations.” He added, “No one can decide beyond what Nepal’s constitution defines. Both sides should seek solutions through bilateral talks.”
India and China’s ‘Neglect’: What Do Experts Suggest?
A decade ago, during Indian Prime Minister Narendra Modi’s visit to Beijing, a 41-point joint statement included an agreement to increase trade through three border points, including Lipulekh.
In May 2015, the then Prime Minister Sushil Koirala’s government issued diplomatic notes expressing Nepal’s disagreement with the trade via that disputed route to India and China.
Koirala’s foreign policy advisor Dinesh Bhattarai recalls Nepal’s firm position at that time.
Bhattarai stated, “We clearly stated in the note that any actions taken without our knowledge and approval are unacceptable and that what has been done so far does not change reality. We asked for rectification.”
However, India and China did not respond to those notes. Later, in November 2019, after India included the Kalapani area in its political map, the border dispute has become more complex.
Nepal responded by issuing a new map showing Kalapani, Lipulekh, and Limpiyadhura as part of Nepal’s territory, which India rejected, straining bilateral relations.
As the National Independent Party prepares to form a government with a parliamentary majority in Kathmandu, some experts say the Lipulekh dispute will test the new government’s diplomatic skills.
Bhattarai commented, “This is a major test. It remains to be seen how calmly and effectively the new government addresses this. A restrained yet impactful diplomacy is necessary.”
He added, “How the government protects national interests is crucial. It must behave disciplinarily and prudently in improving ties with India.”
Bhattarai suggests Nepal should continuously raise this issue with both India and China.
In 2014, Prime Minister Modi’s address to Nepal’s Constituent Assembly received wide acclaim.
While the joint statement then tasked the foreign secretaries of both countries to resolve the dispute, experts express concern that no foreign secretary-level meetings on the border issue have occurred over the past 11 years.
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