Streamlining Nepal’s trade competitiveness

The recent amendment to the Railway Services Agreement between Nepal and India helps end the monopoly in serving Nepali cargo.

The second amendment to the Railway Services Agreement (RSA) between Nepal and India earlier this month has finally come as good news for those who are concerned about the transit rights of a landlocked country like Nepal. RSA is a bilateral arrangement that governs and facilitates the country’s transit concerns via India. As the cost implication of railway vis-a-vis road connectivity is much cheaper while serving its international trade, any progress in RSA signifies a great deal in reducing transaction cost, thereby increasing Nepal’s trade competitiveness.