Kathmandu, October 4: The 12th meeting of the Joint Commission between Nepal and the European Union (EU) took place on 2 October 2020 via video conference. A wide range of issues of mutual interest was discussed in a cordial, candid, and constructive atmosphere.
“The meeting focused on the current COVID-19 pandemic and the social and economic impacts in both Nepal and the EU. The EU prepared in April a €75 million support package for Nepal with the aim to stimulate the economy and labour demand, thereby supporting people’s incomes,” says a joint press release issued by the two sides.
Nepal and the EU agreed that the current crisis highlighted the importance of an effective multilateral system and underlined that the World Health Organisation (WHO) is central to our collective efforts to tackle the pandemic. They also consented on the need to strengthen the global capacity to prevent and respond to future pandemics.
During the meet, Nepal welcomed the EU’s strong support for the G20 Debt Service Suspension Initiative (DDSI) as well as for the extension of the Initiative for another year at the upcoming G20 Finance Ministers and Central Bank Governors/ IMF-World Bank Group Annual Meetings in October.
The two sides also agreed that the swift and full implementation of the DDSI by all official bilateral creditors is a key priority in order to ensure predictability given the continuing financing pressures on the beneficiary countries owing to the pandemic.
The Nepali delegation briefed on efforts being made by the Government to contain and fight the global pandemic in Nepal and provided an update on its economic impact, according to the release.
It also updated the EU on the impact on the implementation of the Sustainable Development Goals (SDGs) and underlined its commitment to deliver on those in line with the national aspiration of “Prosperous Nepal, Happy Nepali”. The Government of Nepal also presented its plans for graduation from Least-Developed Country status to a middle-income country.
On the occasion, the EU informed about the preparations for the programming and implementation of the new Neighbourhood, Development and International Cooperation Instrument (NDICI) which will be the EU’s main instrument for international cooperation and development assistance as of 2021.
In the Sub-Commission on Development Cooperation held on 29 September, Nepal and the EU took stock of the progress achieved and lessons learned in the implementation of ongoing cooperation, particularly in rural development, nutrition, education, governance, trade and investment.
During the meet, Nepal and the EU welcomed the recent signature of the Financing Agreements on Nepal’s Multi-sector Nutrition Action Plan (€22 million) and on Provincial and Local Government Support Programme (€33 million); as well as the adoption of the European Commission’s Financing Decision in favour of Supporting Nepal’s School Sector (€20 million) to be implemented through budget support and complementary technical assistance.
As important trading partners, Nepal and the EU exchanged views on their bilateral trade relations. The EU reiterated its long-standing commitment to support Nepal’s development also through trade, particularly in the context of the Everything But Arms (EBA) scheme , the EU’s most preferential trade regime providing duty-free and quota-free access to the EU market, as well as via the €8 million Trade and Investment Programme launched in 2019. The Joint Commission participants welcomed the lending activity of the European Investment Bank (EIB) in Nepal, which will focus on climate change mitigation and adaptation, as well as improved connectivity in the coming years.
Regarding people-to-people contacts, Nepal and the EU discussed ongoing higher education cooperation, whereby there has been a growing number of Nepali students studying in European universities. Nepal ranks among the top 20 countries worldwide in terms of students being awarded scholarships for Erasmus Mundus Joint Master Degree programmes.
Nepal briefed on its substantial efforts to improve air safety, notably regarding the proposed new aviation legislation, which is currently under consideration of the Federal Parliament of Nepal, according to the release.
The EU acknowledged this positive development while reiterating that further progress needed to be made in the implementation of the legislation In view of continuing to work together on this issue, the EU announced that it is looking forward to developing a technical assistance project to the Civil Aviation Authority of Nepal in order to support their efforts to enhance the aviation safety oversight in Nepal.
As current chair of the South Asian Association for Regional Cooperation (SAARC), Nepal briefed about SAARC’s priorities and the activities during the COVID-19 pandemic.
