“TIFA” Agreement between Nepal and Australia, what is TIFA Agreement?

Kathmandu. During the visit of Foreign Minister NP Saud to Australia in the last week of January, Nepal and Australia signed a ‘TIFA’ agreement on trade and investment.
The agreement was signed by the Ambassador of Nepal to Australia, Kailashraj Pokharel, and the Assistant Foreign Minister of Australia, Tim Wattsbeach. The agreement was signed in the presence of Foreign Minister Saud and Australian counterpart Penny Wong.
After the signing, the Foreign Ministers of both the countries were of the opinion that the agreement will be important to take the friendly relations between Nepal and Australia to a higher level. Australian Assistant Foreign Minister Watts, who signed the agreement, said that the relationship between Australia and Nepal has reached the people’s level.
But there is still confusion about the importance and justification of the agreement. Regarding the agreement, the Nepalese Ambassador to Australia, Kailashraj Pokhrel, said that ‘Trade and Investment Framework Agreement (TIFA)’ will be helpful for facilitation, promotion and technical assistance to increase trade and investment between the two countries.
The TIFA agreement signed in the Western state of Perth, Australia, will establish a mechanism for facilitation, engagement and technical assistance to increase trade and investment between the two countries, and high officials of the relevant agencies of both countries will be involved.
Ambassador Pokhrel has informed that the committee named as ‘Joint Australia-Nepal Investment Committee’ will be conducted by the Ministry of Industry, Commerce and Supply in Nepal and the Department of Foreign Affairs and Trade (DAFT) from Australia. Ambassadors will also be represented in the committee.
The meeting of the mechanism will be held alternately every two years in both countries. Pokharel said that every issue of increasing trade and investment between the two countries will be discussed in the meetings.
“In the meeting, there will be a detailed discussion on various topics including possibilities, challenges, improvement measures, attracting and facilitating the private sector, and various agencies will act accordingly,” Pokharel said.
The issues raised in the meeting will be resolved after continuous efforts, negotiations, formal-informal talks, discussions and coordination between the officials of both countries and at the political level. According to Ambassador Pokharel, the agreement has renewed the relationship between the two countries and has created hope between the private sector and diaspora of both countries.