India has asked Nepal to implement commonly acceptable standards for exports of Nepali agriculture and non-agriculture products to the southern neighbour.

According to a Nepali official, India has put forward a proposal of developing common standards for both the countries and requested for the signing a memorandum of understanding (MoU) for the purpose. “We cannot compromise on standards of traded goods,” the Nepali official quoted Indian officials as saying.

On Tuesday, Nepal had asked for the removal of non-tariff trade barriers imposed by India recently on Nepali exports.

But India sought common standards in almost all major Nepali agriculture products like tea, cardamom and ginger. “They expressed a similar view in non-agriculture products too, including processed leather,” he said.

In the two-day inter governmental committee meeting that started from Tuesday, Nepal urged India to help it in reducing its trade deficit. “However, the Indian side seems reluctant,” said the official, adding India instead asked for maintaining investment environment. “The Indian officials asked to maintain security and enforce a stern labour law,” said the source.

The Indian side is reported to have expressed their concern on slow progress in implementing Bilateral Investment Promotion and Protection Agreement (BIPPA) signed in 2011.

India also appears firm on Nepal’s request for easing procedures to send money through Indian banks. The Indian officials said they had been allowing such a service, but added Nepalis should produce authentic identity cards.

Currently, Nepali people need authentication of Indian government officials to open bank accounts in India. Nepalis cannot carry more than IRs25,000 cash while travelling to Nepal from India. Anyone having opened bank accounts there cannot send more than IRs50,000 even through the banking channel.

According to the Nepali official, the Indian side has agreed to ease customs procedures. Developing infrastructure and avoiding traffic congestion in bordering areas and simplifying customs clearance process at entry ports, including the Visakhapatnam port, are some of other issues that India has agreed to.