Nepal Opposes India-China Trade Through Lipulekh Pass

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Nepal officially objected to the resumption of border trade between India and China through the Lipulekh Pass, as the country claims sovereignty over the area. India dismissed Nepal’s claim as unjustified, while China called it a bilateral issue to be resolved between India and Nepal. Nepal claims the pass, along with the Kalapani and Limpiyadhura regions, is part of its territory.

 Timeline of events

• August 19: During a visit by Chinese Foreign Minister Wang Yi to New Delhi, India and China announce an agreement to reopen three border trade points, including the Lipulekh Pass.
• August 20: Nepal’s Ministry of Foreign Affairs issues a statement asserting its constitutional claim to Lipulekh and the surrounding areas of Kalapani and Limpiyadhura. It notes that Nepal has requested India not to conduct trade or construction in the region and has also informed China of its position.
• August 20: India’s Ministry of External Affairs responds, stating that the border trade route has existed since 1954 and was only paused due to COVID-19. It calls Nepal’s territorial claims “untenable” and “not based on historical facts”.

Historical context of the dispute

The disagreement stems from differing interpretations of the 1816 Treaty of Sugauli between Nepal and the British East India Company, which set the Kali River as the border.

• Nepal’s argument: Nepal claims the Kali River originates at Limpiyadhura, placing the pass and the Kalapani region to the east and within its territory.
• India’s argument: India asserts that the river originates at a different point further downstream, putting the contested areas within India.

Strategic importance of Lipulekh for India

For India, the pass is strategically important for managing its border with China and provides access to Tibet for trade and the Kailash Mansarovar pilgrimage.