Nepal's ruling party objects to India-China Lipulekh trade agreement, asks both to withdraw

Prime Minister Narendra Modi with his Nepalese counterpart KP Sharma Oli during a meeting, on the sidelines of the 6th BIMSTEC Summit in Bangkok on April 4, 2025. (Image: X/@narendramodi via PTI)

The ruling party of Nepal, CPN-UML, has objected to an agreement between India and China to resume border trade through Lipulekh pass, and has asked both countries to withdraw from the arrangement.

As Nepal claims Lipulekh as its own territory which India has categorically rejected, the ruling party has submitted a proposal to the Nepal government. T

he proposal mentioned Prime Minister and UML Chairman Oli’s disagreement over the Lipulekh trade route agreement during his recent China visit, noting that this stance elevated Nepal’s international standing.

India and China last month agreed to resume border trade through Lipulekh pass and two other trading points.

Nepal claims Lipulekh as its own territory, a claim that India has categorically rejected as "neither justified nor based on historical facts and evidence."

The party has urged the Nepal government to resolve the issue through high-level diplomatic initiatives and reiterated Nepal's rights over the region east of the Kali River, including Kalapani, Limpiyadhura and Lipulekh, party sources said.

It was included in a 28-point contemporary proposal passed at the second national convention of Prime Minister KP Sharma Oli-led CPN-UML held from September 5–7 at Godavari Municipality of Lalitpur district.

The party urged both countries to withdraw the Lipulekh trade agreement, they said.

The proposal mentioned Prime Minister and UML Chairman Oli’s disagreement over the Lipulekh trade route agreement during his recent China visit, noting that this stance elevated Nepal’s international standing.

It also cited bilateral and multilateral engagements during the trip that enhanced the country’s image abroad.

The convention also emphasised that the seven-point agreement between UML and Nepali Congress, under Chair Oli’s leadership, has established political stability.  In 2020, Nepal triggered a border row by issuing a political map that showed Kalapani, Limpiyadhura and Lipulekh as part of the country. India had strongly trashed the claims.

External Affairs Ministry spokesperson Randhir Jaiswal recently said that India's position has been consistent and clear. "Border trade between India and China through Lipulekh pass had commenced in 1954 and has been going on for decades," he added.

Jaiswal said the trade had been disrupted in recent years due to the COVID-19 pandemic and other developments, and both sides have now agreed to resume it.

With inputs from PTI