Nepal and US Strengthen Economic Ties During Special Envoy Gor’s Visit

Gor, who is also the US Ambassador to India, arrived in Kathmandu on Thursday evening and held meetings with Nepal's government ministers on Friday. He is the highest-ranking US government official to visit Nepal since the new government led by Prime Minister Balendra Shah was formed on March 27.

During the meetings, both sides said they discussed promoting economic cooperation between the two nations, besides a wide range of issues related to bilateral relations.

Following the meeting with Finance Minister Wagle, Gor wrote on social media platform X, "Our discussions covered a broad spectrum of shared priorities, with a strong focus on improving the business climate, expanding technology-driven employment opportunities, and unlocking new avenues for economic cooperation that will benefit both our nations."

Lately, the US has shown greater interest in investing in Nepal's technology sector. Starlink, owned by billionaire Elon Musk, has been holding talks with Nepali officials regarding its possible presence in Nepal.

US media service company Netflix is also reportedly eyeing the Nepali market. Nepal is also looking to the US for software exports, given that information and communication technology services have been among Nepal's leading export sectors in recent years.

Nepal's Finance Ministry also said that the two sides discussed economic partnership and US aid to Nepal. Though the US had long been Nepal's largest bilateral donor, India overtook it last fiscal year 2024-25 in terms of aid disbursement. Following the US disbandment of USAID, Nepal is set to lose significant US aid. In May 2022, USAID and the Nepal government signed a five-year Development Objective Agreement (DOAG) with a total planned commitment of US$659 million.

However, the US has continued its ongoing assistance under the Millennium Challenge Corporation (MCC), which has remained controversial in Nepal because of allegations that it could undermine the country's sovereignty. The US has strongly rejected claims that the MCC has any hidden motive in helping Nepal build a high-capacity transmission line and implement road improvement projects through its grant assistance of US$550 million.

The Nepal section of the under-construction Butwal-Gorakhpur Cross-Border Transmission Line between Nepal and India is being built with US assistance under the MCC.

During the meeting between Special Envoy Gor and Foreign Minister Khanal, the two sides also discussed the MCC.

"The two held constructive and productive discussions on deepening bilateral cooperation across several promising domains, with particular emphasis on expanding trade and advancing initiatives under the Millennium Challenge Corporation (MCC)," the US Embassy said in a social media post.

According to Nepal's Foreign Ministry, the two sides discussed further strengthening Nepal-US relations, with an emphasis on promoting investment and trade.

Besides meeting political leaders, the US special envoy is also scheduled to meet members of the Nepali business community, according to the US Embassy. There has been no indication from Nepali officials about whether he will also meet Prime Minister Balendra Shah, who has been avoiding meetings with foreign diplomats while following strict protocol, unlike previous prime ministers of Nepal.

Gor is known as a close ally of Trump. Besides entrusting him with the responsibility of serving as Ambassador to India, Trump has also appointed him as the special envoy for South and Central Asia. Gor arrived in Kathmandu just 10 days after US Secretary of State for South and Central Asian Affairs Samir Paul Kapur visited the country on April 20. Nepal has recently seen a flurry of visits by top officials from major countries, with the US at the forefront of the initiative.

While Kapur was visiting Nepal, Cao Jing, Deputy Director-General at the Department of Asian Affairs of China's Ministry of Foreign Affairs, also visited the country and held talks with senior Nepali officials. Indian Foreign Secretary Vikram Misri is also likely to visit Nepal in mid-May, officials at Nepal's Foreign Ministry said. India, China, and the US are the three major powers with significant influence in Nepal.

- IANS