Remittance is expatriates send money to Nepal from abroad, and this amount is increased during recent years from European countries like Germany. In 1975, Nepal established formal diplomatic relations with the then-EC. Cooperation on development with the European Community began in 1973. In 1992, EC established a technical office in Kathmandu. In Brussels, Nepal constructed a residential embassy. Following the signing of an agreement to this effect on March 13, 2002, in Kathmandu, the European Commission established a Delegation in Nepal. Since December 2009, the European Union (EU) Delegation office has been raised to Ambassadorial status.
What Makes Relationship Between Nepal And Germany Stronger?
Since 1958, Germany and Nepal have had diplomatic relations. Germany collaborates on public and private development policies. Its assistance is primarily focused on improving healthcare, increasing renewable energy, energy efficiency, and encouraging long-term economic development. An overall theme is to support Nepal’s new federal structures by money transfers to Nepal through foreign direct investment (FDI) and remittance.
Since the commencement of the peace and democratization process in 2016, Germany has backed Nepal’s attempts to develop democratic structures. Support for the peace process is another significant aspect of Germany’s involvement in the Country.
What Are The Biggest Export Products To Germany From Nepal?
Germany is a significant market for Nepalese carpets and textiles. Machinery and industrial products are Nepal’s critical imports from Germany. The yearly amount of trade is expected to be over 50,7 million euros in 2020. Since 1986, there has been an investment agreement in existence. On October 2, 2019, Kathmandu hosted the first German-Nepalese Business Forum.
Nepal’s leading export trading partner is Germany, which specializes in carpets and textiles. Machinery and industrial products are Nepal’s critical imports from Germany. Since October 1986, there has been an investment protection agreement in existence. The Nepal-German Chamber of Commerce and Industry (NGCCI) in Kathmandu was founded in 1990 to develop bilateral trade cooperation. Handicraft, silver jewelry, clothes, leather, wooden and bamboo goods, lentils, tea, and essential oils from herb and aromatic plants are exported from Nepal to Germany. Online money transfer to Nepal by Nepalese diaspora is also significant support for the countries economy from Germany. Nepal imports industrial raw materials, chemicals, mechanical equipment and components, electric and electronic goods, cars, and other items from Germany.
The Bottom Line:
Expatriates send money to Nepal online, and exports to Germany are significant sources of foreign reserves to Nepal. And there is a strong and friendly relationship between the two countries.