Asian Journal of Research in Social Sciences and Humanities
Year : 2018, Volume : 8, Issue : 5
First page : ( 50) Last page : ( 67)
Online ISSN : 2249-7315.
Article DOI : 10.5958/2249-7315.2018.00080.1

Trade Embargos as a Geopolitical Tool: A Case of Nepal-India Trade Relations

Chand Deepjyoti

Ph. D. Candidate, Faculty of Political Science and International Studies, University of Warsaw, Polan

Online published on 31 May, 2018.

Abstract

As interdependence grows, economic issues are increasingly political in their nature and impact, and political issues are increasingly economic. The interdependence is acute in issues that relate to international trade, and especially in the case of landlocked countries. Nepal is one such country between India and China, whose economy depends on the trade relation with its neighbouring countries. Two third of the Nepalese trade depends on India. The paper presents a summary of Nepal-India trade cooperation primarily the Nepalese dependence in trade and transit route to India and its effects. The paper presents an overview of the trade pattern between the two countries and focuses on the trade embargoes by India. The paper analyses the reason behind these embargoes and how the situations have been resolved. The embargoes imposed by India in Nepal seem to be more political in nature and their impacts both political and economic. The Indian embargoes in Nepal follow an objective of compliance, deterrence and subversion. By analysing Indian state's pursuance of trade embargo against Nepal, the paper reaffirms that landlocked nations such as Nepal are susceptible to manipulation by geopolitical threats since neighbouring countries adjust trade ties or use trade ties to fulfil their political, security and economic interests.

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Keywords

Nepal-India trade relation, trade embargo, interdependence, landlocked countries, Nepal blockade.

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