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Canada Nepal diplomatic relationship was first established in January 18, 1965.  Nepal established its residential embassy in Canada in October 1st, 2009. In Nepal, Canadian government undertakes all the foreign Affairs and diplomatic bilateral relationship via Canadian High commission, New Delhi. The Canadian Cooperation Office (CCO), Kathmandu represents the Canadian High commissioner in Nepal which supports the Canadian Embassy to Nepal.

The CCO was established in 1987 which offers all the services of Canadian government, including all the diplomatic function, foreign affairs, trade and development and other bilateral agendas.

Canada-Nepal Development Assistance:

Canada started its development aid program to Nepal in 1958 by aiding one-time food aid project. This humanitarian act was conducted by Canadian International Development Agency (CIDA).  However, the bilateral development assistance program was started formally by Canada in 1970 by providing support to development of civil aviation in Nepal. The aid program provided seven twin Otters, airport security equipment and assist in airport development and human resource development of thethen Royal Nepal Airlines Corporation. After the commencement of formal bilateral relationship and development aid program, CIDA has been conducting various development projects in Nepal. In eighties, CIDA expand the assistance program in the areas of social sectors like healthcare, education, geographical survey, poverty, gender and agriculture and food security.  CIDA is based on millennium development goals and has been globally operating its development assistance program. Nepal, being one of the key areas of CIDA’s assistance, CIDA has been continuing its support and aid under following four key areas; Social Development, Economic well being, Environmental Sustainability and good governance.  Under these key areas, CIDA helps boosting livelihoods in community level by emphasizing on poverty reduction, healthcare, energy planning, education and food.

CIDA has been a major supporter and contributor of the Office of the UN High Commissioner for Human Rights (OHCHR) which is operating in Nepal since 2005. Canada also provides support to Nepal through multilateral aid to world Food program, United Nations Development Program, UNICEF, OHCHR, World Bank, Asian Development Bank and many Nepalese and Canadian NGOs. All these support is provided through CIDA’s multilateral branch.

Canada-Nepal Trade

Many Nepali products like pasminas, carpets and handicrafts have good demand in Canadian market. But because of the difficult geography and trade policies of both the countries, there still exist trade imbalance between Canada and Nepal. Nepali readymade garment is one major export of Nepal to Canada.

Canada has been supporting environmental sustainability and Energy sources planning, so here is a possible investment opportunity in Nepal’s natural resources mobilization. No big investment from Canada is witness in the past but with Nepal’s commitment to peace process and restructured development, there are big possibilities for Canadian investment.

The number of Canadian tourist and visitor in Nepal has also been recorded to increase significantly over the past years. Many Nepalese also choose Canada as better destination for work and study. Canada Nepal has a long and stable bilateral relationship. Nepali though is not in top 20 countries where 80% of Canadian aid flows, still Canada has been prioritizing Nepal’s development and peace process by different means of support and good will.

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