Nepal’s ruling Communist Party of Nepal–Unified Marxist Leninist (CPN-UML) has openly opposed the recent India-China agreement to resume border trade through the Lipulekh pass, calling on both countries to withdraw from the arrangement. The party has reiterated Nepal’s longstanding territorial claim over Lipulekh, Kalapani, and Limpiyadhura, areas it says rightfully belong to Nepal on the basis of being east of the Kali River. India, however, has consistently rejected Nepal’s claim, dismissing it as “neither justified nor based on historical facts and evidence.”
The issue was formally raised in a 28-point contemporary proposal adopted at the party’s second national convention, held in Lalitpur’s Godavari Municipality from September 5–7 under the leadership of Prime Minister and UML Chairman K. P. Sharma Oli. Within this proposal, Oli’s firm objection to the Lipulekh trade route agreement during his recent visit to China was highlighted, with the party noting that his position helped strengthen Nepal’s international profile. It further emphasized that his diplomatic engagements during the trip, both bilateral and multilateral, enhanced the country’s image abroad and underscored Nepal’s sovereign rights.
The UML resolution urged Nepal’s government to pursue high-level diplomatic measures to safeguard national interests while pressing India and China to retract their Lipulekh trade deal. It also underscored that the seven-point understanding reached between UML and the Nepali Congress under Oli’s leadership has been instrumental in creating political stability at home.
The Lipulekh dispute has been a longstanding flashpoint between Nepal and India, particularly since 2020 when Nepal issued a revised political map that included Kalapani, Limpiyadhura, and Lipulekh within its territory, triggering a sharp rebuke from New Delhi.
Responding to the renewed criticism, Indian External Affairs Ministry spokesperson Randhir Jaiswal reiterated that India’s position remains “consistent and clear.” He explained that border trade between India and China through Lipulekh had been established as far back as 1954 and has continued for decades, only facing interruptions in recent years due to the COVID-19 pandemic and other factors. With the new agreement, India and China have decided to resume the trade that had long been in place.
This latest development reflects the enduring sensitivity of the Lipulekh issue in Nepal’s domestic politics, as well as the complex triangular dynamics among India, China, and Nepal.
