China's tariff free treatment to Nepali items to the Chinese market will help to promote China- Nepal trade, Nepali experts said in Kathmandu Monday.

As per the letter signed between the two countries during the visit of Chinese State Councilor Tang Jiaxuan last week, China had agreed to provide duty free treatment to the majority Nepalese items to the Chinese market.

"The signing of the Letter of Intent on maintaining zero tariff in customs duty between China and Nepal has opened new avenues for the promotion of bilateral business and lessen trade deficit on Nepal's side," Prithivi Raj Ligal, former vice-chairman of National Planning Commission of Nepal, said at a face-to-face function.

The agreement will obviously help minimize the losses that Nepal had been incurring in trade with China and also will be instrumental in paving a new way to fortify Nepal's economy, Ligal said.

The agreement had formally opened a door for better business prospects, said Chandi Raj Dhakal, chairman of Federation of Nepal Chamber of Commerce and Industries, the largest non-government federal organization of the country.

"Despite poor economic status of the country, the agreement will be very fruitful in enhancing bilateral ties," Dhakal added.

According to Shankar Sharma, vice-chairman of National Planning Commission, Nepal currently bore an accumulated loss of nearly 12. 5 billion (178.57 US dollars) on bilateral trade with China annually.

Source: Xinhua