Nepal-US Relations

Diplomatic Relations

Nepal and the United States of America (US) established the diplomatic relations on 25 April 1947. The US is the second country, after the UK, with which Nepal established diplomatic relations. Nepal established its Embassy in Washington D.C. on 3 February 1958. On 6 August 1959, the Embassy of the United States of America in Kathmandu was opened. Nepal also established its Consulate General in New York city on 9 October 2014. Likewise, Nepal has also appointed honorary consuls and consuls general in various US cities.

Exchange of Visits

There are number of high-level exchanges between Nepal and the US which has helped further strengthen the bilateral relations. Some latest and prominent visits between Nepal and the US are as follows:

From Nepal side

• Foreign Minister Mr. N P Saud paid an official visit to the US from 30 October to 4 November 2023. He had a bilateral meeting with the Secretary of State Mr. Antony Blinken on 30 October 2023.
• Foreign Minister Mr. Pradeep Kumar Gyawali visited the US on 18-20 December 2018 and held bilateral official meeting with Secretary of State Mr. Michael Pompeo.
• Foreign Minister late Sahana Pradhan visited the US in September 2007.
• Rt. Hon. Mr. K.P. Sharma Oli, in his capacity as Deputy Prime Minister and Minister for Foreign Affairs, the US in September 2006 and met with the Secretary of State Dr. Condoleezza Rice.
• Prime Minister Mr. Sher Bahadur Deuba visited the US from 6 to 11 May 2002.
• King Birendra and Queen Aishwarya visited the US in December 1983.
• King Mahendra visited the US in November 1967 and April 1960.

From the US side

• Deputy Secretary of State for Management and Resources of the United States Mr. Richard R. Verma visited Nepal on 16 August 2024.
• USAID Administrator Samantha Power visited Nepal between 7-9 February 2023.
• Secretary of State Gen. Colin Powell paid a two-day official visit to Nepal in 2002.
• Former US President and a Nobel laureate Jimmy Carter visited Nepal in 2007, 2008, and 2013, in capacity of Founder of the Carter Center.
• US First Lady Hillary Clinton visited Nepal in 1995.
• Vice President Mr. Spiro Agnew visited Nepal in January 1970.

Development Cooperation 

The USA is one of the first countries to extend development assistance to Nepal. The development cooperation dates back to 1951(by signing an agreement) when it supported Nepal with its Point Four Program. USAID Nepal is the development assistance arm of the US Mission to Nepal. Nepal has greatly benefited from the financial and technical assistance extended by the United States to help drive Nepal’s socio-economic development.

Various sectors such as transport, communication, public health, family planning, malaria eradication, agriculture, forestry, energy etc. have come to benefit from the development assistance from USA spanning more than seven decades. The United States cooperation is also geared towards the institutionalization of peace and democracy as well as protection and promotion of human rights in accordance with its country strategy document.

USAID cooperation package of $659 million was signed in 2022 for five years (2022-2027) with a significant amount directed towards expanding access to quality education for children, marginalized youth and early grade students.

Assistance in Reconstruction post-earthquake -2015

The United States has provided over $190 million for earthquake relief, recovery, and reconstruction. 

The US had lent generous support in the area of post-quake reconstruction. Heritages and public infrastructures like schools and hospitals have been reconstructed with US support.

Some examples of US-assisted projects are: Gaddi Baithak in Hanumandhoka, Barhabise Health Care Center, support for reconstruction of schools and temples, and Kaiser Mahal.

US Assistance during Covid-19

A total of $122 million was supported to Nepal during Covid to help Nepal tackle spread of Covid-19. These supports were in forms of vaccines, technical and human resource support and equipment and supplies for Nepal’s COVID-19 response through USAID and Department of Defense.

Millennium Challenge Corporation

In September 2017, the U.S. Government’s Millennium Challenge Corporation (MCC) signed a $500 million compact with the Government of Nepal. The compact aims to maintain road quality, increase the availability and reliability of electricity, and facilitate cross-border electricity trade between Nepal and India—helping to spur investments, accelerate economic growth, and reduce poverty.

A $197 million contribution from the Government of Nepal in support of the compact—the largest up-front partner country contribution in MCC’s history—will enable even greater impact and benefits for the Nepali people.

An additional amount of $50 million has been approved in December 2024 by the MCC Board.

Trade/Investment

The US is one of the important trading partners of Nepal. It is also the biggest source of hard currency for Nepal primarily from the export of carpets, dog foods, felt products, glass etc. as well as from tourist incomes.

Memorandum of Understanding between the United States Patent and Trademark Office (USPTO) and The Ministry of Industry, Commerce and Supplies of the Government of Nepal on Bilateral Cooperation in Intellectual Property was signed on March 18, 2024 (2080/12/05).

Trade Facilitation and trade enforcement Act 2015 of USA provides duty and quota free access to US market for 77 Nepali products which will expire on 31 December 2025.

Nepal-USA Trade:

Value in NRs. ‘000

(Source: Department of Customs, Nepal)

Investment: The US is one of the top source countries of FDI in Nepal creating thousands of jobs. The US’s FDI stock in Nepal as of mid-July 2022 (Rs. Million) is as follows:

(Source: NRB)

Establishment of BCM:

A Memorandum of Understanding was signed between the Ministry of Foreign Affairs of Nepal and the Department of State of the United States of America on the establishment of a Bilateral Consultation Mechanism (BCM) on 30 September 2024 at the US Department of State, Washington DC. Minister for Foreign Affairs of Nepal Dr. Arzu Rana Deuba and Acting Under Secretary of State of the United States Mr. John Bass signed the MOU from their respective sides. The Foreign Minister was on a visit to the US to attend the 79^th United Nations General Assembly.

Parliamentary engagement

The Bipartisan Congressional Nepal caucus was registered on 16 June 2023 as the Congressional Member Organization (CMO) of the US House of Representatives for the 118th Congress. Currently, the caucus has 16 members, with Rep. Joe Neguse and Rep. Mike Carey as Co-chairs.

Likewise, Nepal-US Parliamentary Friendship Group has been formed in the Federal Parliament of Nepal in December 2024.

Education, Culture, people to people contacts

The US has become one of the most popular destinations for higher education for Nepali Students in recent years. The presence of over 4,00,000 Nepalis in the US, including the 2,50,000 Naturalized US citizens of Nepali origin, is the main conduit of Nepal-US cultural relations. Nepal is one of the leading places of origin for international students coming to the United States.

The Peace Corps Volunteers, beginning 1962, started to arrive in Nepal when Nepal had initiated its planned development and had shortages of technical manpower. In recent years, Peace Corps Volunteers are more focused in the areas of education and food security.

Tourism

The US is one of the largest sources of visitors in Nepal. The number of visitors has been increasing each year, except for the year 2015, 2020-21 for the reason of the earthquakes and COVID respectively. The number of tourist arrival from the US to Nepal in the past years is as follows:

Source: Nepal Tourism Statistics, MOCIT

Europe and the Americas Division

Ministry of Foreign Affairs

As of January 2025