Nepal-US Relations

Nepal-US Relations

Diplomatic Relations

Nepal and the United States of America (US) established diplomatic relations on 25 April 1947. The US is the second country, after the United Kingdom, with which Nepal established diplomatic ties. Nepal established its Embassy in Washington D.C. in February 1958. Subsequently, the US government established its Embassy in Kathmandu in August 1959. To further strengthen diplomatic and consular engagements, Nepal established Consulates General in New York in October 2014, and more recently in San Francisco and Dallas in July 2025. In addition, Nepal has appointed Honorary Consuls and Consul Generals in various US cities. Nepal established the Permanent Mission of Nepal to the United Nations in New York in 1956, shortly after becoming a member of the United Nations on 14 December 1955.

Bilateral Consultation Mechanism (BCM)

A Memorandum of Understanding to establish Bilateral Consultation Mechanism (BCM) between the Ministry of Foreign Affairs of Nepal and the Department of State of the United States of America was signed in September 2024. The BCM envisions regular and periodic consultations between the two sides at the level of senior officials of the Ministry of Foreign Affairs and the Department of State to review the overall state of bilateral relations and exchange views on the issues of mutual interest. The mechanism is expected to further strengthen cooperation in areas such as trade, investment, development partnership, tourism, and people-to-people exchanges.

Exchange of Visits

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

From Nepal side                                                           

• Foreign Minister Mr. N P Saud paid an official visit to the US in November 2023. He had a bilateral meeting with the Secretary of State Mr. Antony Blinken during the visit.
• Foreign Minister Mr. Pradeep Kumar Gyawali visited the US in 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.
• Mr. K.P. Sharma Oli, in his capacity as Deputy Prime Minister and Minister for Foreign Affairs, visited the US in September 2006 and met with the Secretary of State Dr. Condoleezza Rice.
• Prime Minister Mr. Sher Bahadur Deuba visited the US in 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 in August 2024.
• Secretary of State Gen. Colin Powell paid a two-day official visit to Nepal in 2002.
• Former US President Jimmy Carter visited Nepal in 2007, 2008, and 2013, as the Founder of the Carter Center.
• US First Lady Hillary R Clinton visited Nepal in 1995.
• Vice President Mr. Spiro Agnew visited Nepal in January 1970.

Development Cooperation

The US is one of the first countries to extend development assistance to Nepal. The US development cooperation in Nepal dates back to 1951 with Nepal and the US signing a cooperation agreement under the US Point Four Program.

Various sectors such as transport, communication, public health, family planning, malaria eradication, agriculture, forestry, energy etc. have benefitted from the US development assistance. Similarly, there has been considerable US support and cooperation in the institutionalization of peace and democracy as well as in protection and promotion of human rights in Nepal.

Assistance in Post-earthquake 2015 Reconstruction

The United States extended its generous support in the areas of post-quake reconstruction. A number of cultural heritages and public infrastructures like schools and hospitals were either renovated or reconstructed with the US support.

US Assistance during COVID-19

The US government extended significant support to Nepal during COVID pandemic to help Nepal tackle spread of COVID-19. These supports were in the form of vaccines, technical and human resource support. Necessary equipment and supplies were also provided through USAID and Department of Defence.

Millennium Challenge Corporation (MCC)

In September 2017, the Government of Nepal signed a $500 million compact with Millennium Challenge Corporation (MCC) of the US government.  The compact aims to improve 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 was injected into the compact by the US Government in November 2025.

Trade/Investment

The US is one of the important trading partners of Nepal. Nepal primarily exports carpets, dog foods, felt products, glass etc. to the United States. Similarly, major imports from the US are agricultural products, aircraft parts, optics and medical instruments, and machinery, etc. Trade between Nepal and the US is heavily in favor of the United States.

Nepal-USA Trade in figures:

NRs. ‘000

(Source: Department of Customs, Nepal)

Nepal Trade Preference Program (NTPP) under Trade Facilitation and Trade Enforcement Act 2015 of USA provided duty and quota free access for 77 Nepali products to US market from 2016 to 2025.

Investment:

The US is one of the top source countries of Foreign Direct Investment (FDI) in Nepal creating thousands of jobs. According to the ‘Foreign Investment in Nepal 2024’ report published by the Department of Industries of the Government of Nepal, US’ investment in Nepal accounted to NRs. 17.80 billion approx. as of June 2024. Within the fiscal year 2080/81 (July 2023 - June 2024), investment of NRs. 1.52 billion approx. flowed in from the United States as FDI. The US government also publishes ‘Nepal Investment Climate Statement’ every year.

IT Industries:

Lately, Nepal is developing as a potential base for IT service centers for US start-ups and tech companies, primarily owned by Nepalese-American entrepreneurs. Various US tech companies have established their Kathmandu offices over the last few years. Most recently, SecurityPal and Veel App launched their Kathmandu offices in February 2023 and December 2025 respectively.

Parliamentary engagement

With a view to further deepening and expanding relations between Nepal and the US through parliamentary front, a Nepal-US Parliamentary Friendship Group was established in the Parliament of Nepal. The group aims to strengthen mutual understanding, promote dialogue, and enhance cooperation between the legislatures of the two countries.

The Nepal-US Parliamentary Friendship Group was reconstituted in the Federal Parliament of Nepal in November 2018 and December 2024 following the formation of the federal parliament. Generally, the Parliamentary Friendship Group is reconstituted with the formation of new parliament.

Education, Culture, people to people contacts

Currently, over 400,000 Nepalese, including a significant number of naturalised US citizens of Nepalese origin, are living in the United States. This number mainly includes students, doctors, engineers, IT professionals, and entrepreneurs. The Nepalese diaspora in the US is growing day by day, and is the main conduit of Nepal-US cultural relations.

Likewise, the Peace Corps Volunteers who have been contributing to the socio-economic development of remote villages of Nepal since 1962 have become the linkages for cultural exchange and people-to-people contact between Nepal and the US.

Tourism

The US is one of the largest sources of tourists in Nepal. The number of visitors from the US has been increasing each year.

US Tourists Arrival figures in the past three years:

Source: Nepal Tourism Statistics, MOCTCA

North and South Americas Division

Ministry of Foreign Affairs

Singhadurbar, Kathmandu

March, 2026