Bilateral Relations:
Nepal and Canada established diplomatic relations on 18 January 1965 and have enjoyed longstanding friendly relations ever since. Nepal opened its Embassy in Ottawa on 1 October 2009. Nepal has also established Honorary Consulates in Calgary, Montreal, Toronto and Victoria. High Commission of Canada in India is concurrently accredited to Nepal. Canada has its Honorary Consulate in Kathmandu.
The year 2025 marks the 60th anniversary of establishment of Nepal-Canada diplomatic relations.
Nepal-Canada Friendship Group has also been formed in the Federal Parliament of Nepal.
Exchange of Visits
Nepal-Canada relations have been nurtured and cemented by the exchange of high-level visits. Such visits include the visit of the heads of the States and government and other high-level dignitaries. Recently, Minister for Foreign Affairs Hon. Dr. Arzu Rana Deuba paid an official visit to Canada from 17-21 September 2024. It was the first visit of a Nepali Foreign Minister to Canada. From Canadian side, Speaker of the Senate of Canada Mr. George J. Furey, Q.C. paid an official visit to Nepal, leading a delegation of the Canadian Senators, on 10-11 February 2020.
Foreign Minister’s visit to Canada
Foreign Minister Hon. Dr. Arzu Rana Deuba paid an official visit to Canada from 17-21 September 2024 at the invitation of the Minister of Foreign Affairs of Canada H.E. Mélanie Joly. During the visit, she held a bilateral meeting with Minister of Foreign Affairs of Canada H.E. Mélanie Joly at latter’s office in Global Affairs Canada in Ottawa on 18 September 2024. The Minister also held a meeting with the Chair of Canada-Nepal Parliamentary Friendship Group and Member of Parliament Hon. Sonia Sidhu in Ottawa on 18 September 2024.
Foreign Minister Hon. Dr. Arzu Rana Deuba also participated in the Women Foreign Ministers’ Meeting which was hosted jointly by Canadian Foreign Minister Ms. Mélanie Joly and Jamaican Foreign Affairs and Foreign Trade Minister Kamina Johnson Smith in Toronto on 19-20 September 2024. Minister Dr. Deuba also held a bilateral meeting with the Foreign Minister of Romania Ms. Luminița-Teodora Odobescu on the sidelines.
Bilateral Consultation Mechanism
A Memorandum of Understanding on the establishment of Bilateral Consultation Mechanism (BCM) between the foreign ministries of the two countries was signed on 24 September 2018 by the Prime Minister of Nepal Rt. Hon. Mr. KP Sharma Oli and the Prime Minister of Canada H. E. Mr. Justin Trudeau. The mechanism has institutionalized regular dialogue on matters of mutual interest between the Foreign Ministries of the two countries. So far, three meetings of the BCM have already been held.
Development Cooperation
Canada has been Nepal’s development partner since 1952 when it joined the Colombo Plan. The official bilateral assistance commenced in 1970 through the Canadian International Development Agency (CIDA). Canadian cooperation primarily contributed to strengthening the aviation sector and focused on such other areas as hydropower, energy, wastewater management, irrigation, infrastructure development, rural development, transportation, telecommunications, health, education, geographical survey, agriculture, poverty alleviation, food security and human rights.
Canada has also generously extended humanitarian support to Nepal in difficult times such as post-natural disasters and calamities, including during the 2015 earthquake, the 2017 floods and landslides, and the COVID-19 pandemic.
Despite the end of Canada’s bilateral programme, Canada increased its funding to Nepal via multilateral and partnership channels since 2013.
Trade
Bilateral trade between Nepal and Canda has remained modest. However, there is a tremendous potential of further trade expansion between the two countries. The duty-free market access available for the Nepali products in Canada can be utilized by Nepali exporters.
The business organizations and entrepreneurs from both countries have also taken important steps to foster bilateral trade.
Nepal’s major exports to Canada include carpet, knotted wool, woollen products, dog or cat food, felt, made up articles, garments, essential oil, tea, coffee and spices. Imports to Nepal from Canada include oilseeds, dried peas, lentils, aircrafts and parts, soybeans, chickpeas, paper and machines.
The following table reflects the recent bilateral trade (USD/thousand)
|
S.N |
Year |
Import |
Export |
|
1 |
2020 |
137,178 |
5,641 |
|
2 |
2021 |
105,929 |
8009 |
|
3 |
2022 |
59,130 |
10,173 |
Source: www.trademap.org
Investment
As of FY 2022/23, Rs. 3.65 billion FDI has been received from Canada, which is invested in 52 different companies and have generated 2,455 jobs. (Source: Department of Industry, Government of Nepal)
Canada’s FDI Stock in Nepal as of mid-July 2022 (Rs. Million) is as follows:
|
Rank |
Paid Up |
Reserves |
Loans |
Total |
Share in Total (%) |
|
28 |
212.3 |
-49.5 |
- |
162.8 |
0.1 |
(Source: NRB)
Tourism
Nepal has been an attractive destination for Canadian tourists and there exists a high potential to further promote Nepal’s tourism in Canada.
Despite geographical distance, the number of tourists visiting Nepal from Canada has always been on the rise. The tourism sector is regaining momentum in the post-COVID.
Arrivals in Nepal from Canada in recent years are as follows:
|
Year |
2019 |
2020 |
2021 |
2022 |
2023 |
|
Tourist Arrival |
17,102 |
3,102 |
2,438 |
9,755 |
14,690 |
(Source: Nepal Tourism Board; Department of Immigration)
Parliamentary Friendship Group
To further strengthen parliamentary relations between the two countries, Parliamentary Friendship Groups have been formed in the parliaments of Nepal and Canada.
People to People Relations
The relations between Nepal and Canada have been further strengthened by growing people-to-people contacts. The presence of large number of Non-Resident Nepali in Canada remains a strong bridge between the two countries. While playing an important role in contributing to Nepal’s development efforts, they have been enriching the multicultural heritage of Canada through Nepali language, literature, art, music, culture and cuisines.
The Non-Resident Nepali Association (NRNA), Nepal-Canada Friendship and Cultural Association (NCFCA), Canada-Nepal Friendship and Cultural Society (CANFCS) and many other organizations and individuals have also played important roles in further consolidating relations between the two countries and peoples.
Nepali Students in Canada
Canada has been one of the popular study destinations for Nepali students in recent years. In 2022, around 6,000 Nepali students went to Canada while the number rose to around 10,000 in 2023. Nepali students are more concentrated in Toronto, Ontario region.
Europe and Americas Division
Ministry of Foreign Affairs
As of January 2025
