Nepal and Canada established diplomatic relations on January 18, 1965. The longstanding Nepal Canada relations ever since the establishment of diplomatic relations are based on sovereign equality, mutual respect, and goodwill towards each other.
While Canada and Nepal have longstanding bilateral ties, trade between the two countries remain modest. As per the information of Trade and Export Promotion Centre, Ministry of Commerce and Supplies, Nepal, the value of Nepal's exports to Canada in 2014-15 totalled US$ 17.05 million and Nepal's imports from Canada totalled USD 94.36 million. Nepal’s major exports to Canada include carpets, garment and apparels, tea/coffee, articles of jewellery and paintings and drawings etc. Canada’s main exports to Nepal include aerospace, machineries, paper and paper board, dried peas and vegetables, pipe drivers and pipe extractor, optical instruments and appliances etc.
"Sectors of particular interest to Canada are power and energy equipment and services, wastewater management and technologies, irrigation equipment and engineering, infrastructure, transportation (especially aircraft and parts) and telecommunications equipment. The Canadian High Commission in New Delhi has organized trade missions to Nepal to promote trade between Canada and Nepal. In May 2013, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and Indo-Canadian Business Chamber (ICBC) inked a Memorandum of Understanding to establish the Canada-Nepal Business Executive Committee (CNBEC) with an objective to encourage and promote the growth of business ties between Canada and Nepal through increased interaction between Nepalese companies and Canadian companies based in India".
Source: Global Affairs Canada website
Canada remained Nepal's traditional development partner for over four decades after the establishment of diplomatic relations until 2013. Canadian support to Nepal was channeled through Canadian International Development Agency (CIDA). From 1968, CIDA supported large programmes and small projects in various areas of development. These included the national airlines, water and energy secretariats, land survey departments, local community, health workers, farmer cooperatives, human rights etc.
"In 2013, Canada closed its Canadian Cooperation Office in Kathmandu as part of transition in the relationship from an aid focus to a trade and investment focus".
Source: Global Affairs Canada website
The Government of Canada responded quickly in the rescue and relief needs following the devastating earthquake of April 25, 2015 and several powerful aftershocks. Within a few days of the devastation, the Government of Canada provided $10 million in humanitarian assistance through its channel to address the most pressing needs of the people of the earthquake-hit areas. The Government of Canada also deployed Global Affairs Canada’s emergency stockpiles, Canadian Red Cross Emergency Response Unit, and Canadian Forces’ Disaster Assistance Response Team (DART).
The Canadian public at large also showed great solidarity and support to the victims of the earthquake. On April 27, 2015, the Government of Canada launched a Nepal Earthquake Relief Fund to engage the Canadian public and also announced a commitment to match the fund raised by the public.
"The Government of Canada has provided a total of $27 million in humanitarian assistance funding in response to the crisis, which has been directed to experienced and trusted humanitarian partners, including UN humanitarian agencies such as the World Food Programme, the United Nations Children’s Fund (UNICEF), the Office for the Coordination of Humanitarian Affairs (OCHA), the Food and Agriculture Organization of the UN (FAO), Canadian and international non-governmental organizations (NGOs) and the International Federation of Red Cross and Red Crescent Societies (IFRC)."
Source: A Release by Global Affairs Canada on 25 April 2016.
Nepal established its Embassy in Canada in 2009, and has Honorary Consulates in Calgary, Montreal Toronto and Victoria. Embassy of Nepal in Washington DC, USA was concurrently accredited to Canada before 2009. Dr. Bhoj Raj Ghimire served as the first Ambassador of Nepal to Canada (2009-2013). High Commission of Canada in New Delhi, India, is concurrently accredited to Nepal. Canada has its Honorary Consulate in Kathmandu.