ABSTRACT
The chapter examines the historical dynamics of Nepal–U.S. relationship from the Cold War to the contemporary era driven by the U.S. Indo-Pacific Strategy, with the aim of strengthening the Nepal–U.S. relationship in the 21st-century world. Historically, the U.S. has remained a trusted, valuable-aid donor and distant neighbour for Nepal. However, within the changing geopolitical context, the U.S. has significantly increased its interests in Nepal, considering its geostrategic location. Moreover, granting of $500 million dollar Millennium Challenge Cooperation (MCC) Compact and naming Nepal as a country under the ‘State Partnership Program' in its Indo-Pacific Strategy Report (IPSR) have spurred the political debate in Nepal. Questioned have been asked regarding Nepal's traditional non-alignment and independent conduction of its foreign policy.
Within this context, the chapter reviews this historical dynamics and the implication on bilateral relations in the evolving IPS, and it argues that while Nepal is likely to play a minimum role in the overarching U.S.-led Indo-Pacific strategy, it may perhaps not postulate any strategy of its own with regard to its bearings on IPS. However, it remains in Nepal's best interest to engage with the U.S. through continued cooperation in all areas and remain committed toward its support for Free and Open Indo-Pacific (FOIP). Furthermore, the chapter proposes that Nepal should adopt multialignment in its foreign policy to navigate through the evolving nature of international politics and manage the interests of great powers, including the U.S.
