Mumbai: India and China will resume border trade
through the strategic Nathu La Pass from 6 July, 2006,
44 years after it was suspended in the wake of
China''s aggression in 1962. The agreement, signed late
last night in Lhasa, is expected to boost the economies
of the land-locked areas of the Himalayan region. Besides,
the reopening of the ancient trade route is expected
to facilitate increased bilateral trade between India
and China.
The
Nathu La Pass, which is 4,545 meters above sea level,
is 460km away from Lhasa and 550km from Calcutta. The
pass, the Silk Route as it was once called, used to
be an important trade passage between India and China
going up to Central Asia.
The
agreement allows free trade among residents living on
either side of the border areas in nearly 30 items mentioned
in the border trade agreements of 1991, 1992 and 2003.
These include agricultural implements, food grains,
blankets, agro-chemicals, dry fruits, beverages and
canned food.
Besides
its economic benefits, the resumption of border trade
would also give greater momentum to improved relations
between the two countries. The agreement to reopen the
ancient Silk Route is the latest sign of warming relations
between the world''s two most populous countries.
Increased
trade would bring in benefits of market economy to the
land-locked region. It will also give a big boost to
the service sector, paving way to better transportation,
construction and other service industries.
With
the reopening of the trade point, iron ore and livestock
products from India and wool, herbs and electric appliances
from China could be transported over the narrow, mountainous
border road, Chinese officials pointed out.
Bilateral
trade between the two countries rose to $18.7 billion
in 2005, up 37.5 per cent from the previous year, according
to Chinese government data. The volume is expected to
exceed $20 billion this year.
It
is, however, not clear if the increased trade would
extend to the flow of people across the border.
Meanwhile,
the Sikkim government has sought approval from the Centre
for a high way from Nathula to western India that could
further boost trade. Although China now recognises Sikkim
as part of India, the state government is yet to get
approval from New Delhi for the highway.
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