LHASA - China and
India agreed on June 18 to reopen trade on their
border crossing at the Nathu La Pass on July 6,
after 44 years' closure. Officials from both sides
ended the discussion on the issue in Lhasa,
capital of the Tibet Autonomous Region,
and signed the agreed minutes on June 18.
The Nathu La Pass is 4,545 meters above
sea level, 460 kilometers away from Lhasa and 550
kilometers from the Indian coastal city of
Calcutta or Kolkata. The pass used to be an
important trade passage
between China and India, and the reopening of the
pass is expected to give a major boost to
bilateral trade between the world's two most
populous countries.
Trade in this area
accounted for 80% of the total border trade volume
between China and India in the early 1900s.
Trading through the pass was suspended in 1962
after border conflicts. "The reopening of [the]
border trade will help end economic isolation in
this area and play a key role in boosting [the]
market economy there," said Hao Peng, vice
chairman of the autonomous region. "It will also
boost the transportation, construction and service
industries, paving the way for a major trade route
that connects China and south Asia," he added.
"The resumption of [the] border trade is a
great historic event, not only for enlarging
trade, but also for greater relations between ...
two great countries," said Dr Christy Fernandez,
additional secretary of the Indian Department of
Commerce.
The resumption of border trade
reflects the improved ties between China and
India, said Professor Liu Jiangyong with the
institute of international studies at
Beijing-based Qinghua University. He said that
China and India have been exploring avenues of
mutual beneficial cooperation in the economic and
trade fields, adding that the accord on the
guidelines for border demarcation signed in 2005
by the two countries created a peaceful
environment.
Both sides marked 2006 as the
year of Sino-Indian friendship. More than 5,000
border residents came to Yadong county, where the
Nathu La Pass is located, every year for a trade
of 3.6 million yuan (US$449,888), although the
trading port in Yadong did not officially open,
statistics from the county show.
China and
India signed a memorandum of understanding on the
resumption of border trade at the Nathu La Pass in
2004. The Chinese State Council approved the plan
on the construction of border trade markets in
Yadong in the ensuing year. "The reopening of the
Nathu La Pass is a key move in strengthening
economic and trade ties, which will also enhance
mutual political trust," Liu said.
China
and India recorded US$18.73 billion in bilateral
trade volume in 2005, up 37.5% from the previous
year, according to the Chinese Ministry of
Commerce. The volume is expected to exceed $20
billion this year.
Currently China and
India trade mostly by sea. The Tibet Autonomous
Region imports from and exports to India via Tianjin, a port city
thousands of kilometers away.
Tibet is
expected to benefit much from the resumption of
border trade at the Nathu La Pass, Hao Peng said.
"If only 10% of Sino-Indian trade goes through the
pass it means at least more than $1 billion a
year." Last year, the foreign trade volume of
Tibet was only $200 million.
Tibet has
achieved rapid economic growth, with the annual
GDP growth above 12% over the past five years,
higher than the country's average, said Tibet
Autonomous Region Chairman Qiangba Puncog on
Saturday while meeting the Indian commercial and
trade delegation headed by Christy Fernandez.
Qiangba said China and India's friendship
has a long history and the economic and trade
cooperation between the two nations has been close
in recent years. He said the Chinese government
attaches great importance to bilateral economic
and trade cooperation.
With the reopening
of Nathu La Pass, iron ore and livestock products
from India and wool, herbs and electric appliances
from China can be transported into the other
country through the short cut, Hao said.
