NEW DELHI, July 6 (KUNA) -- India and China Thursday reopened the Nathu La Pass along the Himalayas for border trade through the Indian state of Sikkim, after more than four decades, in an effort to boost bilateral relations.
Sikkim Chief Minister Pawan Kumar Chamling and C Phuntso, Chairman of the Tibetan Autonomous Region in China, Thursday cut a red silk ribbon at the Nathu La Pass dividing Sikkim and China's Tibet region, News Agency Indo-Asian News Service reported.
The two leaders declared the symbolic opening of the Pass located at the 4,545-metre-high pass. The pass is being reopened after 44 years. Indian traders crossed over to the Chinese side with silk scarves to welcome their Chinese counterparts.
This is the third border trade point between India and China the other two being Lipulekh pass in Indian state of Uttaranchal and Shipki La in Indian state of Himachal Pradesh.
As per modalities worked out between the two countries, normal trade through Nathula Pass would begin each year on June 1 and continue till September 30.
Traders from both sides would use trade passes for the purpose of border trade. Trade passes would also be issued to drivers of vehicles, which are utilised for the purpose of border trade, the news agency reported.To start with 60 four-wheeled vehicles including passenger buses, if any, would be issued border trade passes. This number could be increased or decreased based on mutual agreement, according to a statement by the Indian external affairs ministry in New Delhi today.
Border trade would be done for items contained in the agreed list of commodities for border trade between the two countries, which presently includes 29 items for exports from India to China and 15 items of import into India from China.
The Chinese delegation led by Phuntso crossed over to the Indian side along with some 100 Tibetan traders after the border was thrown open. A group of 100 Indian traders led by 80-year-old businessman Motilal Lakhotia went to the Chinese side and made their way to the trade mart at Renqinggang located some 10 km from Nathu La, the news agency reported.
India and China had signed a memorandum on expanding border trade on June 23, 2003. Modalities for conducting border trade between India and China are detailed in the memorandum on the resumption of border trade signed between the two countries in December 1991 and the protocol on entry and exit procedures for border trade signed in July 1992.
Business would be duty-free with India being able to export 29 items ranging from textiles and blankets, agricultural implements, liquor, cigarettes, tea, barley, rice, vegetable oil, and local herbs. Chinese traders would be able to trade in 15 items from horses to goats and sheep, yak tail, yak hair, goat skin, wool, and raw silk. According to a study by the Sikkim government bilateral trade was expected to reach 12 billion by 2015.
Nathu La was a major trading point between the two countries before the 1962 Indo-China war. In 2003 China gave up its territorial claim over the Indian state of Sikkim and India in turn had recognised the Tibetan Autonomous Region as part of Chinese territory.
