LHASA: India should cancel the dated and restricted list of commodities it allows to be traded through the mountainous Nathu La pass in Sikkim, a top Chinese official has said, adding that new items should be added to increase the volume of trade through the land route.
India’s policies are not helping matters and fluctuating customs rules that are occasionally loose and constricted are pushing down trade through the route, Yang Guoliang head of the foreign trade department of Tibet Autonomous Region’s (TAR) department of commerce, told HT in Lhasa during the recently-held Tibet Development Forum.
Trade through the route was kicked off in 2006 and India allows export of 29 items and the import of 15 items with China.
In 2014, the volume of trade through the pass, closed between October and May because of climate, was around ₹28 crore. But clearly that’s not close to the potential .“First, the two countries should improve the facilitation of border trade. It’s not related to the governments only, but also to the customs. Second, we need to extend coverage of products,” Yang said.
“The Indian government has made a products list which is still the same as it was int he 1950s. It’ s not suitable to today’s market environment. We hope Indian government will cancel the limit so that we can provide products meeting people’s demands and increase trading opportunities,” he added.
{{/usCountry}}“The Indian government has made a products list which is still the same as it was int he 1950s. It’ s not suitable to today’s market environment. We hope Indian government will cancel the limit so that we can provide products meeting people’s demands and increase trading opportunities,” he added.
{{/usCountry}}The Nathu La pass at 4,545 metres is the shortest land pass for trade between China and India, and also the highest altitude land pass for trade. But is the Indian government keen to increase trade through the Nathu La? The answer is possibly: No.
Besides security fears, thereis apprehension that if restriction-free trade is allowed, Chinese commodities will flood India’s northeastern states. Chinese good are available in the region even now but if a free flow of trade is allowed, it will be flooding at a different scale.
“Land trade is not encouraged (by the Indian government) through the country. Be it Pakistan, Myanmar of China,” sitting MP from Sikkim, PD Rai told HT from India.