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Merchants await reopening of route between India and China

Merchants await reopening of route between India and China

Write: Sexton [2011-05-20]

As a teenager, Hari Prasad Agarwal was regaled with tales of Indian merchants leading weary mule caravans loaded with everything from axles to shoes over the high Himalayan pass of Nathu La for sale in nearby Tibet.
But the pass, part of the famed Silk Road, was shut when India and China went to war in 1962. Now, in the wake of improved Indo-Chinese relations, the route is set to reopen Thursday in a grand ceremony.

And when Agarwal heads to Tibet over the 4,300 meter-high (14,000-foot) mountain pass to trade his own wares, it won't be with tired beasts of burden, he'll be doing it in style with access to what is touted as the world's highest Internet cafe and ATM.

"There were days when up to 5,000 mules used to cross the pass, carrying anything from car parts, cycles, building materials and shoes," said Agarwal, 63, remembering stories told by his uncle.

"I am now dreaming of driving ... from Gangtok to Lhasa in a bus, enjoying the sights in Tibet's capital, and exploring trade potential," he said, sitting in his textile shop in Gangtok, the cloud-capped capital of the Indian state of Sikkim, which borders Tibet.

Agarwal is one of the 100 Indian traders who will be bussed across the barbed-wire border to a trade fair at Renqinggang on the Chinese side. Similarly, 100 traders from the Chinese side will go to the Serethang fair in India.

However, Thursday's visits by the Indian and Chinese businessmen will be symbolic only and no one will carry goods.

"Traders from the two sides will try to familiarize themselves with the possibilities of trade and business and check out the facilities available," said S.P. Subba, who heads Sikkim's Industries Directorate.

The opening of the pass is being hailed as another boost in relations between the two Asian giants.

Sikkim's chief minister Pawan Kumar Chamling and the chairman of Tibet's government Champa Phuntsok will cut the ribbon official opening the pass after a 44-year hiatus

"The resumption of trade is a sign of closer ties between the two countries. It will be possible to begin a bus service between Gangtok and Lhasa sometime later," Chamling said.

Authorities on both sides were working to make sure facilities like the bank, telecommunication center and customs facility were ready for the surge in visitors.

At a dry run on Tuesday, everything went according to plan, except for one small hitch, said Subba. There are not enough parking spaces for the 150 vehicles expected at the ceremony.

Initially the trade though the route will be limited.

On the Indian side, trade permits initially will only be issued to residents of Sikkim. "The idea is to make sure that the economic benefits of the border trade reach the local population," said Sikkim Industries and Commerce Secretary Karma Gyatso.

And while trade through Nathu La will be duty-free, Indian exports are limited for now to an approved 29 commodities, mostly food items.

The Chinese traders are restricted to brining in 15 types of goods, including goat and sheep skins, wool and herbs.

Traders are already clamoring to have other goods added to the list.