A Himalayan business pass
Trade soon became a major driver in Indo-China relations. In mid-2000 India suggested that trade points -– nearly 12 -- should be opened on both sides of the border. While border trade points through Lipulekh and Shipki La were opened by the 1993 joint working group meeting, Nathu La soon attracted the attention of both countries. With the Vajpayee-Wen Jiabao agreement in June 2003 on opening up of the pass in Sikkim with Changgu as the trading port and Renqinggang of Tibet, border trade is expected to go up.
It is estimated that overall border trade is only about $100 million while overall trade in 2005 reached more than $18 billion, indicating the miniscule portion of the border trade in overall trade figures. Of course, illegal border trade is estimated at as high as $1 billion. Dumchile in Ladakh, for instance, is a smuggler's haven.
Several surveys were made on the border trade potential between the two countries and the benefits thereof. Wide differences exist on the nature of such estimates. Border trade through Nathu La is expected to increase from $40 million by the end of 2006 to an estimated $2 billion in the next 10 years. Sikkim's traders and the Bharat Chamber of Commerce at Kolkata are expected to reap rich harvest in the coming years, although Nepal and Bhutan may see their trade figures dwindling if the Nathu La trade prospers.
Both countries -- close to India -- have expressed concern in this regard. For the indigenous Bhutias and Lepchas -- who demonstrated in New Delhi a few years ago against opening up of their natural habitats -- Nathu La trade may drastically affect their lives and environment in the coming years. Opening up of Nathu La may also see a major influx of peoples from across the border.
Image: A local villager at Nathu La in Sikkim
Photograph, courtesy: Sanjay P K