Trade between India and China, which reached US$ 18.7 billion last year, will grow further, gradually but constantly, after the reopening of the border crossing. No customs dues will be charged but the range of goods that can move across the border remains limited.

Gangtok (AsiaNews) – The pass at Nathu La and the revival of trade across the Sino-Indian border "will help end economic isolation in this area and play a key role in boosting market economy there," said Hao Peng, vice chairman of the Tibet Autonomous Region, during the ceremony which yesterday reopened the 'Gateway to the Silk Road' at 10 am (local time).

China's ambassador to India, Sun Yuxi, agreed. Just before crossing the border he told journalists: "It is not just symbolic, we mean business."

Once, in the first half of the 1900s, trade through Nathu La Pass represented 80 per cent of the total border trade volume between China and India. But following the 1962 war and the border closure, Sino-Indian trade went by the sea route. Last year it reached US$ 18.73 billion, up 37.5 per cent over the previous year.

It is now expected that the reopening of the border crossing on the Nathu La Pass and the launch of the Qinghai-Tibet Railway will lead to greater trade even though experts warn that "growth will be gradual".

Trade across the pass will be duty free. Traders from India will be able to sell cattle and iron across the border without paying customs dues; those from China will be able to export wool, herbs or electronic goods.

Currently, Indians can trade only 29 types of goods, mostly food items, whilst Chinese can export 15 types, including yak tales.

It is unclear whether people will be free to cross the border at Nathu La Pass as well.

• india
• china
• tibet
• border
• nathu
• la
• pass
• reopening
• trade