India, China to resume border trade after 44 years

BEIJING: India and China have reached a historic agreement to resume border trade through the strategic Nathu La Pass from July 6 after 44 years of its closure.

The reopening of Nathu La pass would give a major boost to the local economies of the land-locked mountainous regions of the two Asian giants and promote bilateral trade.

The delegations of the two sides reached agreement and signed the agreed minutes late last night, an official source told PTI on Monday from Lhasa, capital of Tibet Autonomous Region.

The agreement allows residents living on the border areas of the two countries to trade nearly 30 items mentioned in the border trade agreements of 1991, 1992 and 2003.

The items, including agricultural implements, food grain, blankets, agro-chemical products, dry fruits, beverages and canned food, have reportedly been approved by the Indian government for trade, according to media reports.

"The resumption of border trade is a historic event, not only for enlarging trade, but also for greater relations between the two great countries," said additional secretary of the Department of Commerce, Christy Fernandez, who headed the Indian delegation.

"The reopening of border trade will help end economic isolation in this area and play a key role in boosting market economy there," Vice Chairman of the Tibet Autonomous Region, Hao Peng, who led the Chinese delegation, said.

"It will also boost the transportation, construction and service industries, paving the way for a major trade route that connects China and south Asia," he said.