GOVERNOR URGED TO SAVE NATHU LA TRADE

Sikkim govt. urges Governor to save Nathu La trade
Gangtok (PTI):6 June 2009

With the much-hyped Sino-India border trade at Nathu La recording no transaction last month, Sikkim government has urged Governor B P Singh to convince the Centre to review the goods on the trade list urgently to save the bilateral trade from becoming a non-event, official sources said on Sunday.

"We have requested the Governor to take up with the comnmerce ministry the review of the goods on the trade list during his proposed visit to New Delhi in order to revive the traders' interests in the border trade", an official of the state commerce and industries department told PTI here.

A delegation of the commerce and industries department led by its director Ujjwal Gurung will visit the national capital soon to take up the matter with the Centre, he said.

At the local level, the state government held a meeting with the army and custom officials two days ago to dwell on the measures to boost border trade by way of the review of the goods list and improvement in the infrastructure between Gangtok and Nathu La, the official said.

The historic Nathu La trade hit its lowest point in May last, the first month of the resumption of trade this season, with no no transaction being recorded nor traders from either side visiting the marts for business purposes apparently to protest against the failure of the two governments to review the list of goods.

The officer said the key to resurrect the border trade lay strictly with the Centre which alone could decide the direction of the Sino-India border trade at Nathu La, he said.

Officials here concede that the traders have a point as the goods on the trade list were not not financially viable considering the costs incurred by them in import of goods.

"The state government has raised this point with the Centre for review of the goods list time and again, but to no avail as the latter appears to be not so keen to take the border trade to the next level for making it a full-fledged trade between the two countries from Nathu La frontier in view of security implications", they said.

The traders, on their part, have been adamant that they will not not take part in the border trade in spite of pressure from the state government agencies as the Nathu La trade was simply not not a judicious business proposition, a representaive of Indo-Chinese Traders Association of Sikkim (ICTAS) said.

Apart from the review of the goods list, the Centre should also consider lifting the restriction on the marketing of the imported goods ouside Sikkim to enable the traders to make some profits as the local market was already choked with Chinese goods, he said.

Nathu La border trade was re-opened by the two countries in 2004 after a gap of about 40 years with India setting up a trade mart at Sherathang and China at Renguingang in Tibet Autonomous Region (TAR).

Under the bilateral agreement, India had approved 29 items on the trade list, while the number of items approved by China stood at 15.

In the first two years, the traders had shown tremendous enthusiasm in the bilateral trade which grew substantially at Rs 9.6 million last year, but at the same time the demand for review of goods on the trade list grew louder resulting in no transaction of goods at the border trade last month.