India and China are in talks to restart their cross-border trade that has been suspended since 2020, which was five years back. Officials say that the goal is to reopen trade through Lipulekh Pass in Uttarakhand, Shipki La Pass in Himachal Pradesh, and Nathu La Pass in Sikkim. The Indian Ministry of External Affairs said that it remains engaged with China on this issue.Â
High-Level Visits Planned To Push Negotiations Forward
Senior diplomats from both countries are stepping up the contact. China’s Foreign Minister is due to visit Delhi on 18th August to talk with India’s national security advisor under the existing special representative mechanism. This is the highest-level visit by a Chinese foreign minister to India since the 2020 Galwan clashes between the two countries.Â
The timing of this deal also matters because both countries face a lot of pressure from global trade shifts and new US trade policies. Recent reports show that America’s tariff moves have altered the wider trade landscape, making cooperation between neighbours more attractive politically.Â
Historic Cross-Border Trade And Possible New Priority Goods
Before 2020, the border trade at at passes ran for decades and mainly had local goods like spices, pottery, meal, plants, and some other very small items. The total trade value was very small compared to the overall India-China trade. But this matters to a lot of people who live near the border. Restarting trade would help those local communities and restore normal daily trading ties between border communities.Â
FAQs
- Which passes will be used for India-China inter-border trade?Â
Lipulekh Pass in Uttarakhand, Shipki La Pass in Himachal Pradesh, and Nathu La Pass in Sikkim are the three passes in discussion to be used trading.Â
- When will the meeting about this decision happen?Â
China’s foreign minister will visit India on August 18 to talk about India-China border trade.Â
- What goods will be traded through the India-China border?
Five years back, small communities at the border traded local goods like spices, pottery, medicinal plants, and other small items.
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