India and China agreed on Sunday to reopen border trade at the Nathu La Pass on July 6, according to Xinhua, the Chinese government-owned news agency.
The date was decided upon after delegations from both sides met in Lhasa, capital of occupied Tibet, for a meeting to discuss the issue.
“The reopening of border trade will help end economic isolation in this area and play a key role in boosting market economy there,” Hao Peng, vice chairman of the autonomous region was quoted as saying in the report. He also said it will give boost to the transportation, construction and service industries and pave way for a major trade route that will connect China to south Asia.
China and India signed a memorandum of understanding on the resumption of border trade at the Nathu La Pass in 2004. The Chinese State Council approved the plan on the construction of border trade markets in Yadong in the ensuing year.
The report citing the Chinese Ministry of Commerce said China and India recorded 18.73 billion U.S. dollars in trade volume in 2005, up 37.5 percent from the previous year. It said the volume was expected to exceed 20 billion U.S. dollars this year.
According to the report, China and India currently trade mostly by sea transportation. Import and export of goods between India and occupied Tibet Autonomous Region (TAR) were done through the port city of Tianjin.
