Doklam standoff: Trade at Nathu La border down by 90 percent

The Doklam standoff between India and China at the Nathu La border resulted in a 90 percent drop in trade between the two countries in 2017.

According to the Department of Commerce and Industries of the Sikkim government, the value of exports from India to China in 2016 was Rs 63.38 crore while import was at Rs 19.30 crore. The following year, exports dropped to Rs 7.82 crore while imports stood at just Rs 1.02 crore.

Subrata Lakra, Superintendent of Customs at Serathang Land check-post told The Hindu, “In 2017, trade was closed for a few months because of Doklam. This year, the trade reopened on May 1 but it has not returned to what it was in 2016.”

Trade resumed in the region during May and June this year and the value of exports was Rs 7.3 crore and imports were at Rs 0.45 crore.

History of trade at Nathu La

When the Old Silk Route reopened in July 2006, trade at the Nathu La border started between India and China. At least 100 traders from either side have been crossing the border between May and November. The border is at an elevation of 14,410 ft and is open four days a week.

India exports more because 36 articles are allowed to be exported from the country while only 20 articles can be imported, said Ujjwal Rai, Deputy Secretary in Sikkim’s commerce department. He added that Indian traders can carry goods worth Rs 2 lakh every day and Chinese traders are allowed to carry goods of the same value in Yuan.

The articles imported mainly include garments and shoes while processed food, blankets and wheat flour are the main exports from India.

In 2017, a standoff took place between the Indian Armed Forces and the People’s Liberation Army of China over Chinese construction of a road in Doklam near a trijunction border area. Both the countries withdrew their troops from the site after over two months.