The Silk (and agro-chemicals?) Road

Another historic moment for Asian commerce: since July 6 (yesterday) and for the first time in 44 years, India and China are allowing trade to take place at the Nathu La Pass, a node of the ancient Silk Road between the old Himalayan kingdoms of Sikkim and Tibet. This narrow track some 4,300 metres above sea level, impassable for two thirds of the year, is the tenuous link between two border disputers-cum-trading partners. Much of the trading list could have been written during the Han dynasty 2000 years ago: spices, cashmere, goat skins, yak tails, horses and the famous silk, although watches and agro-chemicals make an appearance as well.

While the pass is currently better suited to mules than trucks and border trade will be limited for at least five years, it has the potential to once again become an important trading route for Asia's two rising economies. According to the Chinese Ministry of Commerce, trade between China and India was worth US$18.73 billion last year (up 37.5% over the previous year), with predictions for this to top US$20 billion this year.

Currently most Sino-Indian trade is effected by sea, obliging India-bound Tibetan goods to be routed through the port of Tianjin (near Beijing), in the opposite corner of the country! Even if only 10% of trade takes the “shortcut” across the Himalayan pass, an impressive US$2 billion worth of goods a year could soon be following this historic trade route.

Not all are convinced of the benefits: Nepalese traders worry they’ll be left out in the cold, animal advocates fear wildlife smuggling, not to mention those who continue to question Tibet’s status. But overall, two peoples haggling over prices in a place where they once pointed guns at each another is surely a sign of progress.

Comments

[Global Agro-Chemicals Market]

Hey thanks for that information, very interesting, I have gone through it.

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