Surajit Khaund/Mizzima News

February 5, 2004

In 1994 India and Burma signed a historic trade agreement, soothing decades of antagonism between the two South Asian neighbours. The trade agreement was designed to boost border trade between the two countries and to create economic growth, especially in the border region. Initially border trade was poor due to the region’s undeveloped infrastructure and ongoing militancy problems.

Despite the slow start, the volume of trade has increasingly substantially over the past decade due to the concerted efforts of both countries. Trade across the border has always centred on Moreh due to its location and facilities. Through this trade point young entrepreneurs from India and Burma have stimulated a local economy that now boasts a substantial amount of revenue.

Buoyed by the growing volume of trade through Moreh, several traders have been requesting more trading points be opened so as to facilitate a stronger economic relationship with their Burmese counterparts. Specifically the governments and trade organisations from India’s north-eastern region have been lobbying for Longwa, Rih and Pangsau Pass to be granted trading point status with Burma. In response, the Indian Commerce Ministry has opened a new trade point, Rih, located near Zokhawthar in the Indian state of Mizoram. This second official trade point between the countries was inaugurated recently by Mizoram Chief Minister, Tawnluia.

Most of the north-east trade organisations have hailed the Indian government move, saying that Rih will help in increasing the volume of trade between India and Burma. RC Agarwal, president of the North East Federation of International Trade (NEFIT), said, “with the opening of the [new] trade point, this region will become a major trade hub in south-east Asia.”

“Mizoram, bordering Burma, is the most peaceful north-east Indian state and hence the traders [located in Mizoram] can run their business without any hindrance”, Agarwal pointed out.

Zoram, a businessman based in Mizoram, expressed happiness over the Commerce Ministry’s decision saying that the volume of trade between India and Burma will be greatly enhanced now that Rih has been opened to facilitate trade. He urged the local government members and organisations in Rih to do everything in their power to improve the existing infrastructure in order for business and trade to flourish.

Meanwhile, the Indo-Myanmar Traders Union has also indicted their support for the Indian government decision, saying that it marks a new beginning for trade in north-eastern India. The trade body adviser, Samarendra, told this correspondent that the Indian Commerce Ministry should pay more attention in this region considering its great potential. “We should look forward beyond Burma to tap into the markets of other South East Asian countries. Since the Indian government has been encouraging increased trade with South East Asian countries, the north east region of India should get more attention”, he added. He also repeated the desire of others in the region to have Longwa and Pangsau Pass also opened as trade points so that people living along the border near those towns can take advantage of the growing economic relationship between Burma and India.

It has been learnt that the India government has sanctioned Rs 2 crore (US$440 000) for the development of infrastructure at Rih. The amount will be spent mainly on improving of the existing road system.

Another important issue is that the trade bodies have not been successful in having more items included in the legal trade list. Presently there are only 22 items that can legally be traded with Burma.