Via Lipulekh: At 17,000 Ft, A Trade door opens into China, Pg3

Key Highlights:

• The Lipulekh Pass, located at 17,000 feet in Uttarakhand, is set to reopen for cross-border trade with China after a seven-year closure.
• The Pass, a historical route for the Mansarovar Yatra and trade, was shut in 2019 due to the pandemic and subsequent India-China border skirmishes.
• It is situated at the trijunction of India, Nepal, and China's Tibet Autonomous Region, a region contested by Nepal based on the 1816 Treaty of Sugauli.
• The reopening holds significant strategic value and is crucial for the traditional livelihoods of local communities in villages like Gunji and Dharchula.
• The Ministry of External Affairs has issued 300 permits for traders this year, with a new road on the Indian side facilitating access to the Pass.

Lipulekh.png

Detailed Insights:

• The trade route has historical roots dating back to the 17th century, connecting Pithoragarh's Rang community with Tibet.
• The Panchsheel Agreement of 1954 formally allowed traders through the Lipulekh Pass with government-issued certificates.
• Trade was first suspended after the 1962 India-China war and reopened in 1992 under regulated conditions.
• Local traders traditionally exchanged Indian goods like jaggery and textiles for Tibetan products such as pashmina wool, rock salt, and borax.
• Despite its strategic importance, trade volumes had significantly declined by 2019, with imports at Rs 1.9 crore and exports at Rs 1.25 crore.
• The local economy in areas like Dharchula, once heavily reliant on this trade, has diversified into tourism for Adi Kailash and Om Parvat.
• The reopening is expected to revitalize the traditional barter and credit-based trade system, which operates outside modern commercial logic.
• Infrastructure improvements on the Indian side, including a new road, will reduce the trekking distance for traders and pilgrims.

Key Concepts Involved:

• Lipulekh Pass: A high-altitude Himalayan pass at the India-Nepal-China trijunction, historically significant for trade and pilgrimage.
• Treaty of Sugauli (1816): A treaty between the British East India Company and the Kingdom of Nepal, which Nepal cites in its territorial claims over Lipulekh, Kalapani, and Limpiyadhura.
• Panchsheel Agreement (1954): An agreement between India and China based on five principles of peaceful coexistence, which initially facilitated cross-border trade and pilgrimage through the Lipulekh Pass.